This is the finding from engagement consultancy Right Management's Engagement and Wellness Survey 2010, which asked 300 managers for their views on employee engagement.
Nearly half (44%) of managers questioned admitted they had seen a reduction in employee engagement spend during the recession. This is despite the fact the majority (60%) of these same managers believed an engaged workforce affects a company's performance.
Right Management's managing director, Jayne Carrington, said: "Addressing employee engagement is as much about equipping managers with the skills, confidence and clarity to make a difference to their team's performance, energy levels and motivation. This will shape the success of those organisations which weather the storm of economic recovery."
This research comes as Opportunity Now today publishes findings that shows 78% of managers think agile or flexible working has helped to retain and motivate important members of staff, during the recession while 62% think that flexible working makes the team more responsive to internal and external customers.
