Negative working atmospheres created by bosses are costing companies in the UK, it has been claimed.

According to research produced by the Hay Group, the issue is costing the financial services industry alone in the region of £8.5 billion a year in lost profits.

The findings were based on a gap analysis of more than 580 workers’ ideal working climate, compared to the environment they actually inhabit.

It was found that 59 per cent of managers fail to bring about a positive working climate, with 43 per cent creating a de-motivating office atmosphere and 16 per cent only succeeding in generating a neutral working space.

"Up to 30 per cent of business performance is dependent on a motivational working climate. And in times of economic uncertainty, maximising staff motivation and discretionary effort will be more critical than ever," stated Chris Watkin, UK head of talent management at the Hay Group.

With offices in 47 countries across the world, the Hay Group is a global management consultancy firm.