Researchers from the University of Wolverhampton have found that employees who trust their bosses are less bothered by pay cuts.
By looking at how much each employee trusted the managers of the company they worked for, researchers found that those who consider that managers kept their promises and treated workers fairly are less affected by pay cuts in terms of their overall job satisfaction.
They also found that this effect was more marked during the recession than in previous times of economic growth.
Dr Wen Wang, who led the study, said: “A pay cut at a high trust workplace has no effect on labour productivity and the quality of work produced during recession. High trust in management can link, through job satisfaction, to reduced sick leave – which reportedly cost the UK economies £12.2 billion in 2004 – and staff turnover rate during economic boom.”