Info-Tech’s recent interviews with clients indicate that one of the primary concerns of IT managers in a recessionary environment is the rising cost of living and the resultant challenges for employees. In addition, clients have linked layoffs or budget cuts to a drop in employee morale and productivity. The following recommendations are based on interviewee experiences.
Maintaining growth in a weak economy is a challenge for any organization, and without good employee morale, the task can become impossible. Low morale can lead to increased turnover, decreased productivity, and compromised work quality. Hence, low morale can lead to managers not being able to meet their targets, negatively impacting the bottom line.
The senior vice president of a large pharmaceutical company that was interviewed for this report stated, “When I was told I had to reduce my budget 10 years ago, the first thing I responded with is that I am increasing entertainment by 20% because I will need to do a lot more here to avoid burnout.” In his current position he has implemented a telework policy and restricted cuts to the training budget at 50% to keep morale up.
