The workplace is beset by declining morale as cost cutting measures start to bite, says a new report.
New research suggests that as many as 81% of UK employers believe that cost cutting has damaged the culture in their workplace.
As professionals argue that “culture rot” – or the slow erosion of what made their company successful – is having a profound impact, over 80% of bosses have noticed it “creeping” into their office; while 28% recognise early warning signs that it is starting to infiltrate.
With the Autumn Budget impending, the cost of living crisis grumbling on, and many businesses nervous of the future (especially in hospitality) belts are being tightened. But with what impact on staff?
Worrying symptoms
The data comes from global talent solutions partner Robert Walters and reveals that declining morale is pervasive in workplaces across the country.
Professionals pointed to limited incentives or rewards (41%); poor collaboration across the company (36%) and unclear or broken-down communications (23%) are the three biggest red flags that a company is ailing.
“Culture rot is the silent threat currently impacting business productivity across the UK,” comments Lucy Bisset, director of Robert Walters North.
“When company values erode and morale dips, businesses lose their edge. This isn’t a case of dramatic failures, instead, success is slowly diminished through everyday disengagement, declining incentives and broken communication loops.”
Staff underwhelmed by financial rewards
One of the biggest sticking points for employees was that while 69% of professionals were eligible to receive bonuses this year, only 37% were happy with the bonus they received.
This reflects a wider scaling backing of benefits packages with 76% reporting that they have been impacted.
Bisset states that “comprehensive reward strategies are the backbone of a successful company culture,” and that businesses that cut them will see a rapid decline in productivity and quality of work.
Employees not aligned with core values
The report also suggested that 86% of employees don’t feel aligned with their company’s core values and workplace culture. This is despite 71% saying that these are essential factors they consider when applying for a job.
When things go wrong, it can then also be a factor in an employee’s decision to look elsewhere. According to a recent report from Pearn Kandola, three-quarters of UK professionals have admitted to leaving a job due to issues with workplace culture.
As many businesses concentrate on survival, their focus has moved away from growth and innovation. However, says Bisset, this can then mean that they lose their key players’ and that can have a huge impact on their business’ future.
She concludes that, “good culture isn’t just branding or a ‘nice to have’ – it’s a powerful performance driver and not something that can be reduced in aid of balancing budgets.”
