British Businesses Face Low Employee Morale And Productivity, Celonis research finds

• 81% of British businesses are struggling with low employee morale, in part due to workers feeling overstretched

• Over half of business leaders (54%) expect government support for innovation as Government continues AI Action Plan push

• Leaders are upskilling employees (51%) and offering hybrid work (46%) to retain top talent, with Millennials now seen as the most productive workers

LONDON, 15 April 2025: As the UK government continues to implement its AI Opportunities Action Plan, British business leaders are pinning their hopes on technological innovation alongside HR strategies, such as offering hybrid work, to boost employee morale and productivity, according to research by Celonis, the global leader in Process Mining and Process Intelligence.

The findings, based on a survey of 500 UK business leaders, show that 81% of businesses are struggling with low employee morale, and more than a quarter (27%) of leaders find employee stress and burnout is holding back productivity, with the most common cause being workers feeling overstretched due to a lack of time to manage their tasks. An issue that could be eased through AI-powered automation. 

When asked what business leaders believe can help employees be more productive in the longer term, the most popular choice amongst business leaders was the implementation of AI-led technologies, services and solutions (46%). The top choice for a solution to drive economic growth was government support for technological innovation, chosen by more than half (54%) of business leaders. In the short term, business leaders are using HR strategies to boost morale and drive growth over the next 12 months, with 51% investing in upskilling employees and 46% offering hybrid work to retain valued workers. 

For many workers however, the key issue holding their productivity back is technology, with 46% of senior decision makers spending more than two hours per week ensuring that automated processes are actually working. 

Organisations must however remember that AI is only as good as the data that goes into it. To close the gap between AI’s promise and its performance, businesses need to apply Process Intelligence to provide the data and context needed for AI to automate processes effectively and deliver both a productivity boost and ease employee workloads.

Rupal Karia, Country Leader UKI & MEA at Celonis commented, “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. 

“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. The government’s efforts to ease AI adoption are in tune with business leaders who are optimistic that government support can help implement AI-led technologies to boost productivity and reduce frustration among their workers. Both must understand that without business context, something Process Intelligence provides, AI lacks the necessary understanding to be truly game changing.”

Interestingly, the research also found that, contrary to stereotypes around the generation, Millennial workers aged 31-40 are seen to be the most productive in the workplace, with research finding the age group to have the most experience and enthusiasm for AI. This suggests that increased usage of AI tools could support employees in other age groups to match their millennial colleagues’ hustle. 

These findings build on Celonis research findings published in November, which showed that 87% of businesses feel their productivity is being held back, with most feeling that AI will drive more economic growth than lower taxes or less regulation. See the full Business Productivity Report here. 

Notes to Editor

Research conducted 29th August-6th September 2024. Findings based on a survey of 500 UK business decision makers at organisations with 250 or more employees. Research conducted by Opinium on behalf of Celonis.

About Celonis

Celonis makes processes work for people, companies, and the planet. The Celonis Process Intelligence Platform uses industry-leading process mining and AI technology and augments it with business context to give customers a living digital twin of their business operation. It’s system-agnostic, without bias, and provides everyone with a common language for understanding and improving businesses. Celonis enables its customers to continuously realise significant value across the top, bottom, and green line.

 Celonis is headquartered in Munich, Germany, and New York City, USA, with more than 20 offices worldwide.

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