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This is true at my wife's job. The company was once privately owned and offered a lot of nice perks and bonuses. Nothing really expensive, but things that made for a nice work enviroment: production or performance contests that gave some recognition and reward to top performers, usually one a month every department would have an extended lunch for some sort of party or social event, generous bonuses at Christmas, a few big company parties every year. The company had a very good retention rate and many long term workers.
Then they went corporate. All the little perks were gradually cut back and eliminated. Merit raises no longer exist, now you get a bare bones cost of living raise no matter how good or poor your performance is. The company has put in place more "policies" that regulate some of the stupidest and most minute details of the day. Salaried workers are expected to put more and more time in for no additional compensation.
And what's the result? The turn over rate is much higher, meaning the comany has to spend additional dollars training the new hires that are constantly replacing the ones who leave. And those new, raw employees are not nearly as efficient at getting work done as the people they are replacing. Plus many of the workers who are there now have a much lower morale and avoid doing anything extra or above and beyond because they know two things. One, they won't be rewarded in any fashion for their extra effort. Two, the company will start to expect teh extra effort and make it part of their jobs without adding compensation for the additonal responsibilities. People cut corners and do the minimum because they feel the company is the enemy. Where as before the company had a real family feel and many of the employees were very dedicated.
If you treat your employees like crap, the best you can expect is a minimal effort. Too many companies, especailly corporate ones, lose sight of this very basic fact.
That is EXACTLY what happened at my job, after the takeover. I'm the only person left with more than 3 years experience, and the corporate types are always bemoaning why the office has dropped to the dregs in efficiency. BECAUSE THERE'S NOBODY LEFT THAT KNOWS HOW TO DO THE JOB! :doh: