SEEK Intelligence Survey of Employee Satisfaction and Motivation in New Zealand

SEEK Intelligence 2004 Survey of Employee Satisfaction and Motivation in New Zealand The second SEEK Intelligence Survey of Employee Satisfaction and Motivation in New Zealand has collected responses from over 2200 participants about how they view their work. This year, the research has been enhanced with additional investigation into New Zealand workforce issues such as the quality of management, organisational culture and the importance of different aspects of employment. It is clear that while New Zealand workers may be generally feeling more positive than last year, a severe lack of confidence in their managers continues to be a significant problem. Across all organisations, 60% of New Zealand employees say that their management does not inspire trust, and 62% believe that their management is not open and honest. The results are all the more startling for New Zealand companies, given that the quality of management is ranked as the most important factor people consider when looking for a job. In the middle of a buoyant economy and with employment at high levels, the significant challenge for businesses will not just be finding new talent in a tightening market, but retaining the high performing staff that they currently have. According to the survey response, the company managers who are open and communicate well, who support their words with action, and who inspire trust, will be best placed to retain and attract skilled and talented staff in the current environment. It is also important to note that the survey responses were collected from a broad online audience of both active and passive jobseekers, in current employment. 70% are looking for a new full-time job at a time when staff retention and satisfaction is increasingly becoming a source of important competitive advantage for New Zealand organisations. 2004 Survey of Employee Satisfaction and Motivation in New Zealand 2004 SEEK (NZ) Limited Thanks for the survey I wish the actual companies and managers would open their eyes to the results and act upon them! SEEK Jobseeker 1

2004 Survey of Employee Satisfaction and Motivation in New Zealand 2004 SEEK (NZ) Limited 2004 Survey of Employee Satisfaction and Motivation in New Zealand Table of contents Employment in New Zealand Security and Happiness Satisfaction Job Security 3 Satisfaction Happiness 4-6 The New Zealand Workplace Organisational and Management culture Organisational culture 7-8 Management culture 9 Satisfaction and Motivation Love and Hate What employees love about their job 10 What employees hate about their job 11 Employee loves/hates - by industry 12-13 Seeking The Perfect Job What matters the most - factors important to jobseekers 14 Important factors by industry 15-16 Management Qualities What management qualities are valued? 17 What attracts candidates? Importance of different components in a job ad 18 Respondent Profile Employment status; type of work; tenure; and age 19 About The Survey 20 APPENDIX Appendix 1: Chart of job security - by industry 21 Appendix 2: Chart of happiness/unhappiness - by industry 22 Appendix 3: Table of what employees love about their job - by age 23 Appendix 4: Table of what employees hate about their job - by age 23 Appendix 5: Chart of importance of factors when looking for a new job - by age 24 2

EMPLOYMENT IN NEW ZEALAND Security and Happiness Satisfaction - Job Security In the middle of a buoyant employment market, it is not surprising that the overall feeling of security among employees has increased over the last twelve months. Job security today, compared to 12 months ago This year, more people felt more secure than less secure in their jobs, compared to 12 months ago. (For full security by industry list please refer to Appendix 1) 2003 2004 Less secure 31% 20% Abouot the same 53% 58% More secure 15% 22% 2004 Survey of Employee Satisfaction and Motivation in New Zealand 2004 SEEK (NZ) Limited I d rather work for a lower salary but better or known job-security, than a higher salary with wobbly job-security. SEEK Jobseeker 3

2004 Survey of Employee Satisfaction and Motivation in New Zealand 2004 SEEK (NZ) Limited Satisfaction - Happiness Happiness in the current job A formula for happiness? Not surprisingly, employees who feel less secure in their job are also less likely to be happy in their job. 60% of people who feel less secure are unhappy. 44% of NZ employees are unhappy in their current job... 2003 2004 Very unhappy 15% 13% Unhappy 34% 31% Neutral 27% 29% Happy 17% 22% Very happy 8% 5% Happiness in the current job - by job security less secure about the same more secure Unhappy 60% 44% 28% Neutral 24% 33% 24% Happy 16% 23% 49% The happiest industry? Employees in some industries are happier than others. People working in Media are the happiest in their jobs, while those in Government are the most unhappy. Happy top 5 Unhappy top 5 Media 39% Government 49% Healthcare 35% Retail/Consumer products 48% Consulting 33% Trades/Personal services 48% Financial/Banking/Insurance 32% Accounting 47% Education/Science 30% IT/Technical 47% (For a chart of happiness by industry please refer to Appendix 2) 4

Tenure Length of tenure is no guarantee of a happy match between company and employees, as employees who have been with a company for longest, seem to be the most unhappy. Happiness in the current job - by length of employment 2004 Survey of Employee Satisfaction and Motivation in New Zealand 2004 SEEK (NZ) Limited Does money buy happiness? It appears the jury is out on whether remuneration is the key to job happiness. While the happiest are clearly those earning more than $150,000, this hardly proves conclusive, given that the unhappiest are only earning a little less in the $125,000 - $149,000 bracket. (It is also of note that in the 2004 Australian research, those earning over $150,000 were most likely to be unhappy in their job). Happiness in the current job - by salary less than $15,000 $15,000 - $29,999 $30,000 - $49,999 $50,000 - $69,999 $70,000 - $124,999 $125,000 - $149,999 More than $150,000 Unhappy 33% 43% 45% 45% 42% 46% 21% Neutral 36% 31% 28% 28% 32% 18% 29% Happy 30% 26% 27% 26% 26% 36% 50% 5

2004 Survey of Employee Satisfaction and Motivation in New Zealand 2004 SEEK (NZ) Limited Changes with age Maturity is also linked with happiness. People in the age group of 25-39 are clearly the most dissatisfied. After the age of 40, this dissatisfaction decreases, while job happiness increases. Happiness in the current job - by age 6

THE NEW ZEALAND WORKPLACE Organisational and Management culture I think it s about time the employers realised that without workers you don t have a business at all. Organisational culture A phrase such as embracing change or sharing values is often used in company statements to articulate a flexible and enlightened approach to the workforce. However, respondents had some very clear opinions on how companies were performing on organisational culture. Findings illustrate that employers perform differently on some of these values. Companies certainly scored highest on embracing change and innovation, and encouraging SEEK Jobseeker employee development and training, and yet the lowest on rewarding individual achievement. There is clearly room for improvement. Level of agreement or disagreement with statements about organisational culture 2004 Survey of Employee Satisfaction and Motivation in New Zealand 2004 SEEK (NZ) Limited Strongly disagree Somewhat disagree Somewhat agree Strongly agree My company embraces change and innovation 11% 26% 45% 18% My company encourages employee development and training 16% 30% 37% 17% My company encourages flexible working arrangements 16% 26% 40% 17% My company strives to provide a good working environment 16% 28% 40% 15% My company displays values I share 20% 32% 38% 10% My company rewards individual achievement 27% 32% 31% 9% Overall average 18% 24% 38% 14% Employees who are happy in their job appear more likely to embrace the organisational culture of the company. Further analysis reveals a strong correlation between each of the organisational culture attributes and job happiness. Employees who are happy in their job appear more likely to embrace the organisational culture of the company. Overall, employees are generally unhappy with their jobs, (with 27% of employees indicating that they were happy, and 44% unhappy). However, out of the people who strongly agreed with the statements about organisational culture, 60% were happy, while only 17% were unhappy. Similarly, of the respondents who strongly disagreed with the statements about their company culture, 75% were unhappy, while only 7% were happy. 7

2004 Survey of Employee Satisfaction and Motivation in New Zealand 2004 SEEK (NZ) Limited Findings for each of the organisational culture statements by happiness in current job My company embraces change and innovation My company rewards individual achievement My company strives to provide a good working environment My company encourages employee development and training My company encourages flexible working arrangements Employees that strongly agree with the statements Happy in current job Unhappy in current job Employees that strongly disagree with the statements Happy in current job Unhappy in current job 49% 25% 7% 76% 63% 13% 8% 70% 65% 12% 5% 80% 57% 18% 7% 74% 51% 19% 10% 68% My company displays values I share 72% 13% 5% 81% Overall average 60% 17% 7% 75% Vision statements count for little if more than half the employees don t share company values While it can be argued that an unhappy employee is likely to express a jaundiced view of company culture, these findings are significant and cannot be dismissed vision statements count for little if more than half the employees do not share the company values, or feel that their individual achievement is not rewarded. If an organisational culture does not encourage all its employees to pull in the same direction, it may not just affect employee satisfaction levels, but influence company performance and growth. The Chicken and the Egg... New Zealand employers will want to better understand if organisational culture influences employee happiness; or whether happy employees are just more likely to embrace company values and culture... 8

Management culture Response to the survey indicates that a lack of trust in management is endemic in the New Zealand workplace. It is New Zealand management that must drive growth and motivate the workforce, and yet over half the respondents disagreed with every statement that measured aspects of management. While management performs best on listening to employees (45% agree), over half of the sample still disagreed with this statement. Level of agreement or disagreement with statements about management Management listens to employees Strongly disagree Somewhat disagree Total disagree Somewhat agree Strongly agree Total agree 23% 33% 56% 35% 10% 45% Management inspires trust 26% 35% 61% 29% 10% 39% Management is open and honest with employees Management provides regular feedback to me Management encourages and responds to suggestions and criticism Management performed worst on encouraging and responding to suggestions and criticism. (only 37% agree with this statement). If you are a manager, it is likely that many of your employees dislike working for you, and don t trust what you have to say 62% of the New Zealand employees believe management is not open and honest... 26% 36% 62% 28% 10% 38% 28% 34% 62% 29% 9% 38% 28% 35% 63% 29% 8% 37% Overall average 26% 35% 61% 30% 9% 39% 2004 Survey of Employee Satisfaction and Motivation in New Zealand 2004 SEEK (NZ) Limited Respondents who agreed to the above statements were happier in their jobs. People who agree that their management culture is supportive and the correlation between happiness and management culture is even stronger Management culture by - happiness in current job Employees that strongly agree with the statements Happy in current job Unhappy in current job Employees that strongly disagree with the statements Happy in current job Unhappy in current job Management listens to employees 68% 13% 6% 77% Management inspires trust 67% 11% 5% 74% Management is open and honest with employees Management provides regular feedback to me Management encourages and responds to suggestions and criticism has effective communication are significantly happier in their jobs than those who disagree. 39% 17% 6% 73% 62% 17% 7% 70% 17% 13% 21% 72% Overall average 51% 14% 9% 73% 9

2004 Survey of Employee Satisfaction and Motivation in New Zealand 2004 SEEK (NZ) Limited Satisfaction and Motivation - LOVE & HATE Colleagues are what employees most love about their current jobs, and the quality of management is the most hated aspect. What people love about their current job Male and female bosses are equally loved or hated. We like the people we work with. Work colleagues were the most loved aspect across all respondents, but especially with the younger audience (under the age of 25). Employees in the 40-65 group were more likely to nominate the variety and content of work as something that they loved, while the older employees (over 65) were more likely to select job security and hours of work than any other age groups. Dissatisfaction with feedback/appreciation increases steadily as people get older, and management is a more hated aspect of the job in the older age groups, along with the workplace environment. Younger employees (under 25) are more likely to hate their salary and hours of work. The gender of the manager does not appear to influence opinion - male and female bosses are equally loved or hated! (For complete table on job loves by age please refer to Appendix 3) 10 New Zealand workers might be sceptical about what s happening at senior levels in their organisation, but it seems they enjoy being part of the team

What people hate about their current job 2004 Survey of Employee Satisfaction and Motivation in New Zealand 2004 SEEK (NZ) Limited For the second consecutive year, the quality of management is the one aspect of their job that New Zealand employees hate the most. Over half of all employees surveyed cited quality of management; and it is therefore not surprising, perhaps, that stress level and feedback/appreciation are also high on the hate list. It appears that the top five factors employees hate about the job have not changed from year to year. Quality of management, feedback/appreciation, stress levels, career development and salary all made the top five list of hates in the first survey, and reveal the more unfavourable aspects of the New Zealand workplace. However, more New Zealanders feel that they are underpaid than last year. 47% hate their salary today, compared to 41% last year. Working hours is the other consistent performer. About one in four employees hate the working hours in their current job, but this again only merits a ranking of ninth in the list of hates ; and when respondents were asked to nominate the factors that are extremely important when looking for a job, working hours only came in ninth. There are some differences between the industries in terms of what people love and hate, and these are shown in the table overleaf. (For complete table on job hates by age please refer to Appendix 4) What do New Zealanders hate most about their job? The quality of management... 11

2004 Survey of Employee Satisfaction and Motivation in New Zealand 2004 SEEK (NZ) Limited The top factors that people love and hate in their job by industry Accounting Love Hate People I work with 60% Quality of management 53% Hours of work 44% Feedback/appreciation 47% Benefits/conditions 38% Stress level 45% Administration/Customer Service Advertising Consulting People I work with 60% Quality of management 45% Hours of work 46% Salary 43% Benefits/conditions 40% Feedback/appreciation 42% People I work with 74% Stress level 54% Benefits/conditions 46% Quality of management 54% Hours of work 40% Feedback/appreciation 51% People I work with 56% Feedback/appreciation 33% Variety and content of work 45% Quality of management 32% Hours of work 36% Variety and content of work 32% Education/Science Engineering People I work with 62% Quality of management 48% Hours of work 47% Stress level 45% Variety and content of work 43% Feedback/appreciation 41% People I work with 50% Quality of management 55% Variety and content of work 42% Salary 45% Hours of work 37% Feedback/appreciation 41% Financial/Banking/Insurance Government Healthcare People I work with 59% Quality of management 49% Benefits/conditions 42% Salary 49% Hours of work 40% Stress level 41% People I work with 53% Quality of management 59% Variety and content of work 50% Feedback/appreciation 53% Benefits/conditions 41% Stress level 48% People I work with 65% Stress level 53% Variety and content of work 55% Quality of management 47% Hours of work 45% Salary 47% 12

Hospitality/Tourism IT/Technical Legal Manufacturing Love Hate People I work with 65% Stress level 50% Variety and content of work 55% Salary 48% Hours of work 45% Quality of management 45% People I work with 63% Quality of management 55% Hours of work 38% Career development 43% Variety and content of work 37% Feedback/appreciation 40% People I work with 56% Career development 41% Variety and content of work 44% Salary 41% Job security 38% Stress level 31% Feedback/appreciation 31% Hours of work 47% Quality of management 57% People I work with 45% Feedback/appreciation 51% Salary 31% Stress level 45% 2004 Survey of Employee Satisfaction and Motivation in New Zealand 2004 SEEK (NZ) Limited Media Variety and content of work 68% Quality of management 50% People I work with 59% Feedback/appreciation 44% Hours of work 44% Salary 44% Workplace environment 44% Retail/Consumer Products Sales/Marketing People I work with 59% Salary 63% Hours of work 32% Stress level 49% Job security 30% Quality of management 45% People I work with 57% Quality of management 51% Hours of work 40% Feedback/appreciation 49% Variety and content of work 40% Salary 41% Stress level 41% Trades/Personal Services Transport/Logistics People I work with 56% Quality of management 51% Hours of work 48% Feedback/appreciation 49% Benefits/conditions 42% Salary 41% Job security 42% Stress level 41% People I work with 58% Stress level 47% Variety and content of work 51% Career development 46% Workplace environment 46% Quality of managment 46% 13

2004 Survey of Employee Satisfaction and Motivation in New Zealand 2004 SEEK (NZ) Limited SEEKING THE PERFECT JOB What matters the most? What is the answer? Quality of management is the most important factor for employees when looking for a new job - and yet it is the major aspect they hate about their current job. So if your company management is poor, it is likely that some of your employees will be unhappy and leave - but as management is such an important factor to jobseekers, how will you attract new skilled talent...? What do New Zealand employees look for and value when they are looking for their next job? Their satisfaction with aspects of their current role is not a complete guide. Factors that are extremely important to jobseekers when looking for a job When respondents were asked what factors were important when looking for a job, the quality of management was selected by over half as extremely important. People I work with was the next major consideration and career development, variety and content of work and workplace environment were ranked very close below. While stress levels were the third most hated aspect of their current role, respondents ranked low stress as the least important consideration when looking for a new role. Similarly, while respondents ranked salary as number two in their list of hates in their current job, it is only ranked sixth as a factor when looking for the next one. Low stress level was the least important factor when looking for a job. Extremely important 1 Quality of management 56% 2 People I work with 47% 3 Career development 46% 4 Variety and content of work 46% 5 Workplace environment 46% 6 Salary 45% 7 Job security 44% 8 Feedback/appreciation 40% 9 Hours of work 35% 10 Company direction and goals 35% 11 Benefits/conditions 32% 12 Access to training or skills development 32% 13 Low stress 23% What s the point of having a few extra dollars, if you re miserable? SEEK Jobseeker 14

Factors that are extremely important when looking for work - by industry Key factors by industry: There are some differences between industries regarding what people consider being extremely important when looking for a job. Accounting Retail/Consumer goods Job Security 49% Quality of management 65% Career development 48% Workplace environment 64% Quality of management 48% Job security 56% Workplace environment 48% Advertising Trades/Personal services Workplace environment 75% Job security 61% Quality of management 60% Quality of management 60% Salary 57% Salary 57% Education Administration/Customer Service Quality of management 53% Quality of management 57% Variety and content of work 43% People I work with 55% Workplace environment 42% Variety and content of work 52% 2004 Survey of Employee Satisfaction and Motivation in New Zealand 2004 SEEK (NZ) Limited Financial/Banking/Insurance Consulting Quality of management 62% Career development 59% Workplace environment 58% Quality of management 58% Variety and content of work 56% Workplace environment 56% Healthcare Engineering Quality of management 70% Quality of management 0% Job security 59% People I work with 0% Salary 58% Variety and content of work 0% IT/Technical Government Quality of management 44% Workplace environment 50% Workplace environment 42% Quality of management 49% Career development 42% Variety and content of work 45% Manufacturing Hospitality/Tourism Quality of management 61% Workplace environment 65% Job security 53% Quality of management 59% Career development 52% Career development 56% 15

2004 Survey of Employee Satisfaction and Motivation in New Zealand 2004 SEEK (NZ) Limited Legal Media Sales/Marketing Workplace environment 50% Quality of management 61% Salary 48% Career development 51% Career development 45% Workplace environment 50% Career development 62% Quality of management 62% Variety and content of work 62% There are also differences between age groups regarding what factors are important when looking for a job. Not surprisingly, career development is significantly more attractive to younger people. On the other hand, people Transport/Logistics Job security 59% Career development 53% Workplace environment 50% who have been in the workforce for longer are more likely to value the importance of company direction and goals when looking for work. (For the complete chart on how the importance of factors when looking for a job differs by age, please refer to Appendix 5) People who have been in the workforce for longer are more likely to value the importance of company direction and goals when looking for work. 16

MANAGEMENT QUALITIES What management qualities are valued? The quality of management is the number one factor of importance when respondents look for a job. When asked what particular aspects of management people respect the most, each of the aspects received high scores, indicating that these are all qualities that people highly value in management. The most respected managerial qualities were openness and honesty, and the ability to follow up their words with action. Respondents were asked to rate their immediate managers on a scale from 1 (poor) to 5 (excellent). Overall, managers scored around average on all aspects. Openness and honesty was the only factor that received a score of over 3, and the ability to provide regular feedback received the lowest average score of 2.73. Openness and honesty in management is most respected Comparison between how employees rate their immediate manager vs. management qualities that they respect What they respect (1-5 least - most) Immediate manager (1-5 poor - excellent) 1 Management openness and honesty 4.64 3.09 2 Management ability to follow up their words with action 4.63 2.79 3 Management support of their team 4.52 2.90 4 Management ability to encourage and listen to suggestions 4.46 2.93 5 Management leadership 4.34 2.93 6 Management ability to provide regular feedback 4.24 2.73 2004 Survey of Employee Satisfaction and Motivation in New Zealand 2004 SEEK (NZ) Limited 17

2004 Survey of Employee Satisfaction and Motivation in New Zealand 2004 SEEK (NZ) Limited WHAT ATTRACTS CANDIDATES? Employers and recruiters use different strategies when designing job ads to attract jobseekers, from emphasising the company reputation, to stressing position titles or highlighting benefits. Importance of different components in job ads When looking for a job, three things stand out as the most important information that respondents look for in job ads: Job description and responsibilities Salary package Experience and skill requirements Sometimes the problems with mismanagement lie not with one s immediate supervisor, but the turkey that is running the show. SEEK Jobseeker 18

RESPONDENT PROFILE Employment status The respondents to the survey are currently employed. 74% are employed on a permanent full-time basis, while the others are either in casual, part-time, temporary or contract arrangement. Type of work Unskilled 9% Entry level/graduate 21% Trades 7% 65% of those people currently employed, are looking for a new full-time job Length of time working for the current employer less than a year 33% 70% are looking for a new full-time job, while 19% are not looking for work. The majority are in white collar/ professional type of work and between the ages of 25 and 39. White collar/professional 38% Managerial 18% Senior management 7% 2004 Survey of Employee Satisfaction and Motivation in New Zealand 2004 SEEK (NZ) Limited 1 to less than 3 years 35% 3 to less than 6 years 20% 6 to less than 10 years 12% Age Group 19

2004 Survey of Employee Satisfaction and Motivation in New Zealand 2004 SEEK (NZ) Limited ABOUT THE SURVEY The findings from the 2004 SEEK Intelligence survey of Employee Satisfaction And Motivation In New Zealand, are based on a sample of 2294 completed responses, collected by online survey. The survey largely represents a New Zealand audience that is online. Invitations to participate in the survey were published online on seek.co.nz, the leading New Zealand website yahoo.co.nz, and the leading portal xtramsn.co.nz, PeoplePulse The employee feedback in this SEEK Intelligence research report was collated by SEEK using PeoplePulse, an online research tool developed in Australia by Quinntessential Marketing Consulting. For further information on the PeoplePulse product or Quinntessential Marketing Consulting, please go to www.quinntessential.com.au/ peoplepulse.htm. About SEEK SEEK (NZ) Limited manages seek.co.nz, New Zealand s largest employment website and one of the best known Internet brands. At any one time over 8,500 employment vacancies are advertised on SEEK NZ, and more than 150,000 unique visitors are drawn to the website each month. which reaches over 85% of the New Zealand Internet audience. Invitations to participate in the survey were also sent in an email newsletter to jobseekers registered with SEEK and alliance sites. The sample represents both active jobseekers who are actively looking for new employment, as well as passive jobseekers, who are fully employed and may be browsing for new opportunities. Online advertising enquiries can be directed to SEEK s customer service team on 0508 733 569, or by email to seeklistings@seek.co.nz. 20

APPENDIX 1. Job security - by industry 2004 Survey of Employee Satisfaction and Motivation in New Zealand 2004 SEEK (NZ) Limited 21

2004 Survey of Employee Satisfaction and Motivation in New Zealand 2004 SEEK (NZ) Limited 2. Happiness in the current job - by industry 22

3. What employees love about their jobs - by age <25 25-39 40-54 55+ Access to training or skills development 7% 7% 6% 7% Benefits/conditions (leave, flexible time etc.) 10% 11% 10% 10% Career development 9% 5% 3% 3% Feedback/appreciation 4% 3% 3% 5% Hours of work 10% 13% 13% 14% Job security 9% 9% 9% 10% People I work with 19% 18% 17% 14% Quality of management 4% 3% 2% 4% Salary 6% 8% 9% 8% Stress level 5% 4% 4% 4% Variety and content of work 8% 10% 14% 12% Workplace environment 10% 8% 9% 9% 4. What employees hate about their jobs - by age 2004 Survey of Employee Satisfaction and Motivation in New Zealand 2004 SEEK (NZ) Limited < 25 25-39 40-54 55+ Access to training or skills development 6% 7% 7% 7% Career development 8% 10% 10% 7% Feedback/appreciation 9% 11% 12% 13% Hours of work 8% 5% 6% 6% Job Security 4% 5% 5% 7% Benefits/conditions (leave, flexible time, etc.) 7% 5% 6% 5% People I work with 5% 5% 4% 3% Quality of management 10% 13% 14% 14% Salary 14% 11% 10% 10% Stress level 11% 11% 12% 13% Workplace environment 9% 9% 9% 10% Variety and content of work 9% 7% 5% 6% 23

2004 Survey of Employee Satisfaction and Motivation in New Zealand 2004 SEEK (NZ) Limited 5. What is important when looking for a new job - by age 24