Managers: Low employee motivation to blame for poor business performance

Date: 15/12/2010

Managers blame lack of employee motivation, skill shortages and lack of leadership for bad performances, a survey shows.

The research, by the Chartered Management Institute (CMI), looked at how public, private and third sector companies faced tough economic times.

It revealed that 58 per cent of managers blamed skills shortages, 45 per cent pointed to poor staff morale and 44 per cent cited a lack of leadership.

Managers also blamed poor staff morale on pay freezes, redundancies and bad feedback on poor performances.

But it also showed that only 29 per cent felt that their employer provided them with adequate training to deal with making redundancies, and 54 per cent felt it would be helpful to understand how to maintain employee motivation.

Ruth Spellman, chief executive of the CMI, said: "We started 2010 with high hopes that the economic situation was improving and workplaces would start to feel the effects of recovery.

"Sadly, it's evident that this year has been one of the most difficult UK managers have ever had to face."

Last week Michael Rendell, head of HR at PricewaterhouseCoopers, advised businesses to prioritise staff morale during the recessions.

He said that employee motivation had taken a hit since the recession, as employees are worked harder sometimes for less pay or rewards.

Posted by Jo Morgan 

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