UK businesses are continuing to face challenges related to employee morale and productivity, with 81 percent of organisations experiencing low morale among staff, according to new research.
According to a study from from data processing company Celonis, 27 percent of 500 UK business leaders surveyed report that stress and burnout are directly affecting productivity levels. Employees often feel overstretched, citing a lack of time to manage tasks as a major cause of stress. Business leaders point to AI-powered automation as a potential way to address this issue.
In response to productivity concerns, many leaders are combining technological solutions with human resources strategies. In the short term, 51 percent of businesses are investing in upskilling and 46 percent are offering hybrid working arrangements to retain staff and improve morale.
When asked about long-term solutions, 46 percent of respondents believe that implementing AI-led technologies, services and solutions will have the greatest impact on productivity. Additionally, 54 percent see government support for technological innovation as the best way to drive economic growth.
Automation hindered by technical inefficiencies
Despite the appetite for digital solutions, 46 percent of senior decision makers report spending more than two hours each week ensuring that automated systems are functioning properly. The findings suggest that while automation holds potential, it is not currently operating at full efficiency within many organisations.
Celonis notes that AI technology requires high-quality data and appropriate business context to perform reliably. The application of Process Intelligence can support automation by providing structured data and a clear understanding of workflow patterns, helping to close the gap between AI’s potential and its actual impact.
Rupal Karia, Country Leader UKI & MEA at Celonis, stated that ineffective technology and employee burnout are creating a difficult environment for growth. She also noted the divide between organisations pushing for a full return to office and those adopting hybrid work models to support staff retention.
AI’s potential to improve morale
Karia added, “Businesses are facing an uphill struggle to drive growth and regain productivity, thanks to ineffective technology and employees feeling burnt out. We have also seen a divide emerge as many major employers have demanded a full return to office, a position at odds with nearly half of businesses seeking to retain staff by offering hybrid work.”
She added that the government’s AI Opportunities Action Plan aligns with the views of business leaders and can support the wider adoption of AI technologies.
“The good news is that leaders can tackle both issues through technological innovations like Process Intelligence and AI which can automate repetitive or mundane tasks and free up employee time to focus on more valuable activities,” Karia said. “Both must understand that without business context, something Process Intelligence provides, AI lacks the necessary understanding to be truly game changing.”
Millennials lead in AI enthusiasm and workplace productivity
The survey also examined differences in productivity across age groups. It found that millennial employees, aged between 31 and 40, are seen as the most productive. The report attributes this to the group’s higher level of experience combined with and interest in AI tools.
These findings suggest that expanding AI training and support to employees across all age groups could help level productivity and engagement. The enthusiasm millennials show for AI may offer a model for how other generations can benefit from these technologies with the right support and infrastructure in place.
Alessandra Pacelli is a journalist and author contributing to HRreview, where she covers topics including labour market trends, employment costs, and workplace issues.
- Alessandra Pacelli
- Alessandra Pacelli
- Alessandra Pacelli
- Alessandra Pacelli
