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Employee engagement 'eroded by corporate scandals'

24 July 2012

Business leaders are having to address growing disillusionment among employees that is being created by recent corporate scandals.

A survey by the Chartered Institute of Personnel and Development (CIPD) has revealed that only 36 per cent of workers trust their senior leaders, while 58 per cent of workers may be adopting a 'not bothered' attitude to their work.

This trend is taking place due to widespread media reports of unethical behaviours and corrosive business cultures, with this declining engagement manifesting itself via reduced productivity.

According to the CIPD, this issue must be address via a progressive approach to HR management, which can help to create a culture in which staff feel valued, respected and prepared to innovate.

Peter Cheese, chief executive at the CIPD, said: "Building trust in senior leaders and employee engagement requires a shift away from traditional command-and-control styles of leadership to a distributed leadership model where managers at all levels have the ability to win hearts and minds."

This comes after a recent report from the Chartered Management Institute stated that better business leadership is necessary to help the UK emerge from recession.

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Categories: Functional Practices, Human Resources

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