Not surprisingly, as the U.S. and world economies continued to sp u tter into the second decade of the 21st cen tu ry and more people either got fired or w orried th at unemployment m ight lie around the corner, the relationship between workers and bosses grew increasingly more brittle.Layoffs across every sector o f the economy were th e rule. By 2012, California had experienced its fifth consecutive year of budget cuts and layoffs; th e state's20 largest cities h ad reduced th eir fulltime workforce by 10,000 p eo p le.2 The banking industry, rocked by mismanagement and scandal, was p a r tic u la r ly hard h it, as Bank of America fired 2,000 and Deutsche Bank 1,900 in 2012, and analysts p red icted as many as 50,000 more layoffs were in the w o rk s3 at com panies from Starbucks and Yahoo! to General Motors and BMW to IBM and Blackberry. In the first six months of 2012, th e U.S. Labor Department rep o rted th at nearly 770,000 people lost th eir jo b s,4No wonder only one in five workers reported giving "full discretionary effort on th e job." At the same time, according to an Edelman study, companies w ith "highly engaged employees" outperformed the total stock market and enjoyed total shareholder returns 19% h ig h er th an the average; those w ith low engagement levels saw total shareholder returns 44% lower th an average.5So what's an organization to do, especially to reassure these younger p articipants in th e workforce?
A ccording to th e Edelman study, reth in k in g employee engagem ent to drive
b etter resu lts isn 't easy. Management, Edelman says, must be w illing to answer
sev eral q u estio n s in a tte m p tin g to lift employee m orale, co m m itm en t, an d
engagement..
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