Managers fear redundancies and talent shortages in 2011.
New research from the Chartered Management Institute (CMI) paints a bleak picture of the ability of British business to cope with the demands of the 2011 economic landscape.
Almost half of UK managers (48%) are expecting further redundancies in 2011, and 43% do not believe their organisation has the right people to fulfil its 2011 objectives. The Future Forecast report reveals that of those concerned about being unable to meet objectives, 58% blame skills shortages, 45% poor morale and 44% a lack of leadership. The research reveals even deeper problems for public sector managers, where 86% predict redundancies in their organisations next year and 60% feel insecure in their own jobs.
Looking back on 2010, CMI’s survey highlights experiences from an unsurprisingly difficult year, with 44% of managers having to talk to staff about redundancy and restructuring; 46% having to give feedback on inadequate performance; 29% having to tackle inappropriate behaviour in the workplace; and 28% having to communicate pay freezes. Yet less than a third (29%) of managers surveyed felt that their organisation provided adequate training on managing redundancies; and over half (54%) felt that they would be helped by having more information on how to maintain staff morale.
However, indications are that green shoots of recovery are emerging, with 74% of managers looking forward to new challenges in 2011. Improving employee engagement is also a priority; 42% of managers are looking to improve their internal communications strategy; 38% intend to enhance training and development; and 24% will consider giving pay rises or bonuses to their staff.
Ruth Spellman, CMI chief executive, said:
“We started 2010 with high hopes that the economic situation was improving and workplaces would start to feel the effects of recovery. Sadly, it’s evident that this year has been one of the most difficult UK managers have ever had to face. What is truly worrying however is that, in many cases, managers are coping with these difficult conditions without the appropriate team to work with or adequate training in dealing with highly sensitive issues. The quality of our managers will be vital to building the success of this country’s economy, and professional, qualified managers will be crucial if organisations are to survive the tough times and succeed next year. With almost half of UK managers expecting further redundancies in 2011, the case for continuing to invest in management training has never been stronger. Business leaders will need to be actively looking for alternative ways to continue to develop the skills of their staff, despite restricted budgets.”
In terms of their own performance, 40% of managers are looking to develop their strategic decision making skills in 2011, with around a third looking to develop coaching and mentoring (34%) and communication skills (27%).
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