2009/2010 U.S. Strategic Rewards Report
Organizational restructuring has been pervasive and deep.
- Seventy-two percent of participants have gone through a restructuring or made layoffs since the economic downturn began in 2008.
- Regardless of whether companies downsized, 89 percent of respondents report taking at least one or two actions to minimize the extent of workforce downsizing.
- On average, survey participants report taking 3.5 different actions.
There has been a negative impact on some employee perceptions that could lead to higher attrition when the crisis is over.
- Top-performing employees are 20 percent less likely to agree that they understand the link between their own goals and the company’s goals than in 2008.
Employees believe the changes made by their companies are affecting work quality and delivery to customers.
- Forty-one percent of employees indicate that changes have had an adverse impact on quality and customer service, while only 17 percent of employers believe this is the case.
These results are a signal that things are not going to return to “normal.” As a consequence, companies must take proactive measures to mitigate the negative effects of cost-cutting actions on employee morale and productivity. Employers will need to reevaluate the “deal” with employees — the Employee Value Proposition — and create a renewed bond as the economy recovers.
Posted on Wed, August 25, 2010
by Towers Watson and World at Work filed under