After years of cost shifting, pay cuts and layoffs, employees have accepted their new roles as chief overseers of their own careers and financial security, according to a Towers Watson study exploring the post-recession attitudes of employees. But the burden of these added responsibilities on top of a stressful work environment is taking an emotional toll as employees doubt their ability to handle their expanding responsibilities.
Executives should not ignore employee worries or overlook their unfulfilled expectations. Instead, company leaders should take steps to help employees be successful in the context of an evolving employment relationship.
“In reality, the cost-saving measures enacted by executives during the recession are not cost-free decisions because they add stress to employees,” says Tom Davenport, senior consultant with Towers Watson. “These changes have drained employee confidence with potentially damaging consequences.”
Smart Business spoke with Davenport about the threats to employee engagement and why executives should intercede before productivity suffers.
What did the study reveal about employee attitudes?
In our survey of 20,000 workers in midsize to large companies, employees expressed angst about their futures. They’re worried about saving enough money for retirement as companies retreat from defined benefit pension plans, and about affording health care coverage as employers shift costs. They crave an emotional connection with their leaders and support for their careers, yet they sense a growing gap between their expectations and leader behavior.
Employees also said that executives often bend to the demands of shareholders and Wall Street analysts at their expense. In fact, employees say they rank third on executives’ list of priorities after shareholders and customers.
Overall confidence in senior leadership was disturbingly low with only 50 percent of employees reporting a favorable view. It’s time for executives to rebuild trust and help employees manage their diverse responsibilities in order to bolster their confidence.
How can employers boost employee morale?
Start by selecting the right managers and empowering them to make a difference. Executives often believe that line managers need more technical expertise than relational skills because they wear many hats. They think middle managers create additional expense and impede the lines of communication. In reality, supervisors and middle managers play a vital role in implementing major initiatives like cost reductions. They can communicate the reasons for change and take action to reduce stress in the work environment. Promote managers who possess a full range of competencies, and don’t overload line managers so they can be thoughtful leaders who spend quality time with direct reports.
