“Nonfarm business sector labor productivity” in the United States increased in the third quarter of 2009.  Yet, some studies show that employee morale is dropping.

In many cases, compensation increases or bonuses are no longer an option to help boost morale. In today’s climate of continued cuts, elimination of holiday bonuses and extras, advice around how to motivate workers without additional financial cost is common. Recommended strategies can include involving employees in decision-making, ensuring learning opportunities, keeping communication open, increasing workplace flexibility, providing low-cost rewards frequently and focusing on future long-term success.

Recently, a Hewitt survey of more than 300 companies showed “a steady trend away from these bonuses toward the adoption of more formal pay for performance programs to reward and thank employees.” Meanwhile, a Deloitte survey uncovered “Little evidence companies are adjusting compensation plans to motivate employees”

Under these constraints, employees must see a return to previous levels of organizational financial success before they begin to earn rewards like those seen in the past. Thus, the focus provided by a strong performance management system is more important than ever.

References:

Bureau of Labor Statistics. “Productivity and Costs, Third Quarter 2009, Revised.” Press release [www.bls.gov]. December 3, 2009.

Deloitte Development LLC. “Under pressure Compensation and retention during a turbulent economy” [www.deloitte.com]. December 2009.

Hewitt. “Hewitt Survey Reveals Record Low for U.S. Holiday Bonuses” [www.hewittassociates.com]. December 15, 2009.