Changes and job cuts led to slump in staff spirits, Bell says
Restructuring at Misys' general insurance businesses led to low morale, chief executive Phillip Bell admitted.
He said efforts to unite Misys Financial Systems (MFS) and Misys Insurance Management (MIM) in May generated staff worries about job security within the organisations. He said the changes would ultimately benefit the organisation and its customers.
Bell launched moves to merge the boards of the two operations shortly after taking responsibility for general insurance in May this year.
Directorships were cut from ten to six and about 23 people were made redundant across the organisations, after up to 40 jobs were put at risk.
Morale had fallen during a consultation period over the job losses.
Bell said: "It was hardly surprising there was a degree of uncertainty and low morale during the 30-day period.
"There was low morale for those people who were leaving."
All those who left had done so by agreement after signing compromise agreements, rather than simple redundancy packages, he said.
Worst hit were staff at the group's Peterborough offices.
Bell said the reason for joining Misys' two general insurance entities was to prepare for FSA regulation in 2004.
Benefits to brokers included better alignment between MFS IT systems and the services provided by MIM, previously known as Countrywide Insurance Marketing. Insurers would also benefit, being able to deal with a single entity at director level.
The changes enabled senior staff to take on business development roles.
