|
By Sara Jameson
According to recent Mercer research one in two US employees is looking to leave or is checked out on the job. This can of course lead to financial detriment for companies as the potential for spiraling retention costs as well as stalled employee productivity pose serious business threats.
That message comes through loud and clear in Mercer’s new What’s Working™ survey, conducted over the past two quarters among nearly 30,000 workers in 17 countries, including 2,400 workers in the US.
Nearly one in three (32%) US workers is seriously considering leaving his or her organization at the present time, up sharply from 23% in 2005. Meanwhile, another 21% are not looking to leave but view their employers unfavorably and have rock-bottom scores on key measures of engagement, a term that describes a combination of an employee’s loyalty, commitment and motivation.
“The business consequences of this erosion in employee sentiment are significant, and clearly the issue goes far beyond retention,” said Mindy Fox, a Senior Partner at Mercer and the firm’s US Region Leader. “Diminished loyalty and widespread apathy can undermine business performance, particularly as companies increasingly look to their workforces to drive productivity gains and spur innovation.”
Employee concerns about work are pervasive, reflecting an evolving employment deal that they have seen as a series of takeaways, plus further cuts made during economic tough times:
- Only 43% of US employees believe they are doing enough to financially prepare for retirement – down from 47% in 2005, and just 41% believe their employers are doing enough to help them prepare, up slightly from 38%.
- Sixty-eight percent of employees rate their overall benefits program as good or very good, down from 76% in 2005, while 59% say they are satisfied with their health care benefits, down from 66%.
- Base pay is the most important element of the employment deal, by a wide margin, but US workers show lower satisfaction with base pay (53% satisfied, down from 58% in 2005).
- Despite improvements, scores for career development and performance management remain low. Just 42% of employees today agree that promotions go to the most qualified employees in their organization, up from 29% in 2005, and 46% agree that their organization does an adequate job of matching pay to performance, up from 33%.
As a result, overall scores are down consistently across key engagement measures while intention to leave is up across all employee segments, with the youngest workers most likely to be eyeing a departure – 40% of employees age 25–34 and 44% of employees 24 and younger.
According to Ms. Fox, an effective employment deal includes both how the deal is defined and how it is delivered. “Employees see a ‘disconnect’ between what employers are promising and what they are delivering,” she said. “Organizations should re-examine their deals – both the traditional and non-traditional elements – then support them with effective administration and consistent, authentic communication that fosters a sense of belonging and helps employees make better rewards choices and career decisions.”
Jason Jeffay, a Senior Partner and Global Leader of Mercer’s talent management consulting, said, “Without question, employers face significant challenges in raising engagement but they can be overcome by making the right trade-offs and investments in the employment deal, while enhancing leadership skills and managerial effectiveness on the front line.”
Mercer’s survey also drives home the importance of knowing what is going on inside employee minds, which changes over time. “Often, a change in mood or sentiment is not spotted until it becomes a full-blown issue,” said Pete Foley, PhD, a Principal at Mercer and employee research consultant. “Employers must periodically take the pulse of their own employees to identify their specific areas of concern and link employee opinion to outcomes such as productivity and retention.”
Note: Mercer defines engagement as a psychological state in which employees feel a vested interest in the company’s success and are both willing and motivated to perform to levels that exceed the stated job requirements. It reflects how employees feel about the overall work experience – the organization, its leaders, the work environment, and the recognition and rewards they receive for their efforts.
Published by myITview.com
Only registered users can write comments.
Please login or register. |
