Launching its latest six-monthly barometer of business optimism at its annual conference this morning, the CMI found morale was worse than earlier this year in 65% of organisations, (and ‘much worse' in 19% of businesses), with three-quarters saying it will be more than a year before their organisation recovers.
Of the near-1,000 managers polled from its membership, the number that said the recession had negatively impacted them actually increased from 80% to 82% in the past six months. Meanwhile 42% said they had witnessed deterioration in employee engagement.
Lord John Eatwell, chief economic adviser to the CMI, said: "The expectation by many is that managers will begin to turn things around as the economy improves. But this 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."
CMI chairman Ruth Spellman added: "The fact morale is so low is yet another reason the Government needs to take action to give British businesses a badly needed boost. Managers need to feel employers and the Government are behind them."
The report recommends that the Government protects investment in skills, simplifies regulation and ensures businesses have the financial resources they need to invest in equipment and staff development.
