Employee morale has fallen during the global financial crisis but only 26% of employers are aware of any decline, a new survey from Hudson Australia reveals.
The Talent Tightrope: Managing the Workplace through the Downturn report also shows workers are voting with their feet, with 47% of employees looking for a new job while 56% say they will look for work in areas they previously wouldn’t have.
The report, which surveyed almost 3,000 employees and 247 employers across Australia and New Zealand, shows employers are ignorant of stress levels in the workplace.
While 44% of employees said morale has fallen, only 26% of employers acknowledged that fall. Additionally, 51% of employers say revenue has fallen, 41% have downgraded profit forecasts, 37% have restructured the business and 35% have made roles redundant.
These figures have led to 32% of employees being concerned about losing their jobs, with about 16% saying they feel their job is less secure than last year. A massive 54% of workers believe their workplace is more stressful since the start of the downturn.
Over 33% of respondents say they would categorise themselves as “extremely” or “quite” anxious about the downturn, with another 32% agreeing with the statement “management thinks it doesn’t have to reward and recognise our work anymore because we should feel lucky to have a job right now”.
This is causing an exodus of workers, with 47% looking for new jobs.
But while 63% of workers last year said insufficient salary was the main reason for leaving a job, only 45% said the same this year.
Instead, career development considerations have emerged as the main reason for leaving, with 58% of workers citing career advancement concerns as their driving factor.
Scott Stacey, general manager of Hudson Victoria, says the survey shows employers need to be on their game when it comes to addressing employee morale.
“I guess the report shows there is a significant disconnect between what employers think is happening and what their employers are telling us is the reality, and there are many things employers can do to fix that.”
“Firstly they need to talk to their staff. Take the polls to the workplace and really find out what is going on. A lot of communication from employees told us that bad communication was a factor. People are okay with getting bad news, but they just want honesty. One company said everything was fine, and the next day announced redundancies. Honest communication is important.”
Stacey also says that companies must look into other areas of reward recognition if they cannot raise salaries or give out bonuses.
“We’re in a period where the vast majority of organisations have implemented some sort of pay freeze or even pay reduction, and I think companies should look at other ways they can recognise their people if they can’t do it through salary reviews. Perhaps some sort of incentive program.”
“Additionally, organisations need to focus on career development for their staff. Money is no longer the primary reason for moving. Businesses need to think about developing a person’s career, and that involves sitting down person-to-person, division by division, and looking at what is important for those people. Ask people what they want and then put some steps in place to achieve that.”
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
