UK workers trust bosses less than US counterparts

UK, February 15, 2005 - UK workers’ attitudes towards senior management are significantly worse than those of their US counterparts, with less than a third expressing trust and confidence in their leaders, according to Watson Wyatt.

In its WorkUK and WorkUSA surveys – which involve a representative sample of over 15,000 private sector workers in the US and UK – Watson Wyatt found that while 51 per cent of employees in the US had trust and confidence in the job being done by their organisation’s leaders, only 31 per cent of UK workers felt the same.

"Clearly there may be cultural factors at play here when we compare the UK and US," said Andrew Cocks, European head of employee research at Watson Wyatt. "But nevertheless, UK business leaders can take little comfort from these results. There is a clear need for a better dialogue between management and employees and the development of a real climate of openness and trust, especially if we are going to compete effectively with the US in the new ‘cheap dollar’ world."

Watson Wyatt found that employees’ ratings of senior managers in the US had risen from a low of 44 per cent in 2002, following Enron and other high profile corporate scandals. There is no evidence for a similar upward trend in the UK survey.

"Lack of confidence in senior management does not just make for a difficult atmosphere at work," said Andrew Cocks. "Our research shows that it can hit the bottom line hard. In an employee survey we recently conducted for a major European company, belief in senior management proved to be the strongest leading indicator of new product sales and was their top business performance indicator."

According to Watson Wyatt, effective communication is a key way in which leaders can build trust with employees. Despite this, and only months before the implementation of the new EU Directive on Informing and Consulting Employees, only 30 per cent of UK workers believe that management explains the reasons behind major decisions and as few as 18 per cent believe that management successfully involves employees in decision making.

"Greater mutual understanding has to be key to the future success of business in the UK," said Andrew Cocks. "In order to play an active part in taking any organisation forward, employees need to understand and support any vision leaders have for the future and know how they can contribute to the process in their day to day work. Our research has consistently shown a link between factors such as employee alignment and commitment and enhanced business and financial performance."

Employee Research at Watson Wyatt

The WorkUK and WorkUSA surveys are part of Watson Wyatt’s Work Series that also includes surveys of workers from the Asia-Pacific region and continental Europe and is one of the largest and most statistically representative surveys of the attitudes of employees worldwide. The 2004-5 survey cycle includes responses from over 120,000 employees worldwide across a range of large and medium-sized employers incorporating all job levels and industry sectors. As part of Watson Wyatt’s global benchmarking capability of employee opinions, the studies also examine areas such as communications, pay and benefits, performance management, HR effectiveness and work-life balance.

Watson Wyatt provides tailored employee research which helps organisations identify what it takes to create and maintain a workforce of engaged and committed employees. The research solutions help to identify improvement actions that increase customer satisfaction, attract and retain top talent and build confidence and trust between employees and management, thereby driving business performance.

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Watson Wyatt Worldwide

Watson Wyatt is a global consulting firm focusing on human capital and financial management. We specialise in employee benefits, human capital strategies, and insurance and financial services. We focus on combining human capital and financial expertise to deliver business solutions that drive shareholder value. Watson Wyatt has more than 6,000 associates in 88 offices around the world.

www.watsonwyatt.com