Shell shocked managers feel the pressure of recovery

14 October 2009 - CMI's Economic Outlook report identifies trends and predictions in the marketplace, calling on Government to take firmer action to help managers and employers on the road to recovery.

Despite assertions from economists that the worst is over and economic recovery has begun, a new report launched by CMI (Chartered Management Institute) today warns that managers still expect all forms of investment to be cut and business insolvency to rise before UK workplaces start to see any positive effects.  Economic Outlook also calls on the Government and employers to ensure the UK’s 4.6 million managers and leaders get the support they need to cope with the pressure of turning their organisations around.

The survey paints a bleak picture of workplace conditions post-recession, with morale worse than earlier this year in 65% of organisations and the vast majority of UK managers (82%) feeling negative effects of the downturn.  A combination of recruitment freezes (50%), compulsory redundancies (33%) and pay freezes (44%) are all partially responsible.

Although numerous bodies have recently declared the recession to be at an end, the report revealed almost three quarters of managers believe it will be a year or more before they see their organisations start to recover.

Lord John Eatwell, chief economic adviser to the CMI says: “The expectation by many is that now the economy is showing signs of recovery, managers will begin to turn things around.  However, our research suggests there will be a substantial lag between recovery being officially declared and when conditions will start to improve for the people at the sharp end. Employee engagement is also suffering with most people losing colleagues, facing increasing workloads and seeing their efforts go unrewarded because of pay freezes.  Clearly, firms will need to look to other ways to get morale levels up if managers are to meet the challenge of rebuilding a competitive economy.

“An economic priority for the Government has to be supporting managers in every way possible. We know from our research that the desire of organisations to invest in skills and the development of staff is still strong, but without fiscal support for such investment these areas will continue to suffer, undermining future competitive success. Managers are the rebalancing of the economy and to Britain’s future success. Their opinions matter”

Ruth Spellman, CMI chief executive adds: “Our second Economic Outlook report shows that employers are overwhelmingly in favour of tax breaks for skills and, while spending cuts are very much on the Government agenda, everything possible should be done to protect investment in this area. The fact that morale is so low is yet another reason for the Government to take action to give British businesses a badly needed boost.  Managers need to feel that employers and the Government are behind them.”

The Economic Outlook report makes a number of recommendations for Government including protecting investment in skills, simplifying regulation and ensuring businesses have the financial resources they need to invest in key areas such as equipment and staff development. The full Economic Outlook report, including recommendations can be downloaded at www.managers.org.uk/outlook.

Conducted by CMI on a six-monthly basis, it surveys British managers across all industry sectors and examines their views on the economy and its impact on their organisations.

It follows the launch of CMI’s Better Managed Britain Manifesto which outlines the commitments needed from employers, policy-makers and managers themselves to get Britain back on its feet.

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Further information and interview requests:
Faith Riding
Tel: 020 7612 8865
Email: faith.riding@kindredagency.com

Mike Petrook / Jo Bowles, Institute Press Office
Tel: 020 7497 0496; outside office hours: 07931 302 877
Email: press.office@managers.org.uk 

CMI’s Chief Executive Ruth Spellman, Chief Economic Adviser Lord John Eatwell and Director of Policy and Research Petra Wilton are available for media interviews. Please contact the numbers above.

NOTES TO EDITORS
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