Them and Us: So why don't UK workers trust senior management?

The CIPD (professional body for HR) reports today that the lack of trust between employees and senior management is holding back sustainable economic recovery.

They conclude not unreasonably that employees who don't trust their senior managers are likely to be less productive and and less engaged.

Only 37% of employees trust them apparently which is an appalling figure.

The CIPD think that this is a problem that has been getting worse and may be linked to "hard" decisions due to the recession. I think it is much more basic than this. Some thoughts on why and what to do about it...

Number one is the huge and growing difference in pay between the top and the bottom. How can employees respect senior managers if they are content to fill their own pockets with gold while the people who clean their toilets live in poverty?

Even so called blue chip companies pay their workers so little that the tax payer has to subsidise their pay. 

Not only pay but  why do so executives in top companies often get decent pension contributions when their workers get rubbish?

Why if you need a company car to carry out your business do executives get luxury status cars while ordinary workers get basic models?  Surely everyone just needs a safe, comfortable and reliable car?

Why do some companies pay statutory only compensation to employees they make redundant but make huge payouts for executives they "let go"? 

Finally, a pet hate is the the "happy clappy" company culture guff.  Where everything is so, so wonderful.  Where staff are expected to volunteer to be "change champions" even if it means that their jobs and conditions are under risk by this change. This sort of things is bonkers. Demeaning "Ab Fab" superficiality. People can see through this nonsense.

The solution to this? How about a living wage plus for all; wage councils for sectors that can afford more than a living wage plus; modern rights and freedoms for trade unions; employee representation on boards and remuneration committees; truly progressive taxation of the higher paid, statutory pay ratios of low to highest paid....? Anyone else any other ideas?

Interestingly that only is such inequality bad for society (see "The Spirit Level" et al) but it is is making our economy uncompetitive and inefficient. Perhaps this imperative will mean that things might finally change?

...a fundamental lack of trust in senior management...

“Our research highlights a fundamental lack of trust in senior management among many employees, largely due to the lack of meaningful consultation and effective communication during major change such as redundancy programmes and restructuring”.

I’ll guess now some folk would have ignored this quote by assuming it is from some "dinosaur" producer interest trade union having a dig at the CBI or IOD.

But there is more -

“The impact of redundancies on the dole queue is well documented. But there could be a nasty hangover for employers too. Survivors of redundancy programmes left 'punch drunk' by the process may not have the levels of motivation and commitment needed for their employers to capitalise on any recovery. Many disillusioned employees will vote with their feet and leave as soon as the labour market picks up”

And finally...
“The survey also highlights the dissatisfaction people feel with the rewarding of failing senior executives. Failing chief executives and directors should not be financially rewarded when they leave organisations when their leadership has contributed to poor business performance. 'Rewards for failure' are contributing to a deep-seated sense of unfairness amongst employees who feel they've been less well treated. This needs to be addressed if trust in senior leadership teams is to be rebuilt”.

To my surprise this is actually from a press release sent out by “The Chartered Institute of Personnel and Development (CIPD)”, which was based on a recent YouGov Survey of 3,500 people.

I think that the analysis is spot on and there is massive mistrust between many senior management teams and the wider workforce. Interestingly the relationship between line managers and workers is usually (not always of course) pretty good which also reflects my experience.

I would occur with the solution proposed that there must be meaningful consultation and effective communication. What too often happens is so-called “consultation” only takes place after the decision has already been taken and on a “like it or lump it” basis. To me by definition real consultation can only take place via the trade unions. This should take the form, first and foremost, by meetings between trained and supported local trade union reps and managers/HR that have the actual clout to agree things.

As suggested “Rewards for failure” is not the only thing currently wrong. The pay gap between the highest paid and the lowest paid generally is far, far too high. Workers deeply resent this and may feel that there is caste system in their organisation which results in them feeling that they do not belong.

This has to change.

I have not been overly impressed with the CIPD in the past due to their views on the “rights” of agency workers however I think with regard to this issue we are singing from the same song sheet.

Of course locally as a trade union rep - things have always been sweetness and light between me and HR CIPD members over the years. Long may it remain so.