BA risks demotivating workforce over pay

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Management
Written by Roberta Murray   
Friday, 19 June 2009

Asking employees to work without being paid is the fastest way to demotivate a workforce.

 

Last week, British Airways (LON:BAY) asked 30 000 employees to volunteer to take up to one month's unpaid leave or work unpaid for that time.

The aim is to save the struggling airline £26m a year in running costs.

However a management development expert has warned British Airways that asking employees to work without being paid is the fastest way to demotivate a workforce.

Mark Jacobs of The Mdina Partnership says messing with wages or holiday entitlement is more damaging to employee morale than anything else – including redundancy.

“In a big business like BA, most employees would rather run the risk of redundancy for some than have everyone work free for a month,” Jacobs said.

“That tactic could work in a small business with just a few employees, where everyone might happily pull together to ensure the business survives. But the mentality of employees in a big business is very different.

“The number one way to annoy an employee is to mess with their monthly income or the holiday they can take. It seems small but t he resentment can last for years.

“I have seen managers lose talented members of their team just because they restricted when they could take a holiday.”

He added: “What I advise British Airways to do is use a Talent Management system. This will allow the managers to engage more fully with employees. This is an excellent way of helping to motivate staff without using wage increases which is obviously more difficult now.

“Such a system would help to improve staff performance leading to a better client service but would also help to cut costs in the non productive areas.”
 

 

 
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