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Looking Toward Recovery: Realigning Rewards and Re-Engaging Employees -
2009/2010 U.S. Strategic Rewards Report
Executive Summary
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The recession has had widespread and unprecedented impact on
U.S. employers and their employees. While the worst might be over,
companies need to be prepared for the effects to linger even after the
economy recovers. The scope and number of actions employers have
taken in response to the economic crisis have resulted in a drop in
employee engagement (particularly among top-performing employees),
and this could have a long-lasting and detrimental impact on productivity,
quality and customer service.
But many companies have not considered
the impact of their actions on their Employee
Value Proposition (EVP) and consequently
have created significant attrition risk among
top-performing employees. As companies
emerge from the recession, they need to
ensure their EVP aligns with their new business
environment. Reviewing and rebuilding their
EVP will enable these employers to engage
and retain the current workforce and to provide
a compelling employment deal to critical-skill
and top-performing employees.
Key Findings
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Organizational restructuring has been pervasive
and deep.
- Seventy-two percent of participants have
gone through a restructuring or made
layoffs since the economic downturn
began in 2008.
- Regardless of whether companies downsized,
89 percent of respondents report
taking at least one or two actions to minimize
the extent of workforce downsizing.
- On average, survey participants report
taking 3.5 different actions.
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There has been a significant negative impact
on employee engagement.
- While organizations have been making
major changes, employee engagement has
dropped 9 percent since last year for all
employees and close to 25 percent for
top-performing employees.
- Top-performing employees are 20 percent
less likely to agree that they understand
the link between their own goals and the
company’s goals than in 2008.
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Employees believe the changes made by
their companies are affecting work quality
and delivery to customers.
- Forty-one percent of employees indicate
that changes have had an adverse impact
on quality and customer service, while
only 17 percent of employers believe this is
the case.
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