Thank you to everyone who participated in our March survey. The results make for interesting reading as the universally acknowledged financial crisis meanders on, or not, depending on what you read on different days and in different publications...and how many European countries have their credit rating downgraded in the course of one week.
The nature of the reporting in the media continues to exhibit bi-polar characteristics and in many cases the good news is that the various measures are deteriorating less slowly than they were before. Occasionally we are cheered by an article that promises that green shoots are bursting out all over.
The Woodburn Mann questionnaire was completed by 298 people
48% of the respondents are Members of the Executive Committees of the organisations where they are employed.
25% hold the responsibility of Managing Director and 3% are Chairmen of the Board of Directors.
21% of the people who participated are employed in middle management roles and 3% are from below the middle management level.
Summary of the majority responses:
The challenges
89% of respondents indicated that the economic downturn has had an impact on their work environment
47% reported that business has slowed by between 10% and 50%
46% considered the most significant challenges facing their businesses to be a combination of cash flow, maintaining morale and retaining key people
The light at the end of the tunnel
53% anticipate a sustained economic recovery in South Africa by early 2011
59% have responded to the changing economic conditions by exploring new strategic directions in business to weather the downturn
60% of respondents report that less than 10% of the staff in their organisations have been negatively affected financially through a reduction in remuneration (including diminished or non-payment of bonuses) or retrenchment during 2009, as a result of the downturn
71% of respondents felt that the Board/their boss had responded to the downturn in the correct manner
54% of respondents are content in their current roles while the downturn lasts but the remainder would seriously consider a suitable career move if it presented itself.
The Full Report Back of the Responses to the questionnaire
89% of respondents indicated that the economic downturn has had an impact on their work environment.
In terms of how the crisis has impacted on the amount of business being done, 13% of respondents have actually experienced an increase in their business activity. 29% experienced no decline, or less than a 10% reduction in activity. The majority of respondents, 47%, indicated that business has slowed by between 10% and 50%. The remaining 11% of respondents experienced more than a 50% decline in business, with 4% of those respondents having had no choice but to close their doors.
The majority of respondents (53%) consider that there will be sustained economic recovery in South Africa by early 2011. The turnaround has already happened for 2% of the participants. 21% of respondents see the end of 2011 as being the turning point while 13% are at the optimistic end of the scale and believe that South Africa should be in sustained recovery by July 2010. The pessimists are not the lunatic fringe by any means, with 11% of respondents believing that South Africans will still be looking forward to economic stability on New Year's Eve 2011.
The overwhelming response to the changing economic conditions has reportedly been to explore new strategic directions to weather the downturn. This was the path taken by 59% of the respondents. 19% are managing with either making no changes at all, or undertaking minor restructuring, while 18% have had to retrench staff. The rest of the respondents (4%) have reduced employee hours or are seriously considering closing (or have closed) their businesses.
The picture that emerged from the responses to the question ' How many employees in your organisation (including contract workers) have been negatively affected through a reduction in remuneration (including diminished or non-payment of bonuses) or retrenchment during 2009 as a result of the downturn' is an encouraging one. 60% of respondents have seen less than 10% of the staff in their organisation adversely affected by the downturn.
Unfortunately 28% saw retrenchments and diminished financial rewards for between 11% and 50% of the people in their organisation. 12% saw more than 50% of the workforce affected.
46% considered the most significant challenges facing their businesses to be a combination of cash flow, maintaining morale and retaining key people; 18% opted for meeting cash flow obligations as their most significant challenge; 15% highlighted maintaining employee morale and motivation; only 8% were concerned solely with retaining key people; and the fortunate 13% (those who have actually experienced an increase in business) felt it was business as usual with no particular concerns.
71% of respondents felt that the Board/their boss had responded to the downturn in the correct manner while 29% felt that the response by the organisation to the changing economic circumstances had not been appropriate or timeous.
So how are people feeling about their jobs in the current scenario? Well it is a close run thing with 54% of respondents content in their current roles while the other 46% would seriously consider a suitable career move if it presented itself.
Given that retaining key people is one of the challenges facing organisations all the time we have prepared a questionnaire to gather feedback on how best to motivate people while negotiating a recessionary business environment. Our next questionnaire considers 'What replaces Money as a Motivator during a recession'. Please take a few minutes to complete the questionnaire. Results will be published at the end of May 2010.
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