SPRING 2012 EMPLOYEE OUTLOOK PART OF THE CIPD OUTLOOK SERIES

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1 SPRING 2012 EMPLOYEE OUTLOOK PART OF THE CIPD OUTLOOK SERIES

2 EMPLOYEE OUTLOOK PART OF THE CIPD OUTLOOK SERIES Summary of key findings 2 Job satisfaction and engagement 4 Employee attitudes towards managers 6 Focus on management development 8 Pressure at work 15 Work life balance 16 Employee attitudes and the economic downturn 18 Job-seeking 21 Conclusions 22 Background to the survey 23 cipd.co.uk/employeeoutlook 1

3 SPRING 2012 Summary of key findings Employee engagement This quarter s survey once again includes the employee engagement index made up of responses to a number of questions known to be integral to understanding the level of engagement an employee feels towards their organisation. The index shows that, while 38% of employees are actively engaged at work, the majority of respondents (59%) are neutral neither engaged nor disengaged. Just 3% of respondents are disengaged. Job satisfaction Overall, job satisfaction has risen this quarter to a high of +47, from +41 in winter and +38 in autumn Employees in the voluntary and the private are equally most satisfied with their jobs (47%), with public employees not that far behind (45%). All of these scores show notable increases on previous quarters, but particularly in the public. In contrast to last quarter, job satisfaction for the youngest workers aged is lowest at +25. Job satisfaction increases as an employee s age increases, with those employees of 55+ being the most satisfied with their jobs (+61). Employee attitudes towards managers Employees continue to be generally positive in their attitudes towards their immediate line managers. In fact, every measure this quarter is more positive than the last two quarters, with particular improvements in perceptions of managers commitment to the organisation and giving employees the resources they need to do their jobs. Overall, employees are most likely to feel that their managers are always/usually committed to their organisation (74%) and treat them fairly (71%). On the other hand, employees are least likely to say that their manager always/usually coaches them on the job (29%), discusses their training and development needs (41%) or gives them feedback on how they are performing (45%). Employee perceptions of their senior managers Overall, respondents are less positive in their attitudes towards their senior managers compared with their immediate managers; however, this quarter sees some noticeable improvements. Every item regarding directors/ senior managers shows an improvement, with particularly strong increases in trust (+6 from 9) and confidence (+11 from 2). The only score now which remains negative is leaders consultation with employees regarding important decisions ( 22), although this score shows an improvement from previous quarters. Communication and advocacy Over half of respondents (53%) feel fully or fairly well informed about what is happening within their organisations; this has stayed fairly constant over the last few quarters. When it comes to satisfaction with opportunity to feed views upwards, this quarter shows improvements. Overall, the net satisfaction rate is +16 (+12 last quarter), with scores highest in the voluntary (+31) and lowest in the public (+5), although this is higher than last quarter ( 7). Over half of the sample (54%) would be very likely or likely to recommend their organisation as an employer to others (48% last quarter). Pressure at work The proportion of staff saying they are under excessive pressure either every day or once or twice a week has edged up since last quarter, with 38% saying they are under excessive pressure either every day or once or twice a week. This compares with 37% for the previous three months. employees are significantly more likely to report they are under excessive pressure than employees in the other two main s, with 47% saying they are under excessive pressure either every day (17 %) or once or twice a week (30%). Work life balance The proportion of employees agreeing or strongly agreeing they achieve the right work life balance has increased slightly since the last quarter to 61% from 59%, with little difference between the three main s although voluntary staff are most likely to agree they achieve work life balance (63%). There is a strong association between employees who agree they achieve the right balance between their work and home lives and respondents who are engaged, according to the CIPD s employee engagement index. Almost eight in ten employees who are engaged agree or strongly agree they achieve the right balance between their work and home lives, compared with just 51% of employees who have neutral engagement (they are neither engaged nor disengaged), and just 11% of workers who are disengaged. 2 cipd.co.uk/employeeoutlook

4 EMPLOYEE OUTLOOK Employee attitudes and the economic downturn The proportion of employees saying it is likely or very likely they could lose their job as a result of the economic downturn has fallen to 18% from 21% for the previous quarter. There has been very little change in how employees view their chances of finding a new job if they are made redundant, with most respondents remaining downbeat about their potential employment prospects. In all, 9% of employees think it would be easy or very easy to find a new job if they lost their current position, almost unchanged from the previous quarter (10%). employees are most optimistic, with 10% thinking it would be easy or very easy to find a new job compared with 12% for the previous quarter. About a third of employees (35%) report their organisation has made redundancies as a result of the economic downturn, up very slightly from last quarter (34%). The proportion of public staff saying their organisation has made redundancies has remained static at 57%. In all, 28% of private employees report their organisation has made redundancies, the same as last quarter. Standard of living Employees are still much more likely to say their standard of living has worsened than improved over the previous 12 months, but are slightly less negative compared with last quarter. In all, 9% of respondents say their standard of living has improved over the last six months compared with 31% saying their standard of living has worsened (net balance 22). This compares to a net balance of 28 for the previous quarter. Job-seeking A fifth (20%) of respondents are looking for a new job with a different employer. As with the results of last quarter, respondents from the voluntary are most likely to be seeking out new opportunities (30%), with those from the private least likely to be (19%). This quarter, those who are most likely to be looking for a new job are year-olds (35%), taking over the top spot from the year-olds last quarter. Employees aged 55 and above remain the least likely to be job-hunting (11%). The proportion of workers saying their organisation is planning to make redundancies has reduced slightly to 14% from 16% for the previous quarter. One in three (31%) public workers report their organisation is planning redundancies, a significant decrease over the quarter from 38%. One in ten (9%) private employees say their employer is planning redundancies, virtually unchanged from the previous quarter (10%). cipd.co.uk/employeeoutlook 3

5 SPRING 2012 Job satisfaction and engagement We have again included an employee engagement index made up of responses to a number of questions known to be integral to understanding the level of engagement an employee feels towards their organisation (see box below). The index shows that slightly more employees are actively engaged at work this quarter (38% compared with 36% in winter ). However, the majority of respondents (59%) remain neutral neither engaged nor disengaged. Just 3% of respondents are disengaged. Table 1: The extent to which employees are engaged at work, by gender and main s (%) All Men Women Engaged Neutral Disengaged Table 2: Are you currently looking for a new job with a different organisation? (%) All employees Engaged Neutral Disengaged Yes No The employee engagement index These questions asked the extent to which an employee: takes on more work to help colleagues works more hours than is paid or contracted to feels under excessive pressure in their job has positive relationships with colleagues achieves what they feel to be the right home/work life balance is satisfied with the content of their job role is satisfied with their job overall is satisfied with their relationship with their line manager or supervisor thinks their employer treats them fairly has a clear knowledge of the purpose of their organisation is motivated by that purpose feels their organisation gives them the opportunity to learn and grow has confidence in the directors/senior managers of their organisation trusts the directors/senior managers of their organisation is likely to recommend their organisation as an employer. Methodology These variables were then compared with each other using factor analysis to compare the level of overlap that existed between them. In doing so, there emerged seven distinct groups of variables which were contributing different elements to overall engagement. All variables were then aggregated together to give an overall score. So as to not overweight any individual element in the calculation of the index, where more than one question added to the same indicator of engagement, each response was downweighted (if there were four questions in a category, for example, they were each given a weighting of 0.25 so the group as a whole totalled a value of one-seventh of the index). The total score was then indexed between 1 and 100 using a coefficient. 4 cipd.co.uk/employeeoutlook

6 EMPLOYEE OUTLOOK Women are significantly more likely to be engaged than men. respondents are most likely to be engaged (61%), with an increase of 9% since last quarter, followed by those in the private (38%) and public s (36%). The engagement score for the public has increased by 5% this quarter. There is a strong link between employees who are looking for a new job and employee engagement. Of the 38% of employees who are engaged, just 7% are looking for a new job, compared with a survey average of 20%. In contrast, 26% of those respondents with neutral engagement are looking for a new job, as are 71% of disengaged staff. That is a 13% increase this quarter in the proportion of disengaged employees looking for a new job. Overall, job satisfaction has risen again this quarter to a high of +47, from +41 in winter and +38 in summer However, the overall score is made up of several differences across s. Employees in the voluntary and the private are equally most satisfied with their jobs (47%), with public employees not that far behind (45%). All of these scores show noticeable increases on previous quarters, but particularly in the public. See Table 3. In contrast to last quarter, job satisfaction for the youngest workers aged is lowest at +25. Job satisfaction increases as an employee s age increases, with those employees aged 55+ being the most satisfied with their jobs (+61). See Table 4. The gap between the job satisfaction of men (+44) and women (+51) is similar this quarter (winter : men (+38), women (+46)). Employees working for micro or small organisations continue to be the most satisfied (+65 and +51 respectively), while those in large organisations continue to be the least satisfied (+38), though with some improvement on last quarter. Regional differences showed last quarter that employees in Wales were the most satisfied with their jobs. This quarter the most satisfied employees are located in the East Midlands (53%), followed by employees in the East of England (52%). Table 3: Employee net satisfaction, by and size of organisation Spring 2012 Winter Autumn 2011 Overall firm or company firm of company Micro businesses Small businesses Medium businesses Large businesses Table 4: Employee net satisfaction, by age Spring 2012 Winter Autumn Table 5: Employee net satisfaction, by geographic region Spring 2012 Winter North-east of England North-west of England Yorkshire East Midlands West Midlands East of England London South-east of England South-west of England Wales Scotland cipd.co.uk/employeeoutlook 5

7 SPRING 2012 Employee attitudes towards managers Employees continue to be generally positive in their attitudes towards their immediate line managers. In fact, every measure this quarter is more positive than the last two quarters, with particular improvements in perceptions of managers commitment to the organisation and giving employees the resources they need to do their jobs. Overall, employees are most likely to feel that their managers are always/usually committed to their organisation (74%) and treat them fairly (71%). On the other hand, employees are least likely to say that their manager always/ usually coaches them on the job (29%), discusses their training and development needs (41%) or gives them feedback on how they are performing (45%). So clearly, managers need to do some more work around personal development to boost motivation, particularly important in the current environment. As trust in senior leaders is less than glowing (see below), it is interesting that nearly two-thirds (61%) of employees believe their line managers are open and honest. This can often have a mitigating effect. Employee perceptions of their senior managers Overall, respondents are less positive in their attitudes towards their senior managers compared with their immediate managers; however, this quarter sees some noticeable improvements. Every item regarding directors/ senior managers shows an improvement, with particularly strong increases in trust (+6 from 9) and confidence (+11 from 2). The only score now which remains negative is leaders consultation with employees regarding important decisions ( 22), although this score shows an improvement from previous quarters. Table 6: To what extent does your immediate supervisor/manager or boss always or usually do each of the following? (%) Spring 2012 Winter Autumn 2011 Consults me on matters of importance to me Discusses my training and development needs with me Recognises when I have done a good job Makes me feel my work counts Gives me feedback on how I am performing Is open and honest Is supportive if I have a problem Keeps me in touch with what s going on Makes clear what is expected of me Listens if I have a suggestion to make Treats me fairly Is committed to my organisation Makes sure I have the resources to do the job Coaches me on the job cipd.co.uk/employeeoutlook

8 EMPLOYEE OUTLOOK Table 7: Net agree scores, by (winter and autumn 2011) (%) They consult employees about important decisions. Spring 2012 Winter Spring 2012 Winter Spring 2012 Winter They treat employees with respect I trust them I have confidence in them They have a clear vision of where the organisation is going When considering differences, respondents from the voluntary are most positive, with sizable improvements in scores relating to trust (+28 from +4), confidence (+28 from +10) and organisational vision (+43 from +25). There have also been notable improvements in both the private and public s. In the private the biggest improvements are again around trust (+13 from +1), confidence (+19 from +9) and organisational vision (+35 from +27). Although most items remain negative in the public, there have been noticeable improvements in consultation ( 26 from 43), trust ( 20 from 47) and confidence ( 16 from 41), with organisational vision turning to a positive (+6 from 10). When it comes to satisfaction with opportunity to feed views upwards, this quarter shows improvements. Overall, the net satisfaction rate is +16 (+12 last quarter), with scores highest in the voluntary (+31) and lowest in the public (+5), although this is higher than last quarter ( 7). More than half of the sample (54%) would be very likely or likely to recommend their organisation as an employer to others (48% last quarter). Those working in the voluntary are most likely to recommend their employer (67%), compared with 55% in the private and 49% in the public. Communication and advocacy Over half of respondents (53%) feel fully or fairly well informed about what is happening within their organisations; this has stayed fairly constant over the last few quarters. Respondents from the voluntary are still the most likely to feel fully or fairly well informed (62%), with an increase in this score compared with previous quarters. respondents feel least likely to be informed (51%), although this has shown a positive increase since last quarter. Table 8: How well informed do you feel about what is happening within your organisation? (% who feel fully or fairly well informed) Spring 2012 Winter Autumn 2011 Overall cipd.co.uk/employeeoutlook 7

9 SPRING 2012 Focus on management development In all, nearly three in ten (28%) employees have direct responsibility for managing one or more people. More than a third of men (35%) and about a fifth of women (21%) have people management responsibility. See Table 9. In terms of ratio of managers to employees, there are most managers in the voluntary, with 35% of respondents reporting they manage one or more people, followed by the public (30%) and the private (27%). Effective management skills Respondents were asked how important different skills are in contributing to their effectiveness in their management role. Out of a structured list, respondents were most likely to rate people management skills (62%) as very important, followed by operational management skills (47%) and organisation/ planning and project management skills (43%). Surprisingly, they were least likely to rate managing finances/budgets as very important (28%). See Table 10. There were no significant differences for the ratings for people management skills, operational management skills and technical skills. There were, however, for organisation/ planning and project management skills, with those in the voluntary (47%) and the private (44%) rating these as more effective than those in the public (36%). Managing finances and budgets was seen to be less important by public respondents (18%) than by private and voluntary respondents (31% alike). Monitoring of work processes was seen to be more important in the private (38%) than in the public (32%) and voluntary (24%). Gender differences showed that female managers are more likely to rate people management skills as very important (72%) than male managers (57%) and the reverse was true for technical expertise (men: 42%; women: 31%). Table 9: Do you directly manage one or more people at work? (%) All Men Women Yes No Table 10: How important do you consider each of the following skills as contributing to your effectiveness in your management role? Score for very important (%) All managers People management skills 62 Operational management skills 47 Technical expertise 38 Organisation/planning/project management skills 43 Managing finances/budgets 28 Monitoring of work process 36 8 cipd.co.uk/employeeoutlook

10 EMPLOYEE OUTLOOK People management practice There is a significant contrast between how managers say they manage people and the views of employees towards their managers. For example, 50% of managers say they meet each person they manage on a weekly basis; however, just 17% of employees report their manager meets them each week. Employees are most likely to say that their manager meets them less frequently than once a month, with 30% saying this is the case compared with just 17% of managers that report they meet their employees less frequently than once a month. See Tables 11 and 12. The discrepancies in views between managers and employees also extend to perceptions of the time spent per month by managers talking to the individuals they manage about their workload, objectives and any other work-related issues. Just 35% of managers say they talk individually to the people they manage for 30 minutes or less each month compared with 62% of employees that say this is the case. Almost a third of managers (30%) say they will spend minutes per month talking to each person they manage compared with just 20% of employees that say this is the case. See Tables 13 and 14. Table 11: How often managers meet with each person they manage to discuss their workload, meeting objectives and other work-related issues (% managers) All Weekly Twice a month Once a month Less frequently than once a month Never Table 12: How often employees report that their direct manager meets with them to discuss their workload, meeting objectives and any other work-related issues (% employees) All Weekly Twice a month Once a month Less frequently than once a month Never Not applicable I don t have a manager Table 13: How much time overall per month managers spend talking to each person they manage about their workload, objectives and any other work-related issues (% managers) All 30 minutes or less minutes hours hours More than 3 hours cipd.co.uk/employeeoutlook 9

11 SPRING 2012 Table 14: How much time overall per month managers spend talking to each person they manage about their workload, objectives and any other work-related issues (% employees) All Men Women 30 minutes or less minutes hours hours More than 3 hours Managers and employees also hold contrasting views on what issues they typically talk about when they do meet up. The areas where there is most agreement between what managers say they always or sometimes discuss with their staff and what employees say is discussed concern telling staff what to do, listening and discussing meeting performance objectives. The biggest gaps between what managers say they always/ sometimes talk about with their staff and what employees report their managers always/sometimes discuss with them concern the extent managers coach staff and discuss their development and career progression. More than nine out of ten managers say they sometimes/always coach the people they manage when they meet to discuss their workload, objectives and any other work-related issues, compared with just four in ten employees reporting that this is the case. Three-quarters of managers say they always or sometimes discuss individuals development and career progression, compared with just 38% of employees saying this happens. The other topics where managers and employees views are least aligned are over the extent managers always or sometimes: give praise or recognition; joint problem-solve; discuss ideas put forward to improve products or services; and ask after employees well-being in the workplace. See Tables 15 and cipd.co.uk/employeeoutlook

12 EMPLOYEE OUTLOOK Table 15: How often managers talk about any of the following issues when they meet with the employees they manage (% managers) Table 16: According to employees, how often their managers spend talking to them about the following matters (% employees) All Men Women Meeting objectives Always Sometimes Tell the individual what to do Always Sometimes Provide feedback on performance Always Sometimes Give praise, recognition Always Sometimes Joint problem-solve Always Sometimes Coach them Always Sometimes Discuss their development/career progression Always Sometimes Listen Always Sometimes Discuss ideas put forward to improve products or services Always Sometimes Discuss their well-being Always Sometimes All Men Women Meeting objectives Always Sometimes Tell the individual what to do Always Sometimes Provide feedback on performance Always Sometimes Give praise, recognition Always Sometimes Joint problem-solve Always Sometimes Coach them Always Sometimes Discuss their development/career progression Always Sometimes Listen Always Sometimes Discuss ideas put forward to improve products or services Always Sometimes Discuss their well-being Always Sometimes cipd.co.uk/employeeoutlook 11

13 SPRING 2012 Manager behaviour and the link to engagement The survey finds that the frequency with which managers discuss particular issues relating to employees work and wellbeing is linked to employee engagement. The frequency with which managers always or sometimes give praise and recognition, discuss employees development and career progression and ideas put forward to improve products or services have the strongest correlation with employee engagement. The next most significant links with engagement are the frequency with which managers joint problem-solve with their employees and ask after their wellbeing. Coaching by managers is also strongly associated with employee engagement. Table 17: According to employees, how often managers spend talking to employees about the following matters and the link to employee engagement (% employees) Meeting objectives All Engaged Neutral Disengaged Always Sometimes Tell the individual what to do Always Sometimes Provide feedback on performance Always Sometimes Give praise, recognition Always Sometimes Joint problem-solve Always Sometimes Coach them Always Sometimes Discuss their development/career progression Always Sometimes Listen Always Sometimes Discuss ideas put forward to improve products or services Always Sometimes Discuss their well-being Always Sometimes cipd.co.uk/employeeoutlook

14 EMPLOYEE OUTLOOK Satisfaction with managers There is significant contrast in views between how satisfied managers think the employees they manage are with them as a manager and how satisfied employees really are with their direct manager. In all, 80% of managers think their employees are either satisfied (65%) or very satisfied (15%) with them as a manager. See Table 18. However, employees report generally much lower levels of satisfaction with their immediate manager. In all, 58% of employees are satisfied (34%) or very satisfied (24%) with their manager. Employees in the voluntary and public s are more likely to report they are satisfied or very satisfied with their manager than those in the private. See Table 19. Satisfaction with line management and employee engagement There is a strong link between employee satisfaction with their line manager and employee engagement. In all, 86% of engaged employees are satisfied or very satisfied with their manager compared with just 43% of those with neutral engagement and just 5% of disengaged employees. Table 18: How satisfied managers think the employees they manage are with them as a manager (% managers) All Men Women Very satisfied Satisfied Neither satisfied nor dissatisfied Dissatisfied Very dissatisfied Table 19: How satisfied employees are with their direct manager (% employees) All Men Women Very satisfied Satisfied Neither satisfied nor dissatisfied Dissatisfied Very dissatisfied Table 20: The link between employee satisfaction with their direct manager and employee engagement (% employees) All Engaged Neutral Disengaged Very satisfied Satisfied Neither satisfied nor dissatisfied Dissatisfied Very dissatisfied cipd.co.uk/employeeoutlook 13

15 SPRING 2012 Training and development When it comes to the training and development managers have had to help them manage others, two-thirds (66%) highlight on-the-job learning and almost a third (32%) have been to short workshops focused on key issues. Other popular development includes classroom-based courses (30%), mentoring (23%) and management development courses resulting in a qualification (23%). Respondents from the public are more likely than those in the private and voluntary s to have undertaken the different development options, except for short workshops and on-the-job learning, which managers in the voluntary are more likely to have undertaken. Those in the private are most likely to say they have received no people management training or development. See Table 21. When it comes to differences, managers in the private are most likely to cover the topics of teamworking and communications and least likely to include absence management. Managers in the public are most likely to cover the topics of teamworking, communications and leadership/core people management and least likely to include budget and finance management. Finally, managers in the voluntary are most likely to cover topics on communications and leadership/core people management skills and least likely to include absence management. When asked about the specific topics covered by their management development, teamworking (65%), communication skills (62%) and leadership/core people management skills (62%) are most common. The least common topic to be covered is absence management (27%), with less than a third of managers receiving development in this area. See Table 22. Table 21: What, if any, training or development have you had in order to help you lead or manage others? (% managers) Management development course resulting in a management qualification Classroom-based course lasting at least a day 30 Short workshop/s focused on key issues 32 One-to-one coaching 20 Mentoring 23 Combination of classroom and distance learning 12 E-learning online course 17 On-the-job learning 66 Other 5 None Table 22: What topics did your management development cover? (% managers) Leadership/core people management skills 62 Absence management 27 Conflict management/mediation 42 Budget and finance management 30 Communication skills 62 Project management 34 Teamworking 65 Delegation 44 Other cipd.co.uk/employeeoutlook

16 EMPLOYEE OUTLOOK Pressure at work The proportion of staff saying they are under excessive pressure either every day or once or twice a week has edged up since last quarter, with 38% saying they are under excessive pressure either every day or once or twice a week. This compares with 37% for the previous three months. employees are significantly more likely to report they are under excessive pressure than employees in the other two main s, with 47% saying they are under excessive pressure either every day (17 %) or once or twice a week (30%). This has increased from last quarter, when 42% reported being under excessive pressure either every day (14%) or once or twice a week (28%). The proportion of private employees saying they are under excessive pressure, either every day or once or twice a week, has remained virtually static at 37% (36% last quarter). twice a week (18%). Last quarter, 34% of voluntary employees said they were under excessive pressure either every day or once or twice a week. Men are significantly more likely than women to report being under excessive pressure at work (see Table 23). The survey finds that the smaller the organisation worked for, the less likely employees are to report being under excessive pressure. Just 29% of employees working in micro organisations say they are under excessive pressure either every day or once or twice a week, compared with 38% of mediumsized organisations and 46% of large employers. The selfemployed are particularly unlikely to report being under excessive pressure, with just 24% saying they are under excessive pressure either every day or once or twice a week. However, there has been a fall in reported pressure in the voluntary. In all, 31% of staff in this say they are under excessive pressure either every day (13%) or once or Table 23: Proportion of employees saying they are under excessive pressure at work... (%) All Men Women Every day Once or twice a week Once or twice a month Less frequently than once or twice a month Never Table 24: Proportion of employees saying they are under excessive pressure at work, by size of organisation worked for (%) Sole traders Micro firm Small Mediumsized organisation Large organisation Every day Once or twice a week Once or twice a month Less frequently than once or twice a month Never cipd.co.uk/employeeoutlook 15

17 SPRING 2012 Work life balance The proportion of employees agreeing or strongly agreeing they achieve the right work life balance has increased slightly since the last quarter to 61% from 59%, with little difference between the three main s although voluntary staff are most likely to agree they achieve work life balance (63%). Men are significantly less likely to agree they achieve the right work life balance (57%) than women (64%). See Table 25. Middle managers are the category of employee least likely to say they achieve the right work life balance, with just 51% agreeing. This compares with 58% of board-level directors that agree they achieve the right work life balance and a similar proportion (58%) of junior managers and supervisors. In all, 67% of employees in non-managerial positions agree they achieve the right work life balance. There is a strong association between employees who agree they achieve the right balance between their work and home lives and respondents who are engaged, according to the CIPD s employee engagement index. Almost eight in ten employees who are engaged agree or strongly agree they achieve the right balance between their work and home lives, Table 25: Proportion of employees agreeing they achieve the right balance between their work and home lives (%) All Men Women Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree Not sure Not applicable Table 26: Proportion of engaged or disengaged employees who agree or disagree they achieve the right balance between their work and home lives (%) Engaged Neutral Disengaged Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree Not sure Not applicable cipd.co.uk/employeeoutlook

18 EMPLOYEE OUTLOOK compared with just 51% of employees who have neutral engagement (they are neither engaged nor disengaged), and just 11% of workers who are disengaged. In all, 37% of employees agree or strongly agree their organisation provides them with support to help them manage their work life balance, with voluntary employees most likely to agree this is the case (49%), followed by those in the public (38%) and those in the private (36%). See Table 27. Respondents that agree their organisation provides support to help them manage their work life balance are much more likely to also agree that they trust the senior management team, that they have confidence in their senior managers and to agree that senior managers treat employees with respect. Almost four in ten (41%) employees agree their manager provides support to help them manage their work life balance. employees are most likely to agree this is the case (52%), with private staff least likely to (39%). See Table 28. Table 27: The proportion of employees agreeing their organisation provides them with support to help them manage their work life balance (%) All Men Women Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree Not sure Not applicable Table 28: The proportion of employees agreeing their manager provides them with support to help them manage their work life balance (%) All Men Women Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree Not sure Not applicable cipd.co.uk/employeeoutlook 17

19 SPRING 2012 Employee attitudes and the economic downturn The proportion of employees saying it is likely or very likely they could lose their job as a result of the economic downturn has fallen to 18% from 21% for the previous quarter. There has been a decrease in the proportion of public workers saying it is likely they could lose their jobs to 24% from 27% for the previous quarter. There has also been a slight fall in the proportion of private workers saying it is likely they could lose their jobs to 17% from 19%. The proportion of voluntary workers reporting it is likely they could lose their jobs has fallen significantly to 15% from 25% for the previous quarter. There has been very little change in how employees view their chances of finding a new job if they are made redundant, with most respondents remaining downbeat about their potential employment prospects. In all, 9% of employees think it would be easy or very easy to find a new job if they lost their current position, almost unchanged from the previous quarter (10%). employees are most optimistic, with 10% thinking it would be easy or very easy to find a new job compared with 12% for the previous quarter. workers are also less optimistic about their job prospects if they lost their current job, with 8% saying it would be easy or very easy to find a new job in contrast to 10% for the last quarter. Just 6% of public workers think it would be easy to find a new job, although this was a slight increase from 4% last quarter. About a third of employees (35%) report their organisation has made redundancies as a result of the economic downturn, up very slightly from last quarter (34%). The proportion of public staff saying their organisation has made redundancies has remained static at 57%. In all, 28% of private employees report their organisation has made redundancies, the same as last quarter. Table 29: Proportion of employees saying it is likely or unlikely that they could lose their jobs as a result of the economic downturn (%) All Very likely Likely Neither likely nor unlikely Unlikely Very unlikely Don t know Table 30: Proportion of employees thinking it would be easy or difficult to find another job if they were to lose their current job (%) All Very easy Easy Neither easy nor difficult Difficult Very difficult Don t know cipd.co.uk/employeeoutlook

20 EMPLOYEE OUTLOOK The proportion of workers saying their organisation is planning to make redundancies has reduced slightly to 14% from 16% for the previous quarter. One in three (31%) public workers report their organisation is planning redundancies, a significant decrease over the quarter from 38%. One in ten (9%) private employees say their employer is planning redundancies, virtually unchanged from the previous quarter (10%). In all, 12% of voluntary workers report their employer is planning redundancies, compared with 17% in winter There has been a slight reduction in the proportion of employees reporting their organisation has cut back on training to 23% from 24% for the previous quarter. and voluntary respondents are least likely to say this is the case (17% and 19% respectively), with those in the public most likely to report training cut-backs (44%). In all, 43% of employees report their organisation has frozen pay, unchanged from the last quarter. respondents are most likely to report a pay freeze, with 72% saying this is the case a slight fall from 75% for the previous quarter. The proportion of private employees reporting a pay freeze has edged up to 34% from 33%, while 41% of voluntary respondents report a pay freeze compared with 49% in the winter report. The proportion of respondents saying their employer has reduced contributions to employee pensions has increased slightly overall to 8% from 7% last quarter. The proportion of public workers reporting cuts to pensions is 14% compared with 15% last quarter. The survey asks a number of questions around the issue of relationships and well-being to gauge the extent to which the economic downturn is impacting on day-to-day working life. Almost a fifth (19%) of employees say there has been an increase in conflict at work between colleagues, a slight increase from 17% last quarter. In all, 16% of employees report an increase in bullying by line managers, unchanged from last quarter. In all, 51% of respondents have noticed an increase in stress in the workplace, again no change from the previous quarter. The proportion of employees saying they have noticed an increase in people taking time off sick has increased very slightly to 24% from 23%. Table 31: In which ways, if at all, has your organisation been affected by the economic downturn? (%) All It has made redundancies It is planning to make redundancies It has cut back on training It has cut back on the number of hours that people work It has increased the number of hours that people work It has frozen pay It has cut pay It has frozen recruitment It has reduced the amount contributed to employee pensions It has reduced employee benefits/perks It has been affected in some other way It has not been affected by the economic downturn Don t know Table 32: As a result of the economic downturn, have you noticed any of the following? (%) All An increase in conflict at work between colleagues An increase in bullying by line managers An increase in stress An increase in people taking time off sick None of these cipd.co.uk/employeeoutlook 19

21 SPRING 2012 Table 33: Proportion of employees saying their standard of living has improved, stayed the same or worsened over the last six months (%) Spring 2012 Winter Autumn 2011 Summer 2011 Improved Stayed the same Worsened Net balance Table 34: Proportion of employees saying their standard of living has improved, stayed the same or worsened, by (%) Spring 2012 Winter Autumn 2011 Improved Stayed the same Worsened Net balance Standard of living Employees are still much more likely to say their standard of living has worsened than improved over the previous six months, but are slightly less negative compared with last quarter. In all, 9% of respondents say their standard of living has improved over the last six months compared with 31% saying their standard of living has worsened (net balance 22). This compares with a net balance of 23 for the previous quarter. See Table 33. and voluntary employees are marginally more positive when assessing their standard of living over the last six months compared with the previous quarter; however, public respondents are more downbeat over their living standards. See Table cipd.co.uk/employeeoutlook

22 EMPLOYEE OUTLOOK Job seeking A fifth (20%) of respondents are looking for a new job with a different employer. As with the results for last quarter, respondents from the voluntary are most likely to be seeking out new opportunities (30%), with those from the private least likely to be (19%). This quarter, those who are most likely to be looking for a new job are year-olds (35%), taking over the top spot from the year-olds last quarter. Employees aged 55 and above remain the least likely to be job-hunting (11%). Senior managers just below board level are the most likely to be looking for a new job (25%) in terms of management level. With regard to length of service, those employees who have been with their employer for between six months and two years are most likely to be actively looking for a new job (37%). Finally, as might be expected, those that report being under pressure every day in their current job are the most likely to be actively looking for a new job (38%). Table 35: Are you looking for a new job with a different employer? (%) Spring Winter Autumn Table 36: Proportion looking for a new job, by (%) Spring 2012 Winter Autumn Table 37: Proportion looking for a new job, by age (%) Spring 2012 Winter cipd.co.uk/employeeoutlook 21

23 SPRING 2012 Conclusions Employee engagement has edged up slightly from the last quarter according to our engagement index, despite the ongoing economic gloom highlighted by the recent return to recession announced by the Office for National Statistics in April. Almost four in ten employees (38%) are engaged, a rise from 36% in the last quarter. Our employee engagement index is made up of a range of factors that CIPD research has shown impacts on employee engagement, including attitudes to senior managers and line managers, how positive employees report their relationships are with colleagues, attitudes to work life balance, workload and perceptions of fair treatment. Consequently it is difficult to pinpoint reasons for improvements in employee engagement; however, one area that has seen a significant improvement in this quarter s survey has been employee attitudes to senior managers an area that has been consistently negative since we began running the survey in spring There have been some noticeable improvements, with strong increases in trust and confidence in senior managers, particularly among voluntary employees, but also among private and public staff. Employees are still more likely to disagree than agree that senior managers consult employees about important decisions, but this is less pronounced than last quarter. One possible reason for this positive change in attitudes to senior managers could be the increasingly uncertain economic backdrop and rising unemployment, which might mean that employees are more likely to be more sympathetic towards senior management teams who are being seen to lead in very turbulent times. Even in the public, which is facing unprecedented change, including pay freezes, pension reform and job cuts, there has been a softening in negative attitudes to senior managers. This might be partly due to employees feeling that their senior managers have limited room to manoeuvre in light of government deficit reduction plans and/or because public leaders are gradually getting better at communicating and consulting with staff as attempts to transform public services continue. Just as important to employee engagement as attitudes to senior managers is how employees feel about their direct line manager. This quarter s Employee Outlook survey includes a focus section on line management capability and development to explore what aspects of management behaviour support employee engagement. This finds a significant contrast in how managers rate themselves as managers and how they are rated by their employees. It also finds significant differences in perceptions between managers and employees over how often they meet one to one, and what issues they commonly talk about during these discussions. The biggest gaps between what managers say they always/ sometimes talk about with their staff and what employees report their managers always/sometimes discuss with them concern the extent managers coach staff and discuss their development and career progression. More than nine out of ten managers say they sometimes/always coach the people they manage when they meet to discuss their workload, objectives and any other work-related issues, compared with just four in ten employees reporting that this is the case. Threequarters of managers say they always or sometimes discuss individuals development and career progression, compared with just 37% of employees saying this happens. The other topics where managers and employees views are least aligned are over the extent managers always or sometimes: give praise or recognition; joint problem-solve; discuss ideas put forward to improve products or services; and ask after employees well-being in the workplace. These differences in views matter because the survey finds a significant link to employee engagement where employees report that managers always or sometimes discuss these issues. Perhaps not surprisingly, the survey also finds that there is a big difference between line managers, and employees views over how satisfied employees are with their managers. Eight out of ten managers believe their employees are either satisfied or very satisfied with them as a manager; however, just 58% of employees report this is the case. Again there is a strong link between employees who are satisfied with their direct manager and those who are engaged. Consequently, efforts to improve employee engagement will be fatally undermined unless employers place an emphasis on building management capability at all levels. Increasingly this is about leadership skills rather than management. The term leadership is often used almost interchangeably with management, but leadership is different: management tends to be thought about as using rational thinking, planning and execution to achieve specific work outcomes; leadership tends towards the more emotional aspects of helping people to deliver and is more closely tied to individual personality and authenticity. CIPD research into line management and 22 cipd.co.uk/employeeoutlook

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