Spring in partnership with. Employee Outlook

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1 Spring 2014 in partnership with Employee Outlook WORK WORKFORCE WORKPLACE

2 Championing better work and working lives The CIPD s purpose is to champion better work and working lives by improving practices in people and organisation development, for the benefit of individuals, businesses, economies and society. Our research work plays a critical role providing the content and credibility for us to drive practice, raise standards and offer advice, guidance and practical support to the profession. Our research also informs our advocacy and engagement with policy-makers and other opinion-formers on behalf of the profession we represent. To increase our impact, in service of our purpose, we re focusing our research agenda on three core themes: the future of work, the diverse and changing nature of the workforce, and the culture and organisation of the workplace. WORK Our focus on work includes what work is and where, when and how work takes place, as well as trends and changes in skills and job needs, changing career patterns, global mobility, technological developments and new ways of working. WORKFORCE Our focus on the workforce includes demographics, generational shifts, attitudes and expectations, the changing skills base and trends in learning and education. WORKPLACE Our focus on the workplace includes how organisations are evolving and adapting, understanding of culture, trust and engagement, and how people are best organised, developed, managed, motivated and rewarded to perform at their best. About CIPD The CIPD is the professional body for HR and people development. We have over 130,000 members internationally working in HR, learning and development, people management and consulting across private businesses and organisations in the public and voluntary sectors. We are an independent and not-for-profit organisation, guided in our work by the evidence and the front-line experience of our members. cipd.co.uk About Halogen Halogen Software offers an organically built cloud-based talent management suite that reinforces and drives higher employee performance across all talent programmes whether that is recruiting, performance management, learning and development, succession planning or compensation. With over 1,750 customers worldwide, Halogen Software has been recognised as a market leader by major business analysts and has garnered the highest customer satisfaction ratings in the industry. Halogen Software s powerful, yet simple-touse solutions, which also include industry-vertical editions, are used by organisations that want to build a world-class workforce that is aligned, inspired and focused on delivering exceptional results.

3 Employee Outlook Spring 2014 Contents Foreword from the CIPD 2 Foreword from Halogen 3 Key findings 4 Job satisfaction and engagement 7 Employee attitudes towards managers 9 Performance management 10 Pressure at work 12 Work life balance 13 Employee attitudes to the current economic context 14 Job-seeking 16 Conclusions 17 Background to the survey 19 cipd.co.uk/employeeoutlook 1

4 Foreword from the CIPD The CIPD is delighted to be partnering with Halogen on our important Employee Outlook tracker research. The CIPD/Halogen spring 2014 Employee Outlook reveals some interesting findings in employee attitudes that reinforce the importance that employers should place on talent retention strategies. First, this survey shows a marked increase in negative perceptions of senior managers, with overall trust and confidence in senior managers hitting a two-year low. Trust and confidence levels are particularly low in the public sector and have potentially been influenced by the current unrest and strike action going on in the public sector. The survey also reveals performance management and progression issues. Almost a third of employees believe that their current performance management systems are unfair, with a worryingly higher proportion of employees overall in the public sector believing their systems to be unfair as opposed to fair. Again this is likely to be linked to the current unrest in that sector related to pay, pensions and performance. There are also concerns regarding progression across sectors but particularly in the voluntary sector, with more employees currently feeling that career progression is unachievable as opposed to achievable. This survey sees a very slight drop in job-seeking intentions compared with autumn 2013 s two-year high, but talent is still planning to be on the move compared with figures from previous surveys. Organisations therefore need to think very carefully about creative retention strategies in order to retain their top talent as the economy picks up. In particular, this survey s results show that much more work is needed around effective and motivating performance management approaches as well as providing progression opportunities for the majority of employees, who will have seen very little movement in organisations over the last few years. Clearly more also needs to be done in order to build confidence and trust in senior leaders, who are pivotal to organisations and have been shown previously through our Employee Outlook data to have a relationship with employee job satisfaction, advocacy and jobseeking intentions. Claire McCartney Adviser, Resourcing and Talent Planning, CIPD 2 cipd.co.uk/employeeoutlook

5 Employee Outlook Spring 2014 Foreword from Halogen Halogen is once again very proud to support the Employee Outlook survey. The survey continues to reveal compelling trends that highlight the ongoing need for organisations to focus on their talent as they strive for growth. With employee perceptions of the job market improving, demonstrated by fears of redundancies decreasing and intentions to leave remaining comparatively high, organisations need to consider how well their existing talent strategies are supporting the retention and motivation of their employees. The evidence suggests that critical aspects of these strategies are failing to deliver the required results. The survey reveals a two-year low in trust in senior leadership, coupled with 30% of employees considering their performance management process to be unfair (with less than 40% considering it fair). And on top of this, perceptions of career progression amongst employees are not positive, with more employees believing it to be unachievable (32%) than achievable (31%). These results highlight that a weakness exists in the current talent management process with regards to meeting the growing expectations of a workforce that may have seen little by way of improved reward or progression during the recent economic downturn. At Halogen we encourage organisations to review whether their talent management process contains these critical elements: a performance management process that aligns employees to the strategies and goals of the organisation an approach to performance that facilitates effective and continuous two-way communication between line managers and employees, building trust across the workforce identifies the learning and development needs of each employee so that they grow with the organisation enables managers to identify and highlight those employees who add the most value to the business for differential reward and progression. With these factors in place, HR will be in a better place to help their businesses meet the demands of a more mobile and expectant workforce. Donna Ronayne Vice President of Global Marketing Halogen Software cipd.co.uk/employeeoutlook 3

6 Key findings Job satisfaction and engagement The proportion of engaged employees this quarter is 35%, a very slight decrease from previous surveys (autumn 2013: 36%; spring 2013: 37%) and still below the levels of autumn 2012 (38%). Four per cent of employees are disengaged and 61% remain neutral. Job satisfaction levels (+42) are slightly up on spring 2013 (+40). Employees in the voluntary sector continue to be the most satisfied with their jobs (+48), with a slight decrease from previous surveys (autumn 2013: +54; spring 2013: +52). Job satisfaction in the private sector has shown an increase in this Employees in the public sector remain the most negative about their senior managers and there have been some substantial decreases in this survey. survey (+42 compared with +39 in autumn and spring 2013) but is still below winter levels (+45 and +48 respectively). While job satisfaction has decreased in this survey in the public sector (+37), it is up on 2013 levels (autumn 2013: +41%; spring 2013: +25). Employee attitudes towards managers Overall, attitudes towards line managers remain positive, with 64% of employees strongly satisfied or satisfied with their relationship with their line manager. Employees in the voluntary sector are most satisfied with their relationship with their line manager (67% strongly satisfied or satisfied), while for employees in both the public and private sectors the figure is 64%. This survey sees a fall in ratings for senior managers in all areas apart from ratings of senior managers visions for their organisations. Confidence in particular has fallen by 5 net percentage points and trust in senior leaders and perceptions of consultation have fallen by 4 net percentage points each. This represents a two-year low in our survey findings. This goes against a trend seen in previous Employee Outlook (EO) surveys of general improvements in perceptions of senior managers. Employees in the public sector remain the most negative about their senior managers and there have been some substantial decreases in this survey the biggest decreases are in relation to senior managers treating employees with respect (decrease of 12 net percentage points), trust in senior leaders (decrease of 11 net percentage points) and confidence 4 cipd.co.uk/employeeoutlook

7 Employee Outlook Spring 2014 in senior leaders (decrease of 14 net percentage points). Performance management Overall more employees reported that they believe their organisation s performance management process is fair (39%) rather than unfair (30%). However, employees in the public sector were more likely to believe their performance management process is unfair (33%) than fair (32%). With employees in the voluntary sector most likely to view their process as very or somewhat fair (47%). Over half of employees (56%) believe communication with their managers regarding objectives and expectations to be very or somewhat effective. However, two in ten (20%) feel that it is either somewhat or very ineffective. When it comes to how achievable employees believe career progression is within their organisations currently, more employees believe it is unachievable (32%) rather than achievable (31%), with a further 31% neutral on this question. It is actually employees in the public sector who are most likely to say that progression is achievable (33%) (private sector: 31%; voluntary sector: 29%). Pressure at work The proportion of employees reporting excessive pressure at work every day or once or twice a week in spring 2014 remains at 41%, the same as spring and autumn The difference between men (45%) and women (38%) reporting excessive pressure on a frequent basis has increased from previous surveys. There is a statistically significant link between dissatisfaction with current jobs and feelings of excessive frequent pressure. Employees who are dissatisfied with their current jobs (66%) are significantly more likely to feel under excessive frequent pressure as opposed to those neither satisfied nor dissatisfied (46%) or satisfied (32%) with their current jobs. Work life balance Employees satisfaction with their work life balance has remained at the relatively high level of 58% in this survey. However, it is women (63%) who are significantly more likely than men (52%) to enjoy a better work life balance. When it comes to sector differences, voluntary sector employees are the most satisfied with their work life balance (69%), representing a substantial increase from autumn 2013 (55%). Public sector employees work life balance appears to have dipped since 41% The proportion of employees reporting excessive pressure at work every day or once or twice a week in spring 2014 remains at 41%. V cipd.co.uk/employeeoutlook 5

8 V 15% Spring 2014 sees a slight drop in the overall number of employees saying it is very likely or likely that they could lose their job as a result of the current economic context (15% compared with 18% in autumn 2013). autumn 2013 (55% compared with 60%) and are now the least satisfied sector, while private sector employees work life balance has remained the same (58%). Employee attitudes to the current economic context Spring 2014 sees a slight drop in the overall number of employees saying it is very likely or likely that they could lose their job as a result of the current economic context (15% compared with 18% in autumn 2013). Employees fears over losing their jobs are highest in the public sector (23% the same as autumn 2013) and lowest in the private sector (13% a drop from 18% in autumn 2013). This survey also sees a slight increase in the number of employees in the voluntary sector concerned about job loss (20% say it is very likely or likely that they could lose their job compared with 18% in autumn 2013). Overall, there has been a decrease in the number of organisations making redundancies (30% from 33% in autumn 2013) and a very slight increase (12% compared with 11% in autumn 2013) in organisations planning to make redundancies. This shows that there is still some uncertainty about the future economic climate. In terms of employees perceptions of their personal standard of living, this survey sees fewer employees believing that it has worsened in the last six months. Overall, 11% say that their personal standard of living has improved (the same as autumn 2013), 66% that it has stayed the same (62% in autumn 2013) and 24% that it has worsened (27% in autumn 2013). Job-seeking Our last survey in autumn 2013 revealed a two-year high in employees job-seeking intentions at almost a quarter (24%). This figure has reduced slightly in spring 2014 (22%) but is still above previous surveys (spring 2013: 21%; winter : 20%; spring 2012: 20%). This survey sees a rise in employees in the voluntary sector looking for a new job (27%, up from 24%) and a slight drop in the public (20% from 23%) and private sectors (22% from 24%). Age differences show that younger employees (18 24-year-olds) are significantly more likely to be looking for a new job than older employees (55+ years). Employees feeling under excessive pressure every day are also most likely to be looking for a new job (37%) and the lowest income-earners (earning less than 15,000) are also most likely to be looking for a new job (30%). 6 cipd.co.uk/employeeoutlook

9 Employee Outlook Spring 2014 Job satisfaction and engagement The Employee Outlook Engagement Index comprises a set of measures which are important to understanding the level of engagement an employee feels towards their organisation. The index consists of 16 items, weighted and aggregated together to give an overall score (see below). The proportion of engaged employees this quarter is 35%, a very slight decrease from previous surveys (autumn 2013: 36%; spring 2013: 37%) and still below the levels of autumn 2012 (38%). Four per cent of employees are disengaged and 61% remain neutral. Voluntary sector employees remain the most engaged (52%). Engagement levels have dropped somewhat in the public sector (30%) after a trend of previous increases (autumn 2013: 37%; spring 2013: 33%; winter : 29%), while private sector engagement levels (36%) remain broadly the same as previous surveys (autumn 2013: 36%; spring 2013: 37%). Engagement tends to decrease as the size of organisations increases (see Table 1). Employee Engagement Index Mean Score* Factor Items included in the factor Autumn 2013 Spring 2014 Going the extra mile Alignment to organisation purpose Work life balance Relationships with colleagues Satisfaction with role Attitude to senior managers Satisfaction with line manager/ advocacy I will often take on more work to help relieve my colleagues workloads. I will often work for more hours than those I am paid or contracted to do. I know very clearly what the core purpose of my organisation is. I am highly motivated by my organisation s core purpose. I achieve the right balance between my home and work lives. Approximately how much of the time do you feel under EXCESSIVE pressure in your job? I have positive relationships with my colleagues My job is as challenging as I would like it to be. My organisation gives me the opportunities to learn and grow. I am satisfied with the content of my job role. Overall, how satisfied or dissatisfied would you say you are with your current job? I have confidence in the directors/senior management team of my organisation. I trust the directors/senior management team of my organisation. Overall how satisfied, or dissatisfied, are you with the relationship you have with your immediate supervisor, line manager or boss? How likely or unlikely would you be to recommend your organisation as an employer? I don t think my employer treats me fairly. *Please note figures shown are mean scores and the range of scores is from 1 (engaged) to 5 (disengaged) cipd.co.uk/employeeoutlook 7

10 +42 V Job satisfaction levels (+42) are slightly up on autumn Job satisfaction levels (+42) are slightly up on autumn 2013 (+40). Employees in the voluntary sector continue to be the most satisfied with their jobs (+48), with a slight decrease from previous surveys (autumn 2013: +54; spring 2013: +52). Job satisfaction in the private sector has shown an increase in this survey (+42 compared with +39 autumn 2013 and still below spring 2013 and winter levels (+45 and +48 respectively). While job satisfaction has decreased in this survey in the public sector (+37), it is up on spring 2013 levels (autumn 2013: +41; spring 2013: +25). Employees in micro businesses (2 9 employees) are by far the most satisfied with their jobs (+64), with a slight increase in satisfaction levels reported by employees in larger organisations in this survey (+36 compared with +33 in autumn 2013 and +30 reported in spring 2013). Older employees (55+ years) at a net satisfaction of +53 are the most likely to be satisfied with their jobs and those in the middle age category (35 44-year-olds: +31) are least likely to be satisfied. Table 1: The extent to which employees are engaged at work, by gender, sector and size of organisation (%) Engaged Neutral Disengaged All Men Women Voluntary sector Private sector Public sector Micro businesses Small businesses Medium businesses Large businesses Base: 2,523; men: 1,294; women: 1,229; private: 1,838; public: 479; voluntary: 103; micro: 305; small: 266; medium: 318; large: 1, cipd.co.uk/employeeoutlook Table 2: Employee net satisfaction, by sector and size of organisation (net % satisfaction) Spring 2014 Autumn 2013 Spring 2013 Winter Overall Voluntary sector Private sector Public sector Micro businesses Small businesses Medium businesses Large businesses Base: for spring 2014: 2,523; private: 1,838; public: 479; voluntary: 103; micro: 305; small: 266; medium: 318; large: 1,204.

11 Employee Outlook Spring 2014 Employee attitudes towards managers Attitudes to line managers Overall, attitudes towards line managers remain positive, with 64% of employees strongly satisfied or satisfied with their relationship with their line manager. Employees in the voluntary sector are most satisfied with their relationship with their line manager (67% strongly satisfied or satisfied), while for employees in both the public and private sectors the figure is 64%. Younger employees are also the age group most likely to be satisfied with their relationship with their line manager (74% strongly satisfied or satisfied) while older employees of 55+ years are least likely to be satisfied (62% strongly satisfied or satisfied). Attitudes to senior managers This survey sees a fall in ratings for senior managers in all areas apart from ratings of senior managers visions for their organisations. Confidence in particular has fallen by 5 net percentage points and trust in senior leaders and perceptions of consultation have fallen by 4 net percentage points each. This goes against a trend seen in previous EO surveys of general improvements in perceptions of senior managers. Employees in the public sector remain the most negative about their senior managers and there have been some substantial decreases in this survey the biggest decreases are in relation to senior managers treating employees with respect (decrease of 12 net percentage points), trust in senior leaders (decrease of 11 net percentage points) and confidence in senior leaders (decrease of 14 net percentage points). Respondents in the voluntary sector remain the most positive towards their senior leaders, but scores have dropped here again across all items apart from employees trust in their senior leaders, which has increased by 9 net percentage points. In the private sector there have been decreases in employees perceptions of senior leaders consultation (decrease of 3 net percentage points), trust in senior leaders (decrease of 4 net percentage points) and confidence in senior leaders (decrease of 4 net percentage points), but an increase in belief in senior leaders vision (increase of 2 net percentage points). Table 3: Senior manager net agree scores (%) Spring 2014 Autumn 2013 Spring 2013 They consult employees about important decisions They treat employees with respect I trust them I have confidence in them They have a clear vision of where the organisation is going Base: spring 2014: 2,193; autumn 2013: 2,488; spring 2013: 1,844. Table 4: Senior manager net agree scores, by sector (%) Private sector Public sector Voluntary sector Spring 2014 Autumn 2013 Spring 2014 Autumn 2013 Spring 2014 They consult employees about important decisions They treat employees with respect I trust them I have confidence in them They have a clear vision of where the organisation is going Base: spring 2014: 2,193; autumn 2013: 2,488. Autumn 2013 cipd.co.uk/employeeoutlook 9

12 Performance management V 39% Overall, more employees reported that they believe their organisation s performance management process is fair (39%). We started to explore issues relating to performance management in autumn In this section we look at employees perceptions of fairness relating to their performance management processes, their communication with line managers around objectives, whether employee pay is linked to performance review processes and ultimately how achievable employees perceive career progression to be. Overall, more employees reported that they believe their organisation s performance management process is fair (39%) rather than unfair (30%). However, employees in the public sector were more likely to believe their performance management process is unfair (33%) than fair (32%). Employees in the voluntary sector were most likely to view their process as very or somewhat fair (47%). Table 5: How fair do you believe your organisation s performance management process is? (%) All Private Public Voluntary Very fair Somewhat fair Neutral Somewhat unfair Very unfair Don t know Base: 2,193. Table 6: How effective do you believe your communication with your line manager is in being clear on your objectives and expectations? (%) All Private Public Voluntary Very effective Somewhat effective Neither effective nor ineffective Somewhat ineffective Very ineffective Don t know Base: spring 2014: 1,960; private:1,378; public: 465; voluntary: cipd.co.uk/employeeoutlook

13 Employee Outlook Spring 2014 When it comes to the issue of whether pay is linked to performance reviews, just under a third (30%) of employees say that it is within their organisations. Pay is most likely to be linked to performance in the private sector (33%) and least likely to be linked in the voluntary sector (13%), with the public sector in between the two (25%). Over half of employees (56%) believe communication with their managers regarding objectives and expectations is very or somewhat effective. However, two in ten (20%) feel that it is either somewhat or very ineffective. When it comes to sector differences, employees in the voluntary sector are most complimentary about communication with their managers, with 70% believing it is either very effective or somewhat effective. Employees in the public sector are also likely to be very positive about this (61% believe communication is somewhat or very effective). Just over half (54%) believe this to be the case in the private sector. When it comes to how achievable employees believe career progression is within their organisations currently, more employees believe it is unachievable (32%) than achievable (31%), with a further 31% neutral on this question. It is actually employees in the public sector who are most likely to say that progression is achievable (33%) (private sector: 31%; voluntary sector: 29%). 56% Over half of employees (56%) believe communication with their managers regarding objectives and expectations is very or somewhat effective. V cipd.co.uk/employeeoutlook 11

14 Pressure at work The proportion of employees reporting excessive pressure at work every day or once or twice a week in spring 2014 remains at 41%, the same as spring and autumn The difference between men (45%) and women (38%) reporting excessive pressure on a frequent basis has increased from previous surveys. Sector differences show that employees in the public (50%) sector are most likely to feel under excessive frequent pressure (compared with 42% in autumn 2013), while private (40%) and voluntary (39%) sector employees share similar levels of feeling under excessive pressure at work. There are also differences by size of organisation. Employees working in micro (33%) or small (41%) organisations are least likely to feel under excessive frequent pressure, while employees from medium (49%) and large (46%) organisations are most likely to feel under excessive frequent pressure. There is a statistically significant link between dissatisfaction with current jobs and feelings of excessive frequent pressure. Employees who are dissatisfied with their current jobs (66%) are significantly more likely to feel under excessive frequent pressure as opposed to those neither satisfied nor dissatisfied (46%) or satisfied (32%) with their current jobs. There is also a statistically significant link between perceptions of senior managers and exposure to excessive pressure at work. Employees who strongly disagreed that senior managers have a clear vision (60%), that they have confidence in senior managers (63%), trust them (62%), feel respected by them (68%) and feel consulted by them (60%) were significantly more likely to be experiencing excessive pressure daily or once or twice a week. Table 7: Proportion of employees saying they are under excessive pressure at work (%) Spring 2014 Autumn 2013 Spring 2013 Every day Once or twice a week Once or twice a month Less frequently than once a month Never Base: spring 2014: 2,523; autumn 2013: 2,918; spring 2013: 2,067. Table 8: Proportion of employees saying they are under excessive pressure at work (%) All Men Women Private Public Voluntary Every day Once or twice a week Once or twice a month Less frequently than once a month Never Base: 2,523; men: 1,294; women: 1,229; private:1,838; public: 479; voluntary: cipd.co.uk/employeeoutlook

15 Employee Outlook Spring 2014 Work life balance Employees satisfaction with their work life balance has remained at the relatively high level of 58% in this survey. However, it is women (63%) who are significantly more likely than men (52%) to enjoy a better work life balance. When it comes to sector differences, voluntary sector employees are the most satisfied with their work life balance (69%), representing a substantial increase from autumn 2013 (55%). Public sector employees work life balance appears to have dipped since autumn 2013 (55% compared with 60%) and they are now the least satisfied sector, while private sector employees work life balance has remained the same (58%). Employees working part-time (77%) are significantly more likely than their full-time (50%) colleagues to agree that they achieve the right balance between their work and their home lives. Further, those employees who are most engaged at work (73%) according to our engagement index are much more likely to be satisfied with their work life balance than those who are neutral (52%) or not engaged (12%). 58% Employees satisfaction with their work life balance has remained at the relatively high level of 58% in this survey. V Table 9: Proportion of employees agreeing they achieve the right balance between their work and home lives (%) All Men Women Private Public Voluntary Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree Base: 2,523; men: 1,294; women: 1,229; private: 1,838; public: 479; voluntary: 103. cipd.co.uk/employeeoutlook 13

16 Employee attitudes to the current economic context Spring 2014 sees a slight drop in the overall number of employees saying it is very likely or likely that they could lose their job as a result of the current economic context (15% compared with 18% in autumn 2013). Employees fears over losing their jobs are highest in the public sector (23% the same as autumn 2013) and lowest in the private sector (13% a drop from 18% in autumn 2013). This survey also sees a slight increase in the number of employees in the voluntary sector concerned about job loss (21% say it is very likely or likely that they could lose their job compared with 18% in autumn 2013). Those who feel insecure in their jobs were also less likely to report higher levels of engagement. Only 10% of those who think they are likely or very likely to lose their job are engaged, compared with 65% of those who believe job loss is unlikely. A further 37% of those feeling insecure in their jobs are disengaged. The age group most likely to say that it is very likely or likely that they could lose their jobs because of the economic climate is the 55+ category (17%). Fewer employees overall report experiencing the consequences of the economic downturn on their organisation: 17% believe their organisation has not been affected, compared with 15% in autumn 2013, with an increase in the number of the respondents who say they are not affected across all sectors. Private sector (20%) employees are most likely to say their organisation has not been affected, while public sector (6%) employees are the least likely to say this. Overall, there has been a decrease in the number of organisations making redundancies (30% from 33% in autumn 2013); however, there have been slight increases in both the public and voluntary sectors. Overall, there has been a very slight increase (12% compared with 11% in autumn 2013) in organisations planning to make redundancies. This shows that there is still some uncertainty about the future economic climate. Overall, there have also been slight increases in pay freezes (40% compared with 38% in autumn 2013) and recruitment freezes (26% compared with 24% in autumn 2013). There have also been slight reductions in organisations cutting training (19% compared with 20% in autumn 2013), hours (17% compared with 18% in autumn 2013) and pay (5% compared with 6% in autumn 2013). Table 10: Proportion of employees saying it is likely or unlikely that they could lose their jobs as a result of the economic downturn (%) All Private Public Voluntary Very likely Likely Neither likely nor unlikely Unlikely Very unlikely Don t know Base: 2,523; private: 1,838; public: 479; voluntary: cipd.co.uk/employeeoutlook

17 Employee Outlook Spring 2014 Table 11: In which ways, if at all, has your organisation been affected by the economic climate? (%) Figures in brackets reflect the change from autumn All Private Public Voluntary It has made redundancies. 30 ( 3) 25 ( 5) 48 (+2) 34 (+5) It is planning to make redundancies. 12 (+1) 7 (0) 32 (+7) 9 (+1) It has cut back on training. 19 ( 1) 14 ( 2) 38 (+4) 17 ( 6) It has cut back on the number of hours that people work. 17 ( 1) 18 (+1) 17 (+1) 9 ( 5) It has increased the number of hours that people work. 6 (0) 5 (0) 9 (+3) 5 ( 8) It has frozen pay. 40 (+2) 32 (+1) 67 (+4) 44 (-8) It has cut pay. 5 ( 1) 4 ( 2) 11 (+4) 1 ( 3) It has frozen recruitment. 26 (+2) 22 (+1) 42 (+2) 16 ( 2) It has reduced the amount contributed to employee pensions. 6 (0) 4 (0) 12 (0) 6 (0) It has reduced employee benefits/perks. 16 (0) 15 (+1) 21 ( 2) 9 ( 3) It has been affected in some other way. 17 (0) 15 (+1) 24 (+2) 14 ( 11) It has not been affected by the economic downturn. 17 (+2) 20 (+2) 6 (+1) 14 (+2) Don t know 9 ( 2) 10 ( 2) 5 ( 3) 11 (+2) Base: 2,195; private: 1,581; public: 479; voluntary: 99. Employees personal standard of living In terms of employees perceptions of their personal standard of living, this survey sees fewer employees believing that it has worsened in the last six months. Overall, 11% say that their personal standard of living has improved (the same as autumn 2013), 66% that it has stayed the same (62% in autumn 2013) and 24% that it has worsened (27% in autumn 2013). Women continue to be less likely to report their personal standard of living has improved (only 9% report this compared with 10% in autumn 2013) compared with men (12%). Employees in the voluntary sector are most likely to have seen a drop in the number reporting improvements in their standard of living (7% from 16% in autumn 2013), with private sector employees seeing the biggest reduction in employees reporting their personal standard of living has worsened (22% compared with 26% in autumn 2013). Table 12: Thinking about the LAST SIX MONTHS, has your personal standard of living...? (%) Figures in brackets reflect the change from autumn All Male Female Full-time Part-time Private Public Voluntary Improved 11 (0) 12 (0) 9 ( 1) 12 (0) 7 (0) 11 (0) 8 (0) 7 ( 9) Stayed the same 66 (+4) 65 (+2) 67 (+5) 65 (+2) 67 (+6) 66 (+3) 64 (+3) 68 (+11) Worsened 24 ( 3) 23 ( 2) 24 ( 4) 23 ( 2) 26 ( 2) 22 ( 4) 29* ( 2) 25 ( 2) Base: 2,523; male: 1,294; female: 1,229; full-time: 1,984; part-time: 539; private: 1,838; public: 479; voluntary: 103. cipd.co.uk/employeeoutlook 15

18 Job-seeking V Age differences show that younger employees (18 24-year-olds) are significantly more likely to be looking for a new job than older employees (55+ years). Our last survey in autumn 2013 revealed a two-year high in employees job-seeking intentions at almost a quarter (24%). This figure has reduced slightly in spring 2014 (22%) but is still above previous surveys (spring 2013: 21%; winter : 20%; spring 2012: 20%). This survey sees a rise in employees in the voluntary sector looking for a new job (27%, up from 24%) and a slight drop in the public (20% from 23%) and private (22% from 24%) sectors. Age differences show that younger employees (18 24-year-olds) are significantly more likely to be looking for a new job than older employees (55+ years) see Table 14. Employees feeling under excessive pressure every day are also most likely to be looking for a new job (37%) and the lowest incomeearners (earning less than 15,000) are also most likely to be looking for a new job (30%). Finally, as you might expect, disengaged employees are much more likely to be looking for a new job (66%) than engaged employees (6%). Table 13: Proportion looking for a new job, by sector (%) Spring 2014 Autumn 2013 Spring 2013 All Private sector Public sector Voluntary sector Base: 2,523; private: 1,838; public: 479; voluntary: 103. Table 14: Proportion looking for a new job, by age (%) Base: 2,523; 18 24: 70; 25 34: 338; 35 44: 500; 45 54: 666; 55+: 949. Table 15: Proportion looking for a new job, by engagement (%) Engaged Neutral Disengaged Yes No Base: 2, cipd.co.uk/employeeoutlook

19 Employee Outlook Spring 2014 Conclusions More work needed in building confidence in senior leaders and providing progression opportunities to help retain the best Interestingly, this spring 2014 survey sees a slight increase in employees job satisfaction levels but a very slight decrease in their overall engagement levels, which have seen a slight downward trend since autumn So while employees are increasingly enjoying the work that they are doing in their day jobs, their wider experience and engagement in the workplace has reduced somewhat (our measure of engagement is made up of seven different factors, including satisfaction with role, going the extra mile, alignment to organisation purpose, relationships with colleagues, attitude to senior managers and satisfaction with line manager/advocacy). Employees perceptions of the current economic climate also show that there is still some uncertainty. While overall employees are less worried about losing their jobs and there is a decrease in organisations currently making redundancies, there is also a slight increase in those planning redundancies for the future. However, when it comes to employees personal standards of living, fewer employees this spring believe these are worsening in line with recent press reports that the cost-of-living crisis is reducing or is indeed over. 1 While overall employees are less worried about losing their jobs and there is a decrease in organisations currently making redundancies, there is also a slight increase in those planning redundancies for the future. An increase in negative perceptions of senior managers This spring sees an increase in negative overall perceptions of senior managers, with scores for confidence, trust and consultation all reducing substantially. While the economic climate has broadly been improving, the survey findings show that there is still some uncertainty we are still witnessing corporate scandals involving senior leaders in the press which are likely to be impacting on employees overall confidence and trust propensities. Employees in the public sector remain the most negative about their senior managers, with substantial decreases in this survey in senior 1 DOMINICZAK, P. (2014) Pay-rise figures show cost of living crisis is over. 16 April. Daily Telegraph. p1. See also: Larry Elliott, Guardian, p23, and Ben Chu, Independent, p54. cipd.co.uk/employeeoutlook 17

20 V This survey sees a very slight drop in job-seeking intentions compared with autumn 2013 s two-year high, but talent is still planning to be on the move compared with figures for spring 2013, winter and spring managers treating employees with respect and in employees trust and confidence in them. This is likely to be related to the current unrest and strike action going on in the public sector (NHS and teaching) in relation to pay, pensions and performance issues. Performance management and progression issues The spring 2014 survey also reveals performance management issues for many employees. Almost a third of employees believe that their current performance management systems are unfair, with a higher proportion of employees overall in the public sector believing their systems are unfair as opposed to fair. Again this is likely to be linked to the current unrest in that sector related to pay, pensions and performance. Employees are also reporting issues around progression opportunities, with more feeling that career progression is unachievable as opposed to achievable this is particularly the case in the voluntary sector. Talent still likely to be on the move This survey sees a very slight drop in job-seeking intentions compared with autumn 2013 s two-year high, but talent is still planning to be on the move compared with figures for spring 2013, winter and spring Organisations therefore need to think very carefully about creative retention strategies in order to retain their top talent as the economy picks up. In particular, this survey s results show that much more work is needed around effective and motivating performance management approaches as well as providing progression opportunities for the majority of employees, who will have seen very little movement in organisations over the last few years. Clearly more also needs to be done in order to build confidence and trust in senior leaders, who are pivotal to organisations and have been shown previously through our Employee Outlook data to have a relationship with employee job satisfaction, advocacy and jobseeking intentions. 18 cipd.co.uk/employeeoutlook

21 Employee Outlook Spring 2014 Background to the survey The CIPD has commissioned a twice-yearly survey among UK employees (including sole traders) to identify their opinions of and attitudes towards working life today, particularly during these difficult economic times. YouGov conducted the latest survey for the CIPD of 2,523 UK employees in March This survey was administered to members of the YouGov Plc UK panel of more than 350,000 individuals who have agreed to take part in surveys. The sample was selected and weighted to be representative of the UK workforce in relation to sector and size (private, public, voluntary), industry type and full-time/parttime working by gender. Size of organisation was classified in the following way: sole trader (oneperson business), micro business (2 9), small business (10 49), medium (50 249) and large (more than 250). s were sent to panellists selected at random from the base sample. The invited them to take part in a survey and provided a generic survey link. Once a panel member clicked on the link, they were sent to the survey that they were most required for, according to the sample definition and quotas. The sample profile is normally derived from census data or, if not available from the census, from industry-accepted data. Net scores refer to the proportion of people agreeing with a statement minus those disagreeing. cipd.co.uk/employeeoutlook 19

22 CIPD Outlook Series The Employee Outlook, produced in partnership with Halogen, is part of the CIPD Outlook series, which also includes the Labour Market Outlook and the HR Outlook. Drawing on a range of perspectives (and with the opportunity to compare data across our regular surveys), this triad of research enables the CIPD to offer unique insight and commentary on workplace issues in the UK. Others in the series Labour Market Outlook The Labour Market Outlook provides a quarterly update on key HR, economic and labour market statistics. The aim of the survey is to produce an industry-valued benchmark of key HR statistics that can be used by CIPD members, as well as those in government, policy and wider business circles. cipd.co.uk/labourmarketoutlook HR Outlook The HR Outlook provides valuable insight and expert commentary on the HR profession. It explores the size and shape of HR functions, comments on the capabilities of HR professionals and outlines emerging trends and future priorities. cipd.co.uk/hroutlook 20 cipd.co.uk/employeeoutlook

23 Chartered Institute of Personnel and Development 151 The Broadway London SW19 1JQ UK Tel: +44 (0) Fax: +44 (0) Website: cipd.co.uk Incorporated by Royal Charter Registered charity no Issued: May 2014 Reference: 6582 Chartered Institute of Personnel and Development 2014

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