It is expected that official figures to be released later this month will reveal that the UK exited recession between October and December 2009. Obviously this is good news, but some commentators are already questioning how long the recovery will last. Ernst and Young’s economic forecasting group warn that this was driven by a combination of temporary measures. They are also claiming that the UK economy faces a decade of painful readjustment. It gives UK businesses a lot of food for thought as we get our teeth stuck into 2010.

Unsurprisingly, 2009 was extremely challenging with the big issues including the worldwide recession, political sleaze in the UK and the growing build up to the next election. Combined, they provide business with many policy and practical questions to think about in 2010. As we are already nearly one month into the New Year, it is encouraging that UK managers are enthusiastic about learning lessons from what has passed. For one thing, it seems they are putting the development needs of their employees over and above other considerations.

"CMI’s forecast for 2010 remains cautiously optimistic – yes, green roots are beginning to become visible, but they desperately need to be nurtured."

 

Interestingly the latest Chartered Management Institute (CMI) research found that managers across the UK are also going to being putting an emphasis on re-engaging with their staff in 2010. It is really encouraging to see that employers are realising employee engagement is going to be key to their future success and even more so that 45% of those questioned are pledging to put their team’s development first. Just over 1 in 5 (22%) are aiming to provide more prompt support to boost performance and 27% have resolved to acknowledge the efforts of their staff and say ‘thank you’ more often. 

Clearly, there is an acceptance that investing in the development of staff through training and development as well as acknowledging their achievements increases an employer’s chances of taking advantage of the upturn. Also, looking inwards and putting staff back at the heart of their organisations will minimise the risk of staff feeling unappreciated meaning they are less likely to look elsewhere for employment once the job market improves. 

However, it is not all going to be plain sailing and as the research shows managers are anticipating three key barriers that will make it hard for them to keep their ‘employee engagement resolutions’. Three quarters (75%) stated that a lack of time will be a hindrance as will reduced budgets (42 per cent) and a reduced workforce (33%). Tackling these hurdles will not be easy, but good leadership is about providing a clear sense of purpose and direction. It means that the onus is on employers to ensure their employees know their role and how what they do makes a real difference. But talk is cheap. True engagement ensures employees have a voice. CMI is in no doubt that where this happens, employee satisfaction, productivity and profitability all go up.  

CMI’s forecast for 2010 remains cautiously optimistic – yes, green roots are beginning to become visible, but they desperately need to be nurtured. The UK needs to meet the current of crisis of confidence in management and leadership with a more competent workforce and one that is well managed and well led. The burden of action to achieve this falls on all of us: Government, employers and individuals. Clearly, basic level skill development is no longer good enough and 2010 must see the development of management and leadership skills become a national priority, with a particular focus on the skills to engage staff. After all, managers and leaders are vital to wealth creation and we can’t expect individuals to manage and lead unless they have room to develop. Ultimately, the economic, social and political challenges that we face across every industry sector means that a radical new approach is needed. Finally, more attention needs to be paid to the development of practical skills that matter in the workplace and we need this to happen now.