Leadership and motivation 'key to economic recovery'

Date: 18/10/2010

Strong leadership and motivation is going to be the key to the UK's economic recovery, it has been claimed.

According to new research from the Chartered Management Institute (CMI), 82 per cent of business leaders are still concerned about the after-effects of the recent recession and the impact it is having on employee motivation.

The organisation's latest poll showed that, in-part, pay freezes and a lack of recruitment activity was having a negative impact upon morale and engagement.

Commenting on the economic situation and its future trajectory following the imminent Comprehensive Spending Review, Lord Eatwell, the CMI's chief economic adviser, said: "If government policy on deficit reduction and public-sector reforms is to succeed, then highly skilled and capable managers will be needed."

"Improving the quality of management will help the successful evaluation of lending proposals," he added.

Recently, the CMI's Mike Petrook said that managers were coming around to the fact that they could no longer reward staff with pay rise after pay rise and that they would need to employ more innovative reward and recognition techniques to keep staff happy.

Written by Elizabeth Mewes ADNFCR-2060-ID-800120921-ADNFCR