Give staff a say in cost-cutting to boost employee motivation

Date: 14/12/2010

Employers should consult staff when looking to implement cost-cutting measures as failing to involve them could lower employee motivation, according to the Trades Union Congress (TUC).

Paul Sellers, policy officer at the TUC, stated that many companies are looking to streamline costs at the moment, however, achieving this by putting extra pressure on workers and scrutinising their behaviour will be counterproductive.

These comments follow a recent study by IRIS Accounting & Business Solutions which found that a growing number of businesses are scrutinising the behaviour and productivity of their employees due to the economic climate.

Over half of businesses are scrutinising time sheets more closely, while two-thirds are controlling expenses more tightly.

"Employers that do this will find that rather than finding pots of money hidden by staff they will simply generate resentment, which will result in lower productivity," Mr Sellers continued.

"Employees often have great ideas about how to save money so the best approach is to involve and engage staff in these exercises, ideally through the union or workplace representatives."

Posted by David Farrior
 

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