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Staff burnout threatens finance sector

Thursday, 03 April 2008

Research has revealed a crisis of managerial confidence at the heart of European banking.

The results could have profound implications for the industry's attempts to stave off looming recession.

Crashing and burning

The study from global HR consultancy BlessingWhite, which took in the views of over 7,000 professionals globally, shows that European financial workers fall below the global average for being happy and productive in their jobs.

Just 21 per cent were fully engaged - meaning they combine maximum contribution with maximum job satisfaction - compared to over 30 per cent globally.

More alarmingly, almost one in five of respondents categorised themselves as 'disengaged' - that is, discontented and unproductive.

When added to those who are 'crashing and burning' - meaning unhappy but still reasonably hard-working - a third of European banking and finance sector workers are characterised by a lack of dynamism in, and enthusiasm for, their job. Globally, the average is just one fifth.

Lower level of retention

According to BlessingWhite's research, the trend for disengagement worsens as workers get younger.

Forty-six per cent of those questioned from 'Generation Y' (born after 1978), identified themselves as 'disengaged' or 'crashing and burning' already, with just 14 per cent seeing themselves as 'engaged'.

Among the older generation, born after 1946, almost a quarter are 'engaged', and just 15 per cent put themselves in the bottom two categories.

With disengagement and this greater propensity to 'burn out' comes a lower level of retention and greater instability across the sector.

When asked if they plan to stay in their role through 2008, almost three quarters of European respondents answered 'no way' or only 'probably'.

Values-driven leadership

Tom Barry, European managing director at BlessingWhite, says that the pressure is on within the banking and finance sector at the moment, but warns that European financial sector workers are not relishing the challenge of responding.

Barry points out that it is more important than ever to retain and engage talented staff, with the current uncertainties in this sector and recent job cuts.

He believes that this can only be achieved through strong, values-driven leadership at all levels.

Finance sector managers must be prepared to take this leadership challenge personally and drive engagement and inspire employees through their own convictions and beliefs.

"Our research paints a picture of unhappy, but functioning, bankers or brokers working hard for high salaries, who are essentially unfulfilled. This can be because their personal motivations and values are not aligned with those of the organisation,” Barry concludes.

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