Mood ‘dampened’ | As Deloitte moves to slash bonuses & promotions… how can HR protect morale?

Deloitte UK is set to slash bonuses, promote fewer staff, and scale back hiring plans after failing to hit financial targets.

In a company-wide email sent on Tuesday, CEO and Senior Partner Richard Houston informed employees in Deloitte's technology & transformation consulting division that they would only earn an average of 80% of their annual bonuses. As first reported by The Financial Times, partners in the division will also have their yearly reward trimmed.

Employees are understandably unhappy and have complained about the impact on morale and motivation. So, why is Deloitte moving to curb bonuses and promotions? And with many employers similarly struggling to hit performance targets as tough economic conditions prevail, how can HR teams protect morale when news on reward and remuneration ain't all that rosy?

Why is Deloitte slashing bonuses & promotion plans?

In the memo, Houston explained to T&T employees that faltering financial performance was to blame for the reduction in annual rewards.