‘Bonuses are back’ makes a good headline, but it disguises the reality of life in the city. Research by ORC Guideline shows that job losses in financial services represent about eight percent of the total UK unemployment figure of 2.4 million.
The old model is broken – for the time being, at least. Many people will look in vain for their big bonus. Without it, people accustomed to this powerful financial incentive for high performance may drift, or become actively disengaged. This is a serious business risk when a demotivated fund manager could mean the loss of millions in minutes.
I read with interest the recent MacLeod Review by David Macleod and Nita Clarke, in essence a comprehensive review of employee engagement. At its heart is a simple, clear message. Employee engagement does make a difference to business performance. There’s nothing new in that, but the real import of the review is the rallying cry it makes for a national awareness campaign.
That provides a real test for Peter Mandelson’s Department for Business Innovation & Skills. Can government show the imagination and skill to galvanise employers and leaders to put the lessons of this report to work? For if employee engagement