UK employees are working harder as a result of the recession, but are increasingly unhappy about doing so, staying in their roles due to fear of the weakened jobs market. Red flags are being raised by management consultancy Hay Group, which predicts an exodus of talent from companies by disgruntled staff once the economy starts to recover. The Loyalty Deficit study by Hay Group reveals that 65% of employees are currently working over contracted hours, and 36% have increased the amount of time they work over the last 12 months. Russell Hobby, associate director at Hay Group, described the situation as 'Dunkirk spirit' among teams battling through the recession. But, he said, 'managers should beware of superficial engagement'. 'Those companies solely focused on the bottom line during the recession could easily fail to notice the debt they have built up with employees for their loyalty during tough times. They risk falling behind those few organisations that have bucked the trend and successfully kept engagement high,' he added.