Amid growing financial pressures, employers continue to focus on improving efficiency and customer service - top priorities for surviving a tough economy. They also are sensing the effects of the current environment on workplace stress, retention and engagement.

The findings are part of "Managing Your Workforce Through the Downturn," a Towers Perrin survey of more than 100 HR and business executives in the United States. Conducted during June and July of 2009, the online survey focused on the impact the recession has had on workforce practices and how organizations are making adjustments to meet current challenges.

A closer look at these survey findings indicates the broader impact of the downturn on workers:

* Employee stress - Seventy-three percent of HR and business executives say that employee burnout has increased. With fewer people doing the same amount or more work due to staff cutbacks, this finding comes as little surprise.

* Retention - Employee retention is at an all-time high. The latest Labor Department statistics show that the number of people who voluntarily left their jobs in July 2009 dropped to 1.7 million, compared to 2.6 million a year earlier. As both top talent and poor performers continue to stay the course, this finding is good and bad news for employers. 

* Engagement - Management engagement levels are on the rise, but overall employee engagement remains low. To address these challenges, employers are placing renewed emphasis on communication, performance management and initiatives aimed at strengthening line of sight - despite the high marks they give themselves in each of these areas.

Along these lines, companies are redefining leadership's role in communicating and connecting to employees in meaningful ways. This is no small measure since senior leadership has a significant impact on employee engagement, according to Towers Perrin's Global Workforce Study, a survey of nearly 90,000 employees in 18 countries. In fact, the top engagement driver globally and in the United States is employees' belief that management cares about their well-being.

To ensure that their employees stay engaged and focused, particularly during the current environment, senior leaders must spell out how the organization is responding to business challenges and why it is making specific business decisions. Equally important, employers must find ways to embed a concern for employee well-being into their culture and core values through their benefit programs, work/life balance initiatives and manager-employee communications.

In addition, to help workers make the link between their day-to-day activities and company performance, organizations must consistently share their business results with employees, as well as their short- and long-term objectives - and build them into specific and measurable goals. These actions also help clarify roles and responsibilities.

In terms of top challenges organizations will face as the economy rebounds, our survey findings indicate the following concerns:

* Pressure to increase compensation - Given that many employers initiated pay freezes, furloughs, and even wage and bonus reductions to help mitigate economic pressures, pressure for increased compensation could surface when the labor market improves.

* Gaps in leadership credibility - Coming out of the downturn, employers must assess how their leaders performed under fire and determine which skills managers must develop to drive future organizational success.

* Retention of key talent - Key talent will undoubtedly look for opportunities to improve their skills and expand their knowledge when the economy recovers. To retain them, organizations must provide targeted development programs, as well as special or stretch assignments, and empower decision making.

The good news for employers is that the actions they are taking to survive the current downturn can drive performance. Rather than viewing these solutions as short-term fixes, organizations should consider them strategies for yielding long-term results.

Eric McMurray is the managing principal at Towers Perrin.