Business owners blamed for recession woes

Workers whose companies have been hard hit by the economic downturn have low levels of trust in their bosses and blame the troubles on poor management, according to a report published today.

A study of 5000 employees has revealed that businesses that have experienced office closures and involuntary redundancies have seen a sharp drop in employer trust, with scores falling to 51 (on a scale of 1-100). By contrast, firms who have taken a more measured response during the recession, such as flexible working and budget cuts, have seen trust in their management rise, with a score of 68.

Furthermore, according to the research by the Institute of Leadership and Management (ILM), women bosses have emerged well from the recession, as trust in female business owners has increased by four points since last year’s survey. This year female chief executives scored 66 points, compared to 63 for their male counterparts.

Penny de Valk, chief executive of ILM, said: “It is clear that the actions of senior managers are scrutinised to a far greater extent during times of crisis, and major cuts are often seen as the direct result of poor management – even when this might be beyond their control.

“Yet in those organisations where impacts of the recession have been seen to be managed well, trust levels are significantly higher. Female CEOs in particular have fared well at driving trust during times of adversity.”

© Crimson Business Ltd. 2010