LOS ANGELES, Oct. 14, 2008 — Just when they thought things couldn't get any worse, CEOs are now seeing a drop in employee morale. Once again, it's the United States economic crisis that's to blame. Nearly three-fourths of CEOs link suffering staff attitudes to the economic climate, according to the 2008 Management Action Programs Inc. (MAP) Quarterly CEO Survey conducted by MAP (http://www.mapconsulting.com) and Vantage Research (http://www.vantage-research.com). However, while business leaders cannot control the impact the economy has on their employees' overall lives, they are taking steps designed to boost confidence in their organization and inspire productivity.
"Low employee morale, regardless of its cause, is infectious, and company leaders must take proactive steps to improve their employees' outlook," says Lee Froschheiser, president/CEO of MAP, a veteran business-consulting firm that has accelerated sustained growth for over 13,000 companies and 160,000 executives since 1960. "Interestingly, the majority of the CEOs who have experienced a drop in their employees' morale have also rated revenue growth as their number-one priority. But to support growth objectives, these business leaders need their employees to be fully aligned to the goals."
The first step in tackling this issue is acknowledging it exists, which is what many of the surveyed CEOs are doing. The next step is motivating the workforce, which inspires confidence and increases productivity. How are CEOs motivating their employees? According to the survey, when CEOs were asked to choose the most effective ways to motivate, the respondents' top three picks included "financial rewards/benefits," "communications/keeping employees informed," and a "quality of workplace culture."
"Money talks, especially in a hard-hit economy, but a bonus or financial incentive isn't the only conversation on the table," Froschheiser says. "Savvy CEOs are generating energy within their companies by being transparent about their successes and failures, and keeping the lines of communication open. They are challenging employees to set higher goals, empowering their hires, glorifying their works, and demonstrating their role in the company's future. These tactics may seem fundamental, but these basic strategies really do work."
In addition, the survey uncovered other newsworthy topics, including:
- Workers are "staying put," as 77 percent of CEOs say their companies are not experiencing high levels of voluntary employee turnover.
- CEOs are seeking ways to contain costs. They're focusing on cost containment as much as revenue growth.
- Company leaders predict the beginnings of economic recovery in late 2009. Since January 2008, optimism about a recovery has waned, according to previous quarterly MAP surveys.
For more information, visit: http://www.mapconsulting.com/
Management Action Programs Inc. (MAP) offers business leadership training and consulting services to organizations nationwide through its Western U.S. offices. MAP has an active alumni network, providing its supporters online seminars and value-added communications.
Email, 888-834-3040, http://www.mapconsulting.com
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