A 17 percentage point decrease in employment engagement since 2006 threatens the UK's economic recovery, according to consultants Mercer.

A survey of 1,000 employees from 79 multinationals suggested that a "reward perception gap" has arisen in many workplaces as employers "misjudge drivers behind staff attraction, retention and motivation" and "underrate the importance of base pay, job security and work-life balance to employees while overrating bonuses and career development."

Mercer’s head of human capital in the UK, Chris Johnson, said: "There is a direct relationship between an engaged and motivated workforce and company productivity.

"At a time of economic uncertainty, we’d expect high employee engagement, especially with many staff appreciating their companies’ efforts to limit redundancies during the recent recession. The reverse seems to be true — primarily due to a mismatch in perceptions."

Most respondents believe their reward levels to be average or worse compared to rivals, despite employers believing the opposite.

• See HR's own exclusive research into employee engagement in the December issue of HR magazine, and please join in the debate at our FREE breakfast seminar om January 18th in London, in association with Fairplace. For more details contact Ed Wyre at edward.wyre@markallengroup.com