Survey report Summer 2010

Employee outlook
Year review

This report has been analysed and written by the Public Sector Consulting Team at YouGov.

Contents

Foreword: setting the context Introduction Key findings 1 Job pressure, workload and control 2 Job satisfaction 3 Job security 4 Worklife balance 5 Attitudes to senior management 6 Job-seeking Conclusions 2
4
5
7
11
16
19
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27
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Employee outlook: Year review

Foreword: setting the context

This report brings together findings from the CIPDs quarterly Employee Outlook surveys from May 2009 to February 2010, providing a narrative on how working life and employee perceptions have been shaped by the dramatic events over the year. The report is aimed at HR, senior managers and line managers in both public and private sector organisations, as well as policy-makers all concerned with UK organisation productivity and performance. We believe the timing of this 2009/10 report is particularly helpful because we can draw trend data, evidence and learning from private sector uncertainty over the past year, which can now be usefully applied to the mounting public sector challenges and seismic changes that will be experienced for many months to come. From an economic and employment perspective, the last 12 months have witnessed a huge amount of uncertainty and change. In March 2009 there was much concern over the health of the financial system and the world economy, with many countries in recession. Unemployment was climbing in most developed economies, with the CIPD predicting that it would peak at 3 million in the UK. Over the next six months there was a dramatic stock market recovery as governments around the world pumped unprecedented amounts of money into the financial system and subsequently there was a gradual return to economic growth in the US and most parts of Europe. The UK finally crept out of recession in the last quarter of 2009. Rising unemployment also started to level out in the second half of 2009 in the US and some parts of Europe, including the UK, with the CIPDs forecast on peak unemployment revised down to 2.8 million. However, there has been a lack of sustained confidence in a robust world recovery, with some economists predicting a double-dip recession as governments start to try to cut their deficits and reduce public spending. In our

most recent quarterly surveys, we are clearly seeing a shift from private sector uncertainty to public sector difficulties with deterioration in public sector job satisfaction, job security, pay and perceptions of senior leaders. This again reinforces the importance of public sector employers learning from private sector experiences. So, what are the key findings? Against this turbulent backdrop it is not surprising that there have been some significant shifts in employee attitudes towards their work, their management and their organisation. A key trend has been falling job satisfaction over the four quarters, as well as a gradual increase in pressure at work. There has also been an increase in dissatisfaction with senior managers, particularly in terms of trust and the extent to which they consult employees over important decisions. In fact, perceptions of both senior and line managers are shown to be particularly important and closely linked to employees job satisfaction. In addition, the data already starts to show how redundancies and job security concerns have spread from the private sector to the public sector over the last 12 months. Why should employers be interested in these findings and what can they do to respond to current and future challenges? It is always important for employers to be aware of employee perceptions and issues that might be impacting upon their well-being and productivity. However, we feel in this particularly uncertain climate it is even more crucial. This research highlights the importance of strong and consultative leadership, good people management and engagement themes that run throughout numerous CIPD research streams.

Employee outlook: Year review

Our talent insights, exploring the importance of talent management in difficult times, emphasise the need for leaders who can lead and motivate in the good and bad times and the importance of values-based and ethical leadership. Furthermore, our Next Generation HR research clearly spells out that we must also ensure through our talent activities that we are building leadership for the organisation challenges of tomorrow, not just replicating todays team more efficiently. It is also important to mention the parallels with our longitudinal Shaping the Future research, where enablers of sustainable organisation performance link to the themes of leadership, engagement and organisation development. Some of the broader insights around the importance of creating shared purpose, harnessing employees locus of engagement and developing, where appropriate, distributed leadership also build upon this reports findings.

Our series on building productive public sector workplaces and, in particular, our latest paper on developing positive employee engagement and employee relations also support the messages in this research. CIPD research into employee engagement and the recent government-commissioned MacLeod review highlight the link between increases in employee engagement and business performance. Engaged employees take less time off sick, are less likely to quit and are more likely to recommend their organisation as a good place to work. It is in employers (and the Governments) interest to understand what is happening on the ground in the workplace because only then can they identify potential obstacles and opportunities for improving employee engagement and, ultimately, productivity. Clearly, with impending public sector cuts, developing high engagement and productivity are more important than ever for public sector employers and, more widely, the UK economy.

Employee outlook: Year review

Introduction

This report is aimed at HR professionals, senior management and line managers with a keen interest in the UK workforce, key aspects of working life and how employees perceptions have been shaped by the economic climate. It is also likely to be of interest to policy-makers trying to understand the changing employee reality of work to help them develop public policy responses to improve employment practice, employee engagement and well-being and, ultimately, productivity. On behalf of the CIPD, YouGov undertook a quarterly tracking study in 2009 the surveys were conducted online using the YouGov Plc panel of over 280,000 individuals who have agreed to take part in surveys. Every quarter a representative sample of over 2,000 UK employees were surveyed and the data was benchmarked by sector (that is, private, public, voluntary), business type (standard industrial classifications), region and size of organisation. The study covered issues concerning the impact of the recession, the extent to which employees felt consulted on key decisions, their level of engagement with the strategic objectives of their employer and their satisfaction with their current job. In addition to this, each survey had topical questions. Four surveys were undertaken in 2009:
spring fieldwork carried out 2025 February

Within this report each survey is referred to by the season in which it was conducted (as shown above). As mentioned earlier, topical questions ran throughout the year, therefore not all questions could be analysed over the year where this is the case it is made clear in the report. The report begins by providing an overview of key findings from each section and then goes on to examine attitudes and feelings towards work, starting with job pressure, workload and sense of control over the job. The next two sections look at job satisfaction and job security throughout the year and review how this changed during 2009. Section 4 looks at worklife balance among UK employees and section 5 examines the UK workforces feelings towards senior management. Finally, section 6 looks at the jobseeking plans of UK employees and how this has changed over the course of the year. The report concludes by taking an overview of working life in 2009 and the resulting implications for employers and interested parties.

2009
summer fieldwork carried out 1723 June 2009 autumn fieldwork carried out 29 September

7 October 2009
winter fieldwork carried out 1421 December

2009.

Employee outlook: Year review

Key findings

This section of the report highlights the key findings from each section. Attitudes and feelings towards work The proportion of employees feeling under excessive pressure either every day or once or twice a week has increased over the year. Public sector employees were most likely to say they were under excessive pressure, followed by those in the private and the voluntary sector. Those reporting that they are most frequently under excessive pressure at work are less likely to express satisfaction with their job. Levels of workload remained fairly consistent over the year, with the majority of UK employees stating their workload was about right. Public sector employees were more likely than those in the private sector to report that their workload was too much, with voluntary sector staff least likely to say this. However, private sector employees were significantly more likely to feel in control of their job than public sector employees. Job satisfaction Overall job satisfaction declined during the course of 2009, with the largest fall occurring between summer and autumn. Voluntary sector employees are the only group for whom satisfaction was higher at the end of the year compared with the start, despite fluctuations during the intermittent seasons. Experiencing excessive pressure at work at least once or twice a week and redundancies are closely related and both lead to a decrease in job satisfaction. Employees who are satisfied with their job are consistently more likely to state that their manager always or usually consults them than those who are dissatisfied with their job. The more a manager consults with their staff, the greater the resulting level of job satisfaction.

The largest driving factors of job satisfaction relate to providing employees with opportunities to feed views upwards and making them feel that their work counts. Job security There was very little change in the overall proportion of respondents saying that they were very likely or likely to lose their job. However, the research shows an erosion in confidence in job security among public sector employees. In spring, only 8% of public sector staff stated that they felt likely or very likely to lose their job. By winter this figure had almost doubled. This erosion is only likely to get worse as public sector cost reductions start to be felt. Combining the data for the whole year, over twothirds of employees in businesses that have made redundancies do not have any concerns over their job security. Worklife balance Employees classification of their worklife balance significantly improved over the course of the year, with figures being at their highest in summer 2009 (61%). However, there was a decrease in perceived organisational support for worklife balance. In spring, 36% of UK employees agreed that their organisation provided them with support to help manage their worklife balance; by winter this figure had decreased significantly to 31%. Loyalty towards organisations In spring 2009, over three-quarters (76%) of employees said they had a lot or some loyalty towards their organisation and a quarter (24%) said they had no or little loyalty to their organisation. The more senior the employee, the more loyalty they felt towards their organisation.

Employee outlook: Year review

In autumn, 55% of UK employees said they would be very likely or likely to recommend their organisation as an employer. In winter this figure dropped significantly to 51%. Senior management Since spring 2009, the percentage of employees who disagree that their directors and senior managers consult them about important decisions has increased significantly from 48% to 52%.

Job-seeking The proportion of employees who would ideally like to change their jobs has increased from 34% in spring 2009 to 37% in winter 2010, peaking during the year in autumn 2009 at 40%. Employees aged 18 to 24 seemed more likely to want to move than other age groups, with 73% indicating this in winter 2009. Forty per cent of UK employees who would ideally like

Confidence and trust in senior managers have generally been low since spring 2009. However, there is a recurring pattern throughout the year, in that the smaller the organisation, the more trust employees have.

to move within the next year agreed that they are less trusting of their managers compared with 13% who would not move. Those considering moving are just as uncertain about

The number of employees who feel their manager is always or usually open and honest has decreased significantly since spring 2009.

finding work elsewhere as those who are not considering moving. In spring 2009, 39% of UK employees wanting to

In winter 2009, over a third (36%) of UK employees felt they received only a limited amount of information and one in seven said they heard very little information about what is going on. Employees working within the voluntary sector seem far more satisfied with the opportunities provided to them to voice their issues and ideas upwards than those working within the private and public sectors.

change jobs were very optimistic or optimistic about being able to. This figure dropped significantly to 33% by winter.

Employee outlook: Year review

1 Job pressure, workload and

control

This first section of the report looks at how employees feel about their work are they stressed, what does their work mean to them and how do they approach it? This section also looks at how the economic downturn has affected employees, in particular their workload. Excessive pressure A certain level of pressure in the workplace is essential as it helps people to concentrate and it increases motivation. However, when the pressure people are under exceeds their ability to cope, in other words stress, it becomes a negative rather than a positive force in the workplace. Stress is linked to conditions such as anxiety and depression, as well as heart disease. It is also one of the biggest causes of absence. Stressed people find it difficult to concentrate or to juggle a number of different tasks and they are likely to have less patience with work colleagues, as well as customers and clients. The survey asked respondents to say how frequently they felt under excessive pressure at work to provide a benchmark over the year. Among the three sectors, those working within the voluntary sector seemed to be facing the least The research indicates that levels of pressure varied among sectors, with public sector employees significantly more likely than those in the private sector to feel under excessive pressure every day or once or twice a week. In spring 2009, 37% of private sector employees said they felt under excessive pressure every day or once or twice a week. By winter 2009, this figure increased significantly to 41% for the private sector, while public sector figures remained the same. In spring 2009, 38% of UK employees felt under excessive pressure once or twice a week or more and by winter this figure had increased to 41%. While we have identified how the UK workforce as a whole is feeling, how do the stress levels break down? At a glance, Figure 1 indicates that pressure levels slightly increased over 2009.

Figure 1: Pressure in the workplace (%) Winter

(n = 2,041)
Autumn
(n = 2,057)

14

27

24

24

12

13

29

23

21

13

Summer
(n = 3,337)
Spring
(n = 3,171)

14

27

25

21

13

12
Every day

26

26
Once or twice a week

23

13

Once or twice a month Never

Base: all UK employees

Less frequently than once a month

Employee outlook: Year review

pressure and, similar to public sector employees, the level of pressure they faced remained fairly consistent over the year. There was also an indication that employees working in large organisations experienced excessive pressure on a more frequent basis than employees working within micro or small organisations. There also seemed to be a significant shift in pressure faced by younger employees. From autumn 2009, 5% of

1824-year-olds said they felt under excessive pressure every day in autumn but by winter this figure had increased to 15%. Workload and control Levels of workload remained fairly consistent over 2009, with the majority of UK employees stating their workload was about right, as shown in Figure 3. By winter, one in ten (9%) said their workload was too little and 29% said it was too much.

Figure 2: Who is feeling the pressure? (%)

Private sector 12 14 13 14 13 Public sector 16 15 14 10 Voluntary sector 8 10 9

25

26

29

24

31

30

34

30

26

31

22

27

26

25

23

24

24

25

26

26

29

31

25

23

23

22

21

23

21

18 11

17 9

22

24

17

28

38

14

13

13

13

10

4 Winter Spring Summer Autumn Winter Spring Summer Autumn Winter Spring Summer Autumn (n = 2,230) (n = 2,223)(n = 1,464)(n = 1,459) (n = 713) (n = 721) (n = 395) (n = 381) (n = 221) (n = 206) (n = 108) (n = 105) Every day Once or twice a week Once or twice a month Less than once a month Never

11

13

16

Figure 3: Personal workload (summer to winter 2009) (%)

All UK Employees 10 10 9 11 Private sector 11 10 6 Public sector 8 7 7 Voluntary sector 5 3

61

60

61

36

60

61

57

55

54

55

70

73

27

29

29

25

28

28

35

36

38

37

23

22

2 2 1 1 1 1 1 1 1 1 1 1 Summer Autumn Winter Summer Autumn Winter Summer Autumn Winter Summer Autumn Winter (n = 3,337) (n = 2,057)(n = 2,041)(n = 2,223) (n = 1,464)(n = 1,459) (n = 721) (n = 395) (n = 381) (n = 206) (n = 108) (n = 105) Too little About right Too much Dont know

Employee outlook: Year review

With an increase in pressure over the year, it was perhaps not surprising that a third of employees (30%) aged 1824 felt their workload was too much. While opinions were similar among men and women in autumn, by winter this had changed men were significantly more likely than women to state that their workload was too much (32% compared with 26%). Workload remained fairly similar for those in the private and public sectors, with shifts seeming far more prevalent among the voluntary sector from spring to winter the percentage of employees stating their workload was too much decreased significantly (37% down to 22%). There also seemed to be a relationship between length of service and personal workload the longer an employee worked for an organisation, the more likely they were to say that their workload was too much in winter 2009. A quarter (23%) of employees who had been with their organisation for up to six months said their workload was too much, compared with 33% of employees who had been with their organisation for more than 20 years. Similar to workload, the level of control employees felt they had over the way they do their work remained

consistent over the spring and summer, with the majority (77%) of UK employees feeling they had a great deal or fair amount of control. Private sector employees were significantly more likely to feel in control of their job than public sector employees; however, by summer it was those in the voluntary sector who seemed to feel most in control. Employees working for smaller organisations seemed to have more control compared with those working for larger organisations in summer 2009 48% of UK employees working in micro businesses stated they had a great deal of control compared with 17% working in large businesses. How worthwhile is my job? We asked a number of questions to examine this issue. Figure 5 (on page 10) displays the co-efficient of each statement showing how closely correlated each factor is with those who think their job is worthwhile. The nearer the number to 1, the better the correlation or association between that item and respondents saying their job is worthwhile.

Figure 4: Employee control % of employees saying they had a great deal/fair amount of control

All UK employees

77 75 79 77 67 70 85 77 0 Summer 20 Spring 40
Percentage

Private sector firm or company

Public sector/other

Charity/voluntary sector

60

80

100

Base: All UK employees (spring: n = 3,171; summer: n = 3,337), private sector (spring: n = 2,230; summer: n = 2,223), public sector (spring: n = 713; summer: n = 721), charity/voluntary sector (spring: n = 221; summer: n = 206).

Employee outlook: Year review

Figure 5: A worthwhile job (spring 2009)

I avoid working my standard hours whenever possible. I often think about other things when performing my job. I often feel emotionally detached from my job. I stay until the job is done. Performing my job is so absorbing I forget about everything else. I get excited when I perform well in my job. The work I do in my job is very important to me. The work I do in my job is very meaningful.

0.2 0.3 0.4 0.3 0.4 0.5 0.7 0.8

1.0

0.8

0.6

0.4

0.2

0.2

0.4

0.6

0.8

1.0

Pearson correlation factor

We can see that the more likely employees are to agree that their job is worthwhile, the more likely they are to think their job is meaningful. Some factors have a negative correlation, which means as one increases the other decreases for example, employees who think their job is worthwhile are more likely to disagree with the statement that they feel emotionally detached from their job. Staying until the job is done had the lowest positive correlation and avoiding working more than my standard hours had a negative correlation. Although its not certain, this could be an indication that while employees feel their job is worthwhile, and are willing to put in extra hours, they dont feel that this needs to be the norm.

While we have identified many aspects of employee life and how things make employees feel, the main indicator for how employees truly feel is their satisfaction. Though this was touched upon in this section, the next section will examine job satisfaction in greater detail.

10

Employee outlook: Year review

2 Job satisfaction

In this section we look at job satisfaction and how this changed during the year. Job satisfaction is important as it is one of the drivers of employee engagement and is a good benchmark indicator of employees views towards their work. We look at the impact that the economic climate, pressure at work and job security has had on job satisfaction and the connection between satisfaction and an employees relationship with their manager.

Trends in job satisfaction Overall job satisfaction declined significantly during the course of 2009, with the largest fall occurring between summer and autumn. The surveys suggest that if you want the highest level of job satisfaction, be your own boss. The data have shown consistently that sole traders have the most job satisfaction. Despite recording the highest figures in each

Figure 6: Satisfaction with job during 2009 (%)

60 50 48 40 30 20 10 0 46 37 36

Spring

Summer

Autumn

Winter

Figure 6 plots net satisfaction scores by season. Net satisfaction scores are calculated by subtracting the percentage who say they are dissatisfied from the percentage who say they are satisfied. Net scores measure the strength of the direction of feeling and therefore give a more accurate assessment than simple satisfaction scores.

Table 1: Job satisfaction by business type and sector (net satisfaction scores) (%)

Spring Sole trader Micro business Small business Medium business Large business Private sector Public sector Third sector 71 58 45 40 38 46 43 53

Summer 72 60 46 50 39 46 45 60

Autumn 64 49 43 37 26 35 39 57

Winter 61 48 33 29 29 34 36 56

Employee outlook: Year review

11

season, satisfaction among sole traders declined during the course of the year. Employees in large businesses have the lowest levels of satisfaction, although it increased slightly during the winter from its autumn low. Third sector employees are the only group for whom satisfaction was higher at the end of the year compared with the start, despite peaking in summer 2009 and declining slowly over the following seasons. In later sections it is identified that having your voice heard is an important factor in job satisfaction interestingly, voluntary sector employees are more likely than others to be provided with opportunities to express their views. While we have recognised the shifts in job satisfaction over 2009 and where they occurred, are there any issues in the wider employment market that could explain them? Job satisfaction in the wider context Figure 7 shows the relationship between job satisfaction and a number of important variables that place satisfaction in the context of the pressure people feel, their worklife balance and redundancies (as a proxy for the economic climate).

Figure 7 shows that experiencing excessive pressure at work at least once or twice a week and the employer making redundancies are closely related. As both of these lines have risen, the level of job satisfaction has decreased. The relationship between job satisfaction and feeling under excessive pressure at work at least once or twice a week is also strong, but not as strong as with redundancies. Interestingly, analysis of four seasons data does not produce a significant relationship between job satisfaction and worklife balance. This would suggest that respondents do not make a connection between having an imbalance between work and home life and overall job satisfaction. Managers and job satisfaction Other research by the CIPD has identified two important ways managers can increase employee engagement. This includes the extent to which managers consult with their employees and the openness and honesty of their manager. These two variables show a good link with job satisfaction (Figure 8).

Figure 7: Relationship between job satisfaction, pressure, worklife balance and whether the organisation has made redundancies (%)
100 90 80 70 60 50 40 30 20 10 0 Spring Job satisfaction Summer Satisfaction with worklife balance Autumn Excessive pressure Winter Has made redundancies 38 56 64 65 58 61 57 57 59

41

42 29

41 30

27 22

Base: All UK employees (spring: n = 3,171; summer: n = 3,337; autumn: n = 2,057; winter: n = 2,041)

12

Employee outlook: Year review

Figure 8: Manager consults on important issues by whether satisfied/dissatisfied with current job (%)
100 90 80 71 70 60 50 40 30 20 10 0 Spring Satisfied with job Summer Dissatisfied with job Autumn Winter 28 24 31 24
43 46 38 45

70

69

69

Figure 8 shows the proportion that say that their manager always or usually consults with them on matters of importance plotted for those who are satisfied and dissatisfied with their job. Base: All UK employees who report to someone (spring: n = 2,562; summer: n = 2,662; autumn: n = 1,703; winter: n = 1,668)

Figure 8 shows that those who are satisfied with their job are consistently more likely to state that their manager consults with them always or usually than those who are dissatisfied with their job. For example, of all those who were satisfied with their job in spring 2009, 71% said that their manager always or usually consulted with them. For those who were dissatisfied with their job in spring 2009, the figure was only 28%. This gives a gap

(illustrated by the vertical arrows) of 43 percentage points. The gap has stayed consistent through the year and shows that the more a manager consults with their staff, the greater the resulting level of job satisfaction. The pattern is similar when looking at the impact of honesty and openness on job satisfaction, as Figure 9 shows.

Figure 9: Manager is usually/always open and honest by satisfaction with current job (%)
100 90 80 70 60
43 44 38 44

78

75

75

72

50 40 30 20 10 0 Spring Satisfied with job Summer Dissatisfied with job Autumn 35 37 31

28

Winter

Base: All UK employees who report to someone (spring: n = 2,562; summer: n = 2,662; autumn: n = 1,703; winter: n = 1,668)

Employee outlook: Year review

13

Figure 9 shows a substantial gap between those who are satisfied and those who are dissatisfied with their job in relation to the openness and honesty of their managers. Those who are satisfied are consistently far more likely to say that their manager is open and honest than those who are dissatisfied. For example the winter 2009 figure shows that there was a gap of 44 percentage points between the proportion of all those satisfied with their job who stated that their manager is always or usually honest and open with them and the corresponding proportion for those who were dissatisfied with their job. Managerial behaviour clearly seems to impact satisfaction, but is job satisfaction purely driven by it or are there other potential key drivers?

the answer to the question: How satisfied are you with your current job?2 A correlation matrix was then generated which correlated every question in the survey against satisfaction. From this the ten questions with the highest correlation were selected to be used in the model.3 Figure 10 shows the six key drivers of job satisfaction. The number next to each factor shows its relative importance. The higher the number the more important the factor is within the model. The most important factor relates to consultation and the ability for employees to feed views upwards on a range of issues that are important to them. Having your manager treat you as if your work counts and treating an employee fairly are other important factors. What comes across from the model is the extent to

What are the key drivers of job satisfaction? By undertaking key driver analysis1 it is possible to identify the drivers behind job satisfaction. This analysis combines the data from the four surveys throughout the year. For the analysis the dependent variable was set as

which managers have an important role in shaping an employees job satisfaction. The factors in the model are all things over which managers can have a direct influence. As such the research shows the things that a manager can do to increase satisfaction.

Figure 10 : Key drivers of satisfaction with job

Satisfied with opportunities to feed views upwards Makes me feel my work counts

0.249

0.182

My manager treats me fairly

0.154

I have confidence in senior managers

0.088

I trust senior managers

0.061

Senior managers treat employees with respect

0.046

1.0

2.0

3.0

Key driver analysis is a statistical technique that identifies the extent to which the results of one question are explained by the responses to other questions. The analysis involves choosing a dependent variable and identifying independent variables that explain it. The answers to this question were recorded on a five-point scale ranging from very satisfied to very dissatisfied. Those answering dont know were excluded from the analysis. The model was then run using SPSS. Various iterations of the model were run and the one having the greatest explanatory power was selected. It should be noted that although ten variables were fed into the analysis, only six are identified as having a statistically significant explanatory power. The model explains about 40% of the variability in the data. This means that there are factors outside the scope of the survey that have an important impact on job satisfaction. These factors could be the type of work done, the people around you, whether the job matches the person in relation to its scope, interest, qualifications and aspirations as well as factors that are individual to the person rather than the job. It should be noted that pay was not seen to be a statistically significant driver of job satisfaction.

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Employee outlook: Year review

Figure 11: Drivers of personal job satisfaction (spring 2009)

Amount of variety in job (0.198)

Recognition for good work/hours of work (0.178)

Opportunity to use abilities (0.158)

Freedom of using own method of working (0.133)

Chances of promotion (0.081)

Amount of responsibility given (0.073)

Job security (0.052)

Job satisfaction on a personal level By undertaking key driver analysis it was possible to look
4

The freedom to choose your own method of working was also key in driving job satisfaction, as well as opportunities provided to employees to use their abilities. Interestingly, among personal drivers, job security had less of an impact than perhaps would be expected.

specifically at personal key drivers behind job satisfaction (taken only from the spring 2009 data), which included a number of more detailed questions on job satisfaction. Figure 11 shows seven personal key drivers of satisfaction and the number next to each factor shows its relative importance. The higher the number, the more important the factor is within the model. The model shows the importance of variety in relation to work the more satisfied employees are with the amount of variety in their job, the more satisfied they are overall. However, as the model shows it is not limited to this with joint scores the recognition employees receive for the good work that they do and the hours they work were also important in driving satisfaction in spring 2009.

While it cannot be said with certainty, the possibility is that the impact of the recession had not been felt during the spring and, as later sections show, employees started recognising and feeling the impact of the economic downturn during the summer and autumn. With an eventful 2009 and a recession-hit Britain, it is more important than ever to understand how secure employees feel. The next section will look into this in more detail.

Key driver analysis is a statistical technique that identifies the extent to which the results of one question are explained by the responses to other questions. The analysis involves choosing a dependent variable and identifying independent variables that explain it. The dependent variable was How satisfied are you with your current job? and the analysis uses data from only spring 2009 with the model explaining about 55% of the variability in the data.

Employee outlook: Year review

15

3 Job security

In this section we look at job security and the impact of the economic climate on employees confidence in their ability to retain their job. This section looks at how confidence affects different sectors and the relationship between national unemployment figures and job security. Trends in job security During the course of the year there was very little change in the proportion of respondents saying that they were very likely or likely to lose their job. The clear conclusion from Table 2 is the erosion of confidence among public sector employees. In spring

only 8% stated that they felt likely or very likely to lose their job. By winter this figure had almost doubled. Its interesting to look at how confidence in different business sectors has been affected by the recession. This is shown in Table 3. In Table 3, employee confidence is measured according to whether the employee thinks that it is unlikely or very unlikely that they will lose their job. The table shows that private sector services are starting to edge out of recession, with a large increase in the confidence of

Table 2: All who stated that it was very likely or likely that they would lose their job as a result of the recession (%)

Spring Private sector Public sector Third sector All UK employees 23 8 16 18

Summer 19 11 11 17

Autumn 19 12 12 17

Winter 20 15 18 18

Table 3: Confidence that employee will not lose job due to the recession (%)

Spring Manufacturing Construction Banking and finance Wholesale and retail Hotels and restaurants Transport/telecoms/post Business services Education Health Social and personal services Public administration 32 35 36 50 41 51 48 69 71 51 74

Winter 51 36 57 53 48 43 44 66 69 49 60

Change +/ + + + + +

16

Employee outlook: Year review

those working in manufacturing and the banking and finance sector that they will not lose their job. The years data also shows that confidence has ebbed away for a number of professions, most notably in the public sector. Employee confidence ratings for public administration show a 14 percentage point fall in confidence and reflect the economic reality that the public sector will experience significant cuts in expenditure over the next few years. Job security perception versus reality To what extent are employees concerns matched by what is happening in the economy? One way to analyse this is to plot responses to the job security question against unemployment data for the period immediately before the survey. In Figure 12, the unemployment rate is the average rate for the three months prior to the survey (this data is taken from the Labour Force Survey and is seasonally adjusted. Monthly data is based on three month rolling averages). Figure 12 shows that the unemployment rate climbed steeply between the spring and autumn waves of the survey, but the proportion of respondents who said that they were likely or very likely to lose their job remained virtually unchanged. One explanation of this could be that respondents views on job security are influenced

more by what was going on in their own organisation rather than what is happening in the economy as a whole. This can be reflected in respondents views about their future within the context of the recession, as shown in Figure 13 (on page 18). Figure 13 shows that worries about the future, feeling less secure in the job and having concerns about being made redundant are closely linked and follow the same trend season by season. Plotted against each factor is a co-efficient that shows how closely correlated each factor is with how likely employees feel they will lose their job. Figure 13 shows that each factor is highly correlated with this issue. It is not surprising that there should be a link between an employee saying that it is likely that they will lose their job and wider concerns about the future. What is surprising, however, is the relative disconnect between an employee fearing for their job and whether or not the company they work for has actually made redundancies or plans to do so. Combining the data for the whole year shows that over two-thirds of employees in businesses that have made redundancies do not have any concerns for their job security. In fact, the proportion in these businesses that say that they are unlikely to lose their job is greater than the proportion who say they are likely.

Figure 12: Fear of losing job against unemployment rate

25 23 21 Very likely/likely to lose job (%) 19 17 15 13 11 9 7 5 Spring Summer Likely to lose job Autumn Unemployment rate Winter 36 7.0 6.8 6.6 6.4 6.2 8.0 National unemployment rate for three months prior to the survey (%) 7.8 7.6 7.4 7.2

Employee outlook: Year review

17

Figure 13: Worries about job security (%)

60

56 50 51 44 36 51 44 37 Correlation 0.63 Correlation 0.70 Correlation 0.82

50

46 42 37

40

34

30

20

18

17

17

18

10

Spring Worried about the future Concern over job security

Summer Feel less secure in job

Autumn

Winter

Concerned about being made redundant

Base: All UK employees whose organisation has been affected by the recession (spring: n = 2,363; summer: n = 2,672; autumn: n = 1,712; winter: n = 1,722)

Private sector employees felt less insecure about their job in winter 2009 than they did at the beginning of the year in spring. However, for public sector employees job security went in reverse a third of public sector employees agreed in spring 2009 that they felt less secure about their job, but by winter 2009 this figure had increased to 42%. Security among voluntary sector employees remained consistent throughout the year.

Being satisfied and feeling secure about your job is important to the UK workforce, but it would be safe to assume that being able to perform is just as important. While there was no significant relationship between job satisfaction and worklife balance, the next section will examine what worklife balance means to employees and how it may affect other aspects of employment.

18

Employee outlook: Year review

4 Worklife balance

In addition to being an employee, the likelihood is that individuals are also partners, parents, children or even carers for others. As a result the balance they achieve between their work and day-to-day life is important. While previous sections suggested that respondents did not make a connection between having an imbalance between work and home life and overall job satisfaction, this section will look at the impact of worklife balance in a wider context. So, how has worklife balance changed over the year?

Maintaining a balance Balance between home and work lives significantly improved over the course of the year, with figures being at their highest in summer 2009 (61%). As might be expected, as support from organisations improved, the balance between home and work life also improved. As figures peaked in summer for the balance between home and work life, the percentage who agreed that their organisation and managers provides them support also increased.

Figure 14: Worklife balance 2009 (%)

70 61 56 58 59

60

50 40 36 36 32 30 31

40

37 34 32

20

10

I acheive the right balance between my home and work lives. Strongly agree/agree (Spring) Strongly agree/agree (Autumn)

My organisation provides support to help me manage my worklife balance. Strongly agree/agree (Summer) Strongly agree/agree (Winter)

My manager provides support to help me manage my worklife balance.

Base: All UK employees who report to someone (spring: n = 3,171; summer: n = 3,337; autumn: n = 2,057; winter: n = 2,041)

Employee outlook: Year review

19

In section 3 a recurring trend seemed to emerge that public sector employees felt more supported than private sector employees this seems to be the case in relation to worklife balance as well. As Figure 15 shows, employees within the private sector were more likely to disagree that their organisation provides them with support with mainly negative net scores (except for summer 2009). Employees working within the public and voluntary sector, however, were generally quite satisfied, with positive net scores throughout the year.

When worklife balance was examined against those who do and do not have children under 18, there was not a great deal of difference. Regardless of children, 70% of the UK population felt they achieved the right balance between home and work. There seems to be varied support across sector and organisation when it came to balancing work and home life. Most employees felt that their organisation was generally supportive regarding worklife balance, but does this positivity and support relate to other things within the organisation, such as management? The next section looks at how the UK workforce feels about its senior management.

Figure 15: Organisational support for worklife balance (net scores)

11 Winter 3 20 Autumn 4 15 Summer 10 6 Spring 5 25 20 15 10 5 0 5 10 15 20 25 6 9 7 10

Private sector

Public sector

Voluntary sector

Base: Private sector (spring: n = 2,230; summer: n = 2,223; autumn: n = 1,464; winter: n = 1,459), public sector (spring: n = 713; summer: n = 721; autumn: n = 395; winter: n = 381), voluntary sector (spring: n = 221; summer: n = 206; autumn: n = 108; winter: n = 105)

Table 4: Parents and worklife balance (combined 2009) (%)

I achieve the right balance between my home and work lives. Children Agree Disagree 70 31 No children 69 31

20

Employee outlook: Year review

5 Attitudes to senior management

In section 2, we saw that the role of senior management is very important in shaping an employees job satisfaction. Therefore, how senior managers are perceived by their employees is important as they not only affect how the company operates but how its employees operate. This section explores whether or not attitudes towards senior management have changed over the four surveys and how the UK workforce is being communicated to by its senior leaders. Figure 16 shows that net agreement scores with various statements about senior managers have generally remained similar over the last four seasons, with a few

shifts in trust and employee consultation. Net agreement scores are the percentage of UK employees who agree subtracted from the percentage of employees who disagree. The line of data for trust and consulting employees are almost mirror images of each other and, interestingly, as the scores for confidence dip, so do the scores for trust. Net scores for treating employees with respect and having a clear vision have also remained similar over the last four seasons. When it comes to consultation, net scores are negative, indicating that senior management generally tend not to consult employees about important decisions.

Figure 16: Senior management 2009 (net agreement score)

30

20

17 11

16 13 5

17 11

16 11

Net agreement scores

10 2 0 1

2 0

4 10

20

21 24 29 28 Winter Confidence

30

Spring Clear vision Trust

Summer Treat employees with respect

Autumn

Consult employees about important decisions

Base: All UK employees who report to someone (spring: n = 2,562; summer: n = 2,662; autumn: n = 1,703; winter: n = 1,668)

Employee outlook: Year review

21

At the end of 2009, just under half (44%) of UK employees (excluding sole traders) agreed that the directors/senior management team of their organisation have a clear vision of where the organisation is going and how to get there. While UK employees seem content with the clarity of senior managements vision for the organisation, they are less so with how they are involved in important decisions. Since spring 2009, the percentage of employees who disagree that their directors/senior managers consult them about important decisions has increased significantly from 48% to 52%. Having said this, results indicate that micro businesses have continued to consult better than medium and larger organisations throughout 2009.

employees working for micro and small organisations were more satisfied with their job than those working in medium and large organisations. Figure 17 shows that as the size of the organisation increases, the level of trust decreases. Employees working in micro organisations were almost twice as likely to trust senior management within their organisation. For micro organisations the level of trust remained consistent over 2009, with no significant changes in results. For small organisations the level of trust increased significantly between spring and summer of 2009, but then remained the same over autumn and winter. For employees working within larger organisations, the

Confidence and trust have generally been low since spring 2009. There also seems to have been a recurring pattern throughout the year in that the smaller the organisation, the more trust employees have in senior managers. Interestingly, section 5 identified that the more honest and open a manager, the more job satisfaction an employee has. Not surprisingly,

shift in trust was more significant. Between spring and summer of 2009, the level of trust employees had with their directors/senior managers increased significantly. This then decreased significantly in autumn only to remain consistent in winter. Aside from organisation size, what else could explain the general low levels of trust among UK employees?

Figure 17: UK employees who trust directors/senior management team of their organisation (strongly agree/ agree percentages)

60

39 57 47 55 45 31 25 58 46 37 Medium organisation Autumn 28 Large organisation Winter 33 26 30

39

Micro organisation Spring

Small organisation Summer

22

Employee outlook: Year review

By the end of 2009, private sector employees were significantly more likely than their public sector counterparts to agree that senior management within their organisation have a clear vision. When it comes to confidence, however, voluntary sector employees are significantly more likely than private and public sector employees to agree that they have confidence in senior management (50% compared with 39% private sector and 24% public sector employees). With voluntary sector employees having most confidence, it is not surprising that they are also significantly more likely to trust senior management than public and private sector employees 52% of voluntary sector employees agreed that they trust senior management compared with 23% of public and 37% of private sector employees. Attitudes towards line managers During 2009, over 90% of the UK workforce reported to a manager/boss/supervisor and the Employee Outlook survey explored how line managers interacted with their staff and what they actually did. UK employees were asked how often their line managers do the things listed in Table 5. The

frequency of the scale was: (i) always; (ii) usually; (iii) sometimes; (iv) rarely; (v) never. Percentages shown in Table 5 are aggregated scores for those who ticked always or usually. Scores have remained more or less similar over the last four seasons; however, training and development has seemed to take a back seat with a significant drop since spring 2009. In the final quarter (winter 2009), over a third (36%) of UK employees stated their managers always or usually discussed their training and development needs with them compared with 40% in spring 2009. The decline in training and development is perhaps expected as simultaneously the number of UK employees whose organisations have cut back on training as a result of the economic downturn has also increased significantly (17% in spring 2009 compared with 23% in winter 2009). This is also reflected in the findings of our annual Learning and Talent Development survey 2010, which shows that funds available for learning and development in the past 12 months have decreased for over half (52%) of organisations, with only one in ten employers (11%) expecting these to increase in the year to come.

Table 5: Line management attributes: To what extent does your immediate supervisor do each of the following? (%)

Spring (n = 2,562) Is committed to my organisation Treats me fairly Is supportive if I have a problem Listens if I have a suggestion to make Is open and honest Makes clear what is expected of me Recognises when I have done a good job Makes sure I have the resources to do the job Makes me feel my work counts Consults me on matters of importance to me Keeps me in touch with what's going on Gives me feedback on how I am performing Discusses my training and development needs with me Coaches me on the job 71 70 64 63 60 58 57 54 53 53 51 46 40 30

Summer (n = 2,662) 69 70 65 63 61 59 55 54 54 54 50 46 39 29

Autumn (n = 1,703) 69 69 63 63 59 58 56 50 51 54 51 45 38 30

Winter (n = 1,668) 67 67 61 61 55 56 52 51 48 52 47 43 36 27

Employee outlook: Year review

23

With a lack of trust among UK employees with regards to senior management, it is no surprise that the number of employees who feel their manager is always or usually open and honest has decreased significantly since spring 2009.

to note that employees within the public sector are more likely to state that they receive limited or little information about what is going on compared with private and voluntary sector employees. Figure 18 shows net satisfaction scores for employees

Splits of figures between the private and public sectors have decreased in spring 2009, 60% of private sector employees and 63% of public sector employees said their manager is always or usually open and honest but by winter these figures decreased to 53% and 56% respectively. Communication with the UK workforce In winter 2009, just over two-fifths (42%) of UK employees felt fully informed about what was happening within their organisation. This figure decreased significantly from spring 2009 when just under half (46%) of UK employees felt fully informed. At the other end of the spectrum over a third (36%) of UK employees felt they received only a limited amount of information and one in seven said they heard very little information about what is going on. It is important

across sector. Employees working within the voluntary sector seem far more satisfied with the opportunities provided to them to voice their issues/ideas upwards than those working within the private and public sector. With the public sector being least informed and most dissatisfied with opportunities to feed their views upwards, could there be a link between how informed an organisation keeps its employees and the opportunities it provides to voice their opinions? Figure 19 shows that employees who were satisfied with existing opportunities to feed their views upwards were also more likely to state that they felt fully informed about what is happening within their organisation. Those who were dissatisfied were more likely to state they received only a limited amount of information.

Figure 18: UK employees satisfied with existing opportunities to feed views upwards by sector

30 25 20 14 10 6 14 24

30

29

Net agreement scores

0 4 1 4

10

20

30

Spring Voluntary sector

Summer

Autumn Private sector

Winter Public sector

Base: Private sector (spring: n = 2,230; summer: n = 2,223; autumn: n = 1,464; winter: n = 1,459), public sector (spring: n = 713; summer: n = 721; autumn: n = 395; winter: n = 381), voluntary sector (spring: n = 221; summer: n = 206; autumn: n = 108; winter: n = 105)

24

Employee outlook: Year review

There is an indication that the more likely an organisation is to inform their employees, the more likely they are to include them. One could argue that the choice to include employees is that of senior management could wealth of organisational information among employees translate into trust and confidence among senior management? The next section looks in detail at how senior management communicate.

+52 and +48, employees who are fully informed are far more likely to have confidence and trust in senior management. A net score of 86 also seems to indicate that staff who are least informed generally tend to state that senior management do not consult them on important decisions. Lack of information also seems to relate to lack of

Senior management and communication Past research into engagement has found that one of the potential drivers is feeling well informed about what is happening in the organisation. As information plays an important role in both engagement and satisfaction, could it also influence trust and confidence among senior management?

vision. Eighty-four per cent of UK employees who feel fully/fairly informed agreed that the directors/senior management team of their organisation have a clear vision of where the organisation is going and how to get there, compared with 34% of those who have limited or little information. When it comes to senior management, those working

Figure 20 on page 26 shows how employees who are fully informed feel about senior management compared with those who are not informed. Scores shown below are net agreement scores (that is, the percentage of UK employees who agree subtracted from the percentage of employees who disagree). With a difference of 116 points, there is an indication that how well informed an employee feels could affect the level of trust and confidence they have towards their directors/senior managers. With net scores of

within the public sector seemed least satisfied but were also least informed about what is happening within their organisation. While we are unable to say with certainty, there is the possibility that informing the UK workforce could improve, to some extent, perception and interaction towards senior management. The question is whether poor management and communication is forcing employees to move on. The next section looks at employees future plans in more detail.

Figure 19: UK employee satisfaction with existing opportunities to feed views upwards (%)

Dissatisfied

14

50

34

Satisfied

22

66

11

10

I feel fully informed. I receive only a limited amount of information. Dont know

I feel fairly well informed. I get to hear very little about what goes on.

Employee outlook: Year review

25

Figure 20: Relationship between information and views of senior managers

100 90 80 70 60 50 40 Net agreement scores 30 20 10 0 10 20 30 40 50 60 70 80 90 100 The directors/senior management team of my organsation have a clear vision of where the organisation is going and how to get there. Fully/fairly informed 34 52 64 68 86 I have confidence in I trust the directors/ The directors/senior the directors/senior senior management management team management team team of my organisation. of my organisation of my organisation. treat employees with respect. The directors/senior management team of my organisation consult employees about important decisions.
98 114 116 116

64 52 48

62

10

96

Limited/little information

Scores shown are net agreement scores (that is, the percentage of UK employees who agree subtracted from the percentage of employees who disagree).

26

Employee outlook: Year review

6 Job-seeking

2009 saw the UK economy take a turn for the worse when it was announced that the country was officially in recession. Although there is no certainty, it is possible that if the economic climate was better, the UK workforces future job plans may have been different. This section explores how future job-seeking intentions have changed for UK employees over the year, who is moving on and who is not and how optimistic they are about the future. The section also explores employees views on retirement and pensions. UK employees moving on Figure 21 shows the percentage of employees who said they would ideally like to change their job within the next year. Results indicate that intentions across the sectors are fairly similar; however, some shifts exist among the private and public sector during summer and autumn 2009.

During spring and summer 2009, the percentage of UK employees who said they would ideally like to change their job decreased significantly. Between the summer and autumn seasons this figure then increased significantly only to remain constant during the last two seasons of the year. This was also the case for those working within the public and voluntary sector. As Figure 22 on page 28 shows, opinions also varied based on the age of the employee. Not surprisingly, those aged 55 and older generally tended to be consistent in regards to changing jobs. This could be a result of many things, but some possibilities could be that they are already in an established senior position or that they are close to retiring and therefore do not deem it relevant to be moving around. At the other end of the spectrum, employees aged 18 to 24 seemed more likely to want to move than other age groups. In winter 2009, 73% said they would ideally like to change their job within the next year.

Figure 21: Desire to change jobs within the next year, by sector (%)
60

50 43 40 35 38 34 44 42 40 % 30 42 38 31

20

10

Spring Private sector

Summer Public sector

Autumn Voluntary sector

Winter

Base: All UK employees (spring: n = 3,171; summer: n = 3,337; autumn: n = 2,057; winter: n = 2,041)

Employee outlook: Year review

27

Figure 22: Desire to change jobs within the next year, by age (%)
80 73 70 60

56 48

56 52

50

46 37 36

41 % 40 36 37 31 22 22

41

30 23 20

35

24

10

Spring 1824

Summer 2534 3544

Autumn 4554

Winter 55+

Base: All UK employees (spring: n = 3,171; summer: n = 3,337; autumn: n = 2,057; winter: n = 2,041)

What could be influencing the workforce? It would be fair to assume that the recession would have a substantial impact on employee behaviour. In spring 2009 a quarter of UK employees said their organisation had not been affected by the economic downturn. This figure decreased significantly in summer to 21% only to continue decreasing during the next two seasons, eventually ending at 17% in winter 2009. In spring 2009, employees working within the public sector were more likely to state that their organisation has not been affected by the economic downturn, with 34% stating this compared with 26% of voluntary sector and 23% of private sector employees. By winter all sectors had been hit severely by the recession, particularly the public sector, with the figure for those stating their organisation had not been affected by the economic downturn decreasing by 23 percentage points.

finding a new job, with the majority (64%) stating it would be difficult to find a new job if they lost their current one as a result of the recession. Public and voluntary sector employees, however, were far more optimistic in spring than in winter, when the impact of the recession was in full swing. In spring 2009, 56% of public and 55% of voluntary sector employees said it would be difficult to find a new job if they lost their current one as a result of the recession by winter these figures had increased to 64% and 63% respectively. As well as loss of confidence in job security, employees have identified other factors that have affected them personally as a result of the economic downturn. Could there be any internal factors within the control of the organisation that would help employee retention? Figure 23 shows a breakdown of employees who would

Respondents were asked how easy or difficult it would be to find a new job if they lost their current job as a result of the recession the majority said it would be difficult. Opinions among private sector employees remained fairly similar over the year when it came to

and would not like to move jobs within the next year against factors that have resulted from the recession. The percentages shown are of those employees who agree. Over half (55%) of UK employees who would like to change jobs within the next year said they felt less secure

28

Employee outlook: Year review

Figure 23: Factors influencing employees desire to change jobs (%)

60

55 51

50
18

40 37 % 30

40
23

38

27

21

27 20 17 10 13 14 16
2

I feel less secure in my job.

There is more office politics.

I am less trusting of my manager.

There is more conflict I feel confident finding in the workplace. work elsewhere.

Would like to change jobs

Would not like to change jobs

in their job compared with 37% who would not like to change jobs. The recession has seemed to bring along with it more office politics, with those who would ideally like to change jobs more likely to state it as an issue. Not surprisingly, the amount of conflict in the workplace also seems to be a factor. Just under one in five (17%) of UK employees not considering moving within the next year said that they experience more office conflict as a result of the economic climate. When compared with those who would like to move, the figure increased by 21 percentage points to 38%. Throughout the report the issue of trust has come up many times as being of significance, whether it is in relation to job satisfaction or perceptions of senior management. With one of the largest differences, trusting managers is perhaps of most significance when employees are considering moving. Two-fifths of UK employees who would ideally like to move within the next year agreed that they are less trusting of their managers compared with 13% who would not move.

uncertain about finding work elsewhere as those who are not considering moving. Now that we have identified who wants to change jobs and why, the next step is to examine how optimistic they are that they will be able to find a new job. The optimists and pessimists Figure 24 shows an overview of how employees wanting to change jobs felt about actually being able to. In spring 2009, 39% of UK employees wanting to change jobs were very optimistic or optimistic about being able to. This figure dropped significantly to 33% by winter. After an official announcement in spring 2009 that the UK is in recession, it is perhaps not surprising that employees were more pessimistic about changing jobs during summer 2009. With low scores in summer, there is a possible indication that employees began to see and feel the impacts of the recession. With a net score of 13, the year ended with many feeling pessimistic about changing their job. With a net score of +9, public sector employees were

Regardless of intentions to move, uncertainty about the economic climate still exists. With a difference of two percentage points, those considering moving are just as

more optimistic about being able to change jobs than their private sector employees (3) in spring 2009. By winter there was a drastic drop in net scores (private

Employee outlook: Year review

29

Figure 24: Optimism among UK employees in relation to changing jobs (%)

100 90 80 70 60 % 50 40 30 20 10 0 Spring Optimistic 39 40 37 12 Summer Pessimistic Autumn Net 52 39 41 33 46 10 5 2 0 Net score 10 15

13 Winter

15

Base: All UK employees (spring: n = 1,193; summer: n = 1,164; autumn: n = 870; winter: n = 793)

sector: 13; public sector: 23), possibly confirming the impacts felt by employees as a result of the downturn. The feeling is that those employees who wanted to move jobs in 2009 were generally not very optimistic about being able to do so but what about employees who did not want to move jobs?

security as a reason than private sector employees (18% compared with 13%). One in ten said they would not want to change jobs because of the pay and benefits they receive (9%) and because they enjoy working with their colleagues (8%). Very few (2%) said they would not like to change job

UK employees: staying put In summer 2009, the Employee Outlook covered additional ground to identify why employees would not like to change their jobs. As this question was only asked in one season, the figures for this section relate only to summer 2009.

because they have a good line manager and no one stated trusting senior management as a reason to stay. Now that we have looked at employees next short-term steps, where do they see themselves in the long term? Preparing for their future

The main reason why employees said they would not like to change their job in the next year is because they are satisfied. With 32% of employees stating this, it is by far the most important. Job security comes second, with 13% stating this, followed by difficulty in finding another job at 11%. Private sector employees were significantly more likely than public sector employees to state that they would not like to change jobs because it would be difficult to find another one (12% compared with 8% respectively). However, public sector employees were significantly more likely to state job

In autumn 2009, UK employees were asked their views on retirement. Just under a third (31%) said they do not plan to work beyond retirement/state pension age. One in ten said they plan to work part-time with the same employer and 8% said they plan to work full-time with the same employer. There is an indication that employees working within larger organisations are less likely to work beyond the retirement/state pension age than those working for micro and small organisations.

30

Employee outlook: Year review

Employees working within the private sector were almost twice as likely as their public sector counterparts to want to work beyond retirement. Women are also significantly more likely than men to want to work beyond retirement. For those employees surveyed in autumn 2009, reasons for working beyond retirement varied, but as Figure 26
Figure 25: Reasons for not changing jobs (%)
Job satisfaction Job security Difficult to find another job at the moment Good pay and benefits I enjoy working with colleagues I like my customers/clients Good pension Good career development opportunities Good line manager Receive a decent redundancy package if made redundant Good training and development opportunities I trust the senior management team I receive a good bonus Other Dont know

shows the majority will continue to work due to financial reasons (75%). For one in six (59%) it is about having the opportunity to continue to use their skills and experience and for 56% it is about social interaction. Interestingly, for a quarter of UK employees, continuing to work is about self-esteem.

32 13 11 9 8 5 3 2 2 1 1 0 0 13 1

10

15 %

20

25

30

35

Figure 26: Reasons for continuing employment beyond retirement (%)

80 70 60 50 % 40 30 20 10 2 0 Financial reasons Would like to continue using my skills and experience Social interaction Self-esteem To minimise time spent with partner/children 4 Other 1 Dont know 75

0.046
59 56 47

Employee outlook: Year review

31

Conclusions

The report has pieced together the results of four surveys that have tracked the views and experiences of a representative sample of the UK workforce. As a result of the research we have an insight into working life from more than 10,000 employees. There is no doubt that 2009 was a difficult year for the workforce. Rising unemployment, pay freezes and a tightening of the jobs market all added to a sense of uncertainty about the economic future. By the end of 2009 only 17% of employees said that their organisation had been left untouched by the recession. So what does the research tell us about working life during 2009? Are we happy in our jobs? By and large we are happy in our jobs. The proportion of people throughout the year who said that they were satisfied with their job outweighed the proportion who were dissatisfied. So far so good. However, the surveys show that we were less happy at the end of the year than we were at the start. Job satisfaction fell substantially in the summer and did not recover. Employees in large organisations were the most dissatisfied, with sole traders and those working in the voluntary sector the most satisfied. Why is this? The surveys identify a number of connected reasons. Many people felt that they worked too hard, and felt under excessive pressure more frequently than they were comfortable with. People also felt insecure in their jobs, with no realistic expectation that they could find something different. Job security is not, however, a key driver of job satisfaction (and neither is income). Peoples sense of job security improved at the end of the year but this was not matched by an improvement in job satisfaction. What can employers do about this? The surveys consistently show that managers can actually do a lot to affect the way their employees feel. The research

demonstrates in a number of places causal links between managerial performance in competencies such as openness, honesty and communication and how employees feel about their jobs. The report clearly identified a number of key drivers of job satisfaction that are in the gift of managers to affect both positively and negatively. Get these right and employees are more likely to respond, not just with greater job satisfaction but with greater loyalty to the organisation and a greater propensity to recommend it as an employer. Get it wrong and the reverse happens. Do we work too hard? Is there a culture of working long hours and feeling under stress and pressure? There is no doubt that many people feel under excessive pressure. About three in ten employees say that their workload is too much and one in seven feel under excessive pressure every day. A further one in four feel under excessive pressure once or twice a week. Those in medium and large organisations were most likely to feel the pressure. Despite this feeling of being under pressure, many employees are prepared to go the extra mile for their organisations. The key ingredient here is that they feel valued by their employer. That said, employees generally feel that they have got the balance right between work and home life. Over six in ten employees believe that they have the balance right. Women in particular were more likely than men to say they had struck the right balance. Is there a disconnect between employees and the people who run the organisation? There is no real evidence that employers and employees are pulling in the same direction with a sense of shared values and purpose. Only one in seven employees were clear about the core purpose of their organisation and just over four in ten believed that their manager had a clear view on where the

32

Employee outlook: Year review

organisation was going. Only two-fifths felt fully informed about what was happening within their organisation. In the public sector it was even less. Part of the disconnect relates to dissatisfaction among employees over the opportunity to have their voice heard and with their manager being open and honest with them. Throughout the research the communication skills of the manager and adopting an open and honest dialogue has been shown to be crucial. Communicating important information in an open and honest way leads to greater trust and confidence in senior managers and a greater sense of sharing in the purpose of the organisation. This can only be a good thing for the overall prospects of the organisation. Are we managing? A recurring theme throughout the research is the impact that managers have on their employees satisfaction, sense of purpose and commitment to the job. A manager who is open and honest, who informs and communicates, who recognises achievement and values their staff is rewarded with satisfied and motivated staff.

Worryingly the research has shown that as the year progressed, rather than doing more of the good things, many managers did fewer of them. Fewer people at the end of the year said that their manager recognised the value in the job they do. Fewer felt their manager was supportive, open and honest and was committed to the organisation. Of course, motivation and job satisfaction is not entirely down to how an employee relates to their manager our research also showed the importance of variety in what an employee does, the opportunity they have to use their skills and a degree of autonomy in how they work. Nevertheless, the employeemanager dynamic is an important determinant of how an employee feels about their work and it is clear from the research that more could be done by managers, particularly within large private organisations, to strengthen this relationship.

Employee outlook: Year review

33

We explore leading-edge people management and development issues through our research. Our aim is to share knowledge, increase learning and understanding, and help our members make informed decisions about improving practice in their organisations. We produce many resources on employee relations issues including guides, books, practical tools, courses. Please visit www.cipd.co.uk to find out more.
Issued: July 2010 Reference: 5314 Chartered Institute of Personnel and Development 2010

surveys and research reports. We also organise a number of conferences, events and training

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