SEEK INTELLIGENCE 2006 EMPLOYEE SATISFACTION & MOTIVATION

SEEK INTELLIGENCE 2006 EMPLOYEE SATISFACTION & MOTIVATION

SEEK INTELLIGENCE: 2006 SURVEY OF EMPLOYEE SATISFACTION AND MOTIVATION IN AUSTRALIA Have you ever wondered what Australian employees really think of their managers? Ever wondered what makes them leave their current job? In a tight employment market, it is more important than ever to know what really makes employees tick. The fourth SEEK Intelligence Survey of Employee Satisfaction and Motivation in Australia has collected responses from over 8700 employed participants about how they view their work. This year s survey included questions relating to work-life balance and the priority work takes in employees lives. Questions relating to loyalty and the key reasons why people would leave their current job have also been included to determine if any emerging patterns are occurring. Employees were also asked to rate their own ability and whether or not they felt they could do a better job than their immediate boss. For the first time employees appear to be generally happier and more secure in their jobs this year. However organisations can not ignore that employees remain concerned that their immediate managers are all talk no action and that the quality of overall management continues to be the most hated aspect of a job in the Australian workplace. The survey responses were collected from a broad online audience of employed people, of which 63% are looking for a new full-time job and the remaining looking for part time work/contract work. In order to attract and retain the best quality candidates, organisations must take measures to ensure employee confidence and commitment to management is respected, especially given this is the key reason employees leave their current job. 1

2006 Survey of Employee Satisfaction and Motivation in Australia Table of contents 01. The Top 10 Insights 03 02. Employment in Australia Security and Happiness 05 03. Australian Organisational and Management culture 09 04. Satisfaction and Motivation Love and Hate 11 05. Employee loves/hates - by industry 13 06. Greener Grass? Candidate job hunting confidence 16 07. valued Management Qualities 20 08. What attracts candidates? 21 09. Respondent Profile 23 10. About The Survey 25 11. APPENDIX 26 Appendix 1: Chart of job security - by industry 26 Appendix 2: Chart of happiness/unhappiness - by industry 27 Appendix 3: Table of what employees love about their job - by age 27 Appendix 4: Table of what employees hate about their job - by age 28 Appendix 5: Chart of importance of factors when looking for a new job - by age 28 2

01. THE TOP 10 INSIGHTS 1. The most happy employees work in: Community/Sport 51% Science & Technology 49% HR & Recruitment 48% Consulting & Corporate Strategy Construction 2. The most unhappy employees work in: Engineering Manufacturing/Operations Banking & Finance Retail/Consumer Products 42% Sales/Marketing 40% 3. Organisational Culture: Over half of employees who completed the survey, (54%) think companies do not reward individual achievement. In order to retain quality employees in a tight labour market, companies need to address this issue if they are to retain the best employees. 4. What employees love about their job: 58% 40% 33% 5. What employees hate about their job: Quality of overall management Feedback appreciation 6. Management Culture: Employees think their immediate Managers are more talk, less action. Immediate Managers score poorest on following their words up with actions. Generally management score poorly on leadership and their ability to provide regular feedback. 3

7. The most important factors when looking for a job: Job security 49% 8. Factors that matter most in job adverts: Job description Experience and skill requirement 86% 80% 78% 9. Employees are significantly happier this year. Happiness across the Australian workforce has increased to 37% in 2006 (up from 21% in 2005). 37% of employees are unhappy (down from 56% in 2005). 10. Overall Job security has increased to 26% (up from 18% in 2005) pointing to the shift in power to the worker. Employment is a two way street, when you see your employer acknowledge this it gives you the drive to want to grow their business with them and stay for the long haul. My employer treats me like his partner, it makes me work for him like I am his partner. Survey Respondent 4

02. EMPLOYMENT IN AUSTRALIA SECURITY AND HAPPINESS SATISFACTION JOB SECURITY Job security has increased significantly over the last twelve months. There has been a shift away from feeling the same level of security year on year and a move towards greater security. of employees now feel about the same in terms of job security (down from 52% in 2005) and the reverse has occurred in terms of employees who now feel more secure. 26% of employees now describe themselves as more secure in 2006 (up from 18% in 2005). EMPLOYERS FEEL MORE SECURE IN 2006 Job security today, compared to 12 months ago 2004 2005 2006 Less secure About the same More secure 23% 56% 21% 30% 52% 18% 31% 26% ACT EMPLOYEES FEEL THE MOST SECURE Job security by region Less Secure About the same More secure ACT - Canberra NSW - Sydney NSW - regional NT - Darwin NT - regional QLD - Brisbane QLD - regional SA - Adelaide TAS - Hobart TAS - regional VIC - Melbourne VIC - regional WA - Perth WA - regional 34% 30% 32% 20% 17% 30% 32% 32% 29% 32% 34% 26% 25% 36% 60% 56% 30% 42% 41% 52% 30% 26% 25% 20% 28% 27% 25% 23% 26% 29% 25% 25% 28% 23% 5

The research shows that job security differs significantly between metropolitan and regional areas. For the second consecutive year, in 2006 employees from the ACT feel the most secure in their job, while employees in the TAS - Hobart feel the least secure. Interestingly there are significant differences in security in those that live in the metropolitan areas as opposed to regional areas especially in WA and the Northern Territory. Satisfaction Happiness A HAPPIER WORKFORCE THIS YEAR A positive comment from an employer is very effective and costs nothing. Survey Respondent Happiness in the current job 2004 2005 2006 Very unhappy Unhappy Neutral Happy Very Happy 14% 31% 26% 23% 6% 21% 35% 24% 16% 5% 12% 25% 25% 27% 10% 37% OF RESPONDENTS ARE BOTH HAPPY AND UNHAPPY IN THEIR CURRENT JOB! A more optimistic picture is emerging in 2006. In stark contrast to 2005; employees appear to be significantly happier in 2006. While a similar proportion are neutral 25% (down from 24% in 2005), over 37% of respondents consider themselves to be happy (up from 21% in 2005). There has been a significant drop in employees who consider themselves to be unhappy from 56% in 2005 to 37% in 2006. Happiness in the current job - by job security Less secure About the same More secure Unhappy Natural Happy 31% 17% 42% 49% 37% 13% 20% THE HAPPIEST INDUSTRY? COMMUNITY AND SPORT THE HAPPIEST INDUSTRY Happiness varies according to industry. In 2006 the happiest employees are those that work in Community and Sport, while those in Engineering are the most unhappy. Happy top 5 Unhappy top 5 Community and Sport Science and Technology HR and Recruitment Consulting and Corporate Strategy Construction 51% 49% 48% Engineering Manufacturing / Operations Banking and Finance Retail/Consumer Products Sales/Marketing 42% 40% 6

Tenure Happiness in the current job - by length of employment Again in 2006, the survey shows that happiness in the job is linked to the length of time an employee has worked for an employer. Employees who have worked for an employer for less than 1 year appear to be the happiest. Happiness declines when an employee works for an organisation between 1 and 10 years and slightly increases after 11 years and over of service. Happiness in the current job by salary MONEY CAN T BUY HAPPINESS The amount of money employees earn does not correlate to job happiness; in fact the opposite picture seems to be emerging from this year s survey. The happiest employees are those in the lower income bracket earning less than $15,000 and it appears that those earning $150,000 or more seem to be the least happy. Employees in the salary brackets $15,000 - $29,999 and $50,000- $69,999 appear to be the second happiest, where remuneration is not directly linked to major levels of responsibility. Employers should understand that one size does not fit all and that we are not all motivated by salary alone. Survey Respondent 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 Neutral Happy 28% 29% 38% 23% 38% 27% 36% 37% 24% 42% 23% 35% 41% 21% 38% 38% 30% 32% 7

THE YOUNG AND MORE MATURE AGE EMPLOYEES ARE THE HAPPIEST Employees under the age of 25 appear to be the most happy in their jobs. Those employees aged between 25-30 are equally happy and unhappy. However unhappiness outweighs happiness between the ages 31-54, where employees are in the middle of their career lifecycle. Mature age workers approaching the later end of their career experience increased happiness. Happiness in the current job - by age Happiness in the current job across Australia 8

03. THE GREAT AUSTRALIAN WORKPLACE Organisational culture CULTURE MATTERS The 2006 survey shows that companies again perform poorly in some critical areas of organisational culture at a time of low unemployment. Companies scored highest on employing a range of people from cultural backgrounds and similar to 2005, embracing change and innovation. In 2006 companies continue to score lowest in rewarding individual achievement. Employees also rate companies lowest on encouraging flexible working environments. Over half, 54% of employees do not feel that their company did not reward individual achievement (down from 66% in 2005), and 54% feel that their company does not encourage flexible working arrangements (up from 49% in 2005). I crave for an inclusive culture, open, free thinking and innovative. Survey Respondent Level of agreement or disagreement with statements about organisational culture My company embraces change and innovation My company encourages flexible working arrangements My company strives to provide a good working environment My company encourages employee development and training My company displays values I share My company rewards individual achievement My company employs a range of people from different cultural backgrounds* My company promotes based on merit rather than tenure (length of employment)* Strongly disagree Somewhat disagree Somewhat agree Strongly agree Total agree 15% 24% 17% 60% 28% 27% 33% 13% 15% 24% 40% 21% 61% 18% 24% 37% 21% 58% 18% 28% 15% 54% 28% 27% 33% 13% 7% 12% 38% 81% 19% 25% 41% 16% 57% Overall average 19% 24% 38% 20% 59% *First time Question 2006 9

Employees are generally happier with their jobs in 2006 in comparison to 2005, with 37% feeling happy, 37% feeling unhappy and 25% neutral. In light of this, unsurprisingly there has been an increase in happiness for those that strongly agreed with the statements about organisational culture. Of those employees that strongly agreed with organisational statements 64% were happy (up from 54% in 2005) and only 18% were unhappy (down from 25% in 2005). In stark contrast to this, there has been a decline in unhappiness for those employees that strongly disagreed with the statements about organisational culture. 69% of those employees were unhappy down from 80% in 2005 and 11% were happy (up from 6% in 2005). The following table shows findings for each of the organisational culture statements by happiness in current job My company displays values I share My company strives to provide a good working environment My company rewards individual achievement My company encourages employee development and training My company embraces change and innovation My company encourages flexible working arrangements My company promotes based on merit rather than tenure (length of employment) My company employs a range of people from different cultural backgrounds 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 76% 13% 7% 76% 73% 12% 7% 76% 71% 15% 13% 64% 67% 17% 9% 71% 66% 18% 10% 71% 64% 17% 13% 67% 47% 22% 12% 65% 31% 18% 59% Overall average 64% 18% 11% 69% Unhappy in current job 10

04. SATISFACTION AND MOTIVATION LOVE & HATE WHAT EMPLOYEES LOVE ABOUT THEIR JOB EMPLOYEES LOVE THEIR COLLEAGUES, HATE THEIR MANAGEMENT What people love about their current job For the third consecutive year, employees rate the people they work with as the most loved aspect of their current job across all age groups. follows a close second across all the groups except for mature age employees 55+ who rate workplace environment as the # 2 aspect they love about their job. 11

WHAT EMPLOYEES HATE ABOUT THEIR JOB What people hate about their current job For the fourth consecutive year, the quality of overall management is again the aspect of their job that employees across Australia hate the most. Although the top 5 factors employees hate about their job remain the same, the ranking has shifted. The survey highlights the importance of which continues to be the least hated and most loved aspect of employees jobs. moves from 4th position in the 2005 survey to the second most hated aspect of a job and feedback and appreciation drops from 2nd to third position. Are employees in a tight market getting more demanding? From an individual Industry perspective, given the varied nature of each industry some key differences in terms of love and hate aspects. There are some key differences between the industries in terms of what people love and hate, and these are shown in the table overleaf. 12

05. EMPLOYEE LOVE/HATES BY INDUSTRY THE MAJORITY OF INDUSTRIES EMPLOYEES LOVE THE PEOPLE THEY WORK WITH AND HATE THE QUALITY OF OVERALL MANAGEMENT The top factors that people love and hate in their job by industry Love Hate Accounting Benefits/conditions 51% 41% 36% Quality of overall management 37% 36% Administration Benefits/conditions 59% 34% 42% 41% Advertising/Media/Entertainment 59% 41% 34% Stress level Quality of overall management 41% 40% Banking & Financial Services Benefits/conditions 55% 38% Stress level Quality of overall management 41% 41% 40% Call Centre/Customer Services 66% 41% 35% Stress level 42% 42% Community & Sport Workplace environment 63% 48% Feedback/appreciation 42% 40% 36% Construction 52% 42% 40% 40% 40% 13

Love Hate Consulting & Corp. Strategy 56% 50% 33% Job security 34% 30% 30% Education & Training 62% 49% 41% Stress level Feedback/appreciation 40% Engineering 37% 34% Feedback/appreciation 40% Government/Defence Benefits/conditions 57% 54% 51% Feedback/appreciation Stress level 49% 49% 47% Healthcare & Medical 63% 35% Stress level Feedback appreciation 48% HR & Recruitment Workplace environment 68% 40% 35% Stress level Feedback appreciation 40% 36% Insurance & Superannuation Benefits/conditions 55% 35% 35% Stress level Feedback appreciation 36% 34% 32% IT/Technical Benefits/conditions 56% 38% 35% Stress level 48% 47% 38% Legal Benefits and conditions 51% 35% Feedback/appreciation 49% 49% 49% 14

Love Hate Manufacturing/Operations 52% 40% Feedback/appreciation 50% Mining, Oil & Gas 48% Feedback/appreciation Stress level 48% 34% Primary Industry 67% 37% 33% Stress level 48% 35% 35% Real Estate & Property 55% 41% Feedback/appreciation 59% Retail/Consumer Products Workplace environment 65% 37% 30% Quality of overall management Feedback and appreciation 42% Sales/Marketing 54% 37% 33% Feedback/appreciation Stress level Science & Technology Benefits/conditions 56% 51% 47% Feedback/appreciation 51% 40% Trades/Personal Services 53% 33% Stress level 52% 41% Transport/Logistics 51% 38% 32% Feedback/appreciation 50% 15

06. GREENER GRASS? CANDIDATE JOB HUNTING CONFIDENCE Employees think it will take less time to find a job in 2006 Unchanged from 2005, employees continue to rate the quality of overall management as the most important factor when job hunting. Employees want to work for organisations where quality of overall management is something they respect, yet in their current job it continues to be the # 1 most hated aspect. The reality of their jobs is quite the opposite of the ideal they aspire for. In addition to the above, 33% of employees think it will take less time to find a job in 2006 (up from 22% in 2005). This could potentially mean a mobile workforce who believe it will not take them long to find their next job. Time taken to find a job Take more time About the same Take less time 2004 2005 2006 30% 32% 31% 38% 24% 22% 33% How frequently employees look through job vacancies A high proportion, 89% of respondents are looking through job vacancies on a regular basis. In 2006, 68% of employees who completed the survey are looking through job vacancies on a daily or weekly basis. 21% are looking less frequently between less than once a week and every few months. Only 11% of employees who completed the survey are not looking for a new job. 16

I would like a real opportunity to find work - life balance and setting goals that are aligned with my personal interests as well as the companies. Survey Respondent Loyalty to your current employer Unsurprisingly, given that career development is one of the key factors employees look for in a job, it is also one of the key motivators to move employer. 18% of employees would move for a better salary and equally 18% would be reluctant to move from their employer. Work life balance comes into the equation for 17% of employees and less than 10% of employees consider they would move employer at the drop of a hat. Only 6% of employees consider themselves to be happy with their current employer and would not dream of moving, perhaps proving once again how mobile employees are. 17

FACTORS IMPORTANT TO JOBSEEKERS QUALITY OF MANAGEMENT REMAINS PARAMOUNT I m most motivated when I am gaining experience in areas where I require development. An employer who walks the career development talk and actively creates/supports opportunities is ideal. Survey Respondent Factors that are extremely important to jobseekers when looking for a job 1 4 2 3 5 6 8 9 10 12 11 7 13 Job security Benefits/conditions Workplace environment Access to training or skills development Company direction and goals Company reputation Low stress Extremely important 49% 42% 38% 38% 38% 36% 35% 30% 29% 28% 25% IMPORTANT FACTORS BY INDUSTRY QUALITY OF MANAGEMENT, SALARY AND CAREER DEVELOPMENT MATTER MOST Factors that are extremely important when looking for work - by industry Accounting Administration Career Development Job security 52% Advertising/Media/Entertainment Banking & Financial Services Career Development 50% 42% Career Development 53% 53% 50% Call Centre/Customer Services Community & Sport Job security 54% 53% Workplace environment 18

Construction Consulting & Corp. Strategy Job security 51% Company directions and goals 42% 41% Education & Training Engineering Job security 42% 42% 47% 41% Government/Defence Graduate/Entry Level 41% Access to training 53% 47% Healthcare & Medical HR & Recruitment 55% 47% 55% 47% Insurance & Superannuation IT/Technical Career Development 55% 50% 49% Career Development 40% 37% 36% Legal Manufacturing/Operations Job security 49% 47% Job security 50% 49% Mining, Oil & Gas Primary Industry Benefits and conditions 48% 40% Job security 53% 50% 50% Real Estate & Property Retail/Consumer Products Quality of overall management 54% 49% Quality of overall management Job security 54% 51% Sales/Marketing Science & Technology Quality of overall management 50% 38% Trades/Personal Services Transport/Logistics Job security Quality of overall management 53% 51% 47% Job security Quality of overall management 55% 50% 48% 19

07. MANAGEMENT QUALITIES ACTIONS SHOULD SPEAK LOUDER THAN WORDS WHAT MANAGEMENT QUALITIES ARE MOST RESPECTED BY EMPLOYEES? In 2006, the key aspects of overall management that employees respect the most are openness and honesty and their ability to follow up their words with actions. However immediate managers perform the poorest on their ability to follow up words with actions and seem to pay only lip service to measures that overall management set in place. Immediate management also scores poorly on their Leadership skills. Organisations across Australia should take steps to bridge such potentially damaging skills gaps in their immediate managers. The best boss is one who harnesses all the talents in a team, gives recognition and encourages innovation. Survey Respondent MANAGERS HAVE MORE WORK TO DO Comparison between how employees rate their immediate manager vs. management qualities that they respect Mg. qualities they respect (1-5 least - most) Immediate manager (1-5 poor - excellent) 1 2 3 4 5 6 Openness and honesty Ability to follow up their words with action Support of their team Ability to encourage and listen to suggestions Leadership Ability to provide regular feedback 4.65 4.60 4.52 4.51 4.27 4.26 3.21 2.62 3.04 3.09 3.02 4.02 Comparison between how employees rate their immediate manager v s management qualities that they respect Mg. qualities they respect 2005 (1-5 least most) Mg. qualities they respect 2006 (1-5 least most) Immediate Manager 2005 (1-5 least most) Immediate Manager 2006 (1-5 least most) 1. 2. 3. 4. 5. 6. Openness and honesty Ability to follow up their words with action Support of their team Ability to encourage and listen to suggestions Leadership Ability to provide regular feedback 4.62 4.64 4.54 4.49 4.31 4.25 4.65 4.60 4.52 4.51 4.27 4.26 2.81 2.55 2.68 2.71 2.72 2.58 3.21 2.62 3.04 3.09 3.02 4.02 20

08. WHAT ATTRACTS CANDIDATES? IT IS THE JOB THAT COUNTS, OH AND THE MONEY WHAT CANDIDATES LOOK FOR IN A JOB ADVERT For the third consecutive year, Jobseekers continue to rank the same three components on top when looking at job adverts. Employers and recruiters should maximize their recruitment strategies by paying particular attention to designing job ads that are attractive to jobseekers. 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 package Experience and skill requirements Importance of different components in job ads 21

How candidates expect to find out about their next job EMPLOYMENT WEBSITES THE FAVOURITE METHOD TO FIND A NEW JOB How candidates expect to find out about their next job Employment websites are the main way employees expect to find out about their new job. The 2006 survey shows that 87% of employees expect to find their next job using employment websites (up from 80% in 2005) with a further 49% selecting newspaper adverts (down from 55% in 2006). 49% of employees would expect to find out about their next job via a recruitment agency (down from 54% in 2005). 22

09. RESPONDENT PROFILE SEEK USERS RESPONDING ARE LARGELY EDUCATED, YOUNGER PROFESSIONALS EMPLOYMENT STATUS The respondents to the survey are currently employed. Some 63% are employed on a permanent basis full-time, while a further 27%, are either in casual, part-time, temporary or contract arrangement. The majority are in white collar or professional work, and between the ages of 25 and 39. The respondents to the survey are currently employed. Some 63% are employed on a permanent basis full-time, while the others are either casual (12%), part-time (10%), temporary (2%) or contract arrangement (7%) The survey represents employees with a variety of skill level, from entry level/graduate positions to senior management reporting directly to a board. Work type Size of organisation Length of time working for the current employer Less than 10 Between 11-25 Between 26-50 Between 51-100 Between 101-500 Between 501-1000 1000+ 14% 14% 11% 11% 21% 8% 22% Less than a year 1 to less than 3 years 4 to less than 6 years 7 to less than 10 years 11 years and over 32% 14% 6% 4% 23

Which of the following best describes you? A DEDICATED WORKFORCE 49% of survey respondents think work takes more priority at the moment than lifestyle Age group 24

10. ABOUT THE SURVEY The findings from the 2006 SEEK Intelligence survey of Employee Satisfaction and Motivation in Australia, are based on a sample of 8729 completed responses, collected by online survey. The survey largely represents an Australian audience that is online. Invitations to participate in the survey were largely published online on seek.com.au, and partner sites. It is interesting to note year on year changes given that the sample is largely made up of SEEK jobseekers. Invitations to participate in the survey were also sent in an email newsletter to over one million 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. 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 Limited is the leading online employment and training site in Australia and New Zealand. SEEK is a media company using the Internet as its distribution channel. SEEK manages seek.com.au, Australia s largest employment website and one of the best known Internet brands. At any one time over 120,000 employment vacancies are advertised on SEEK in Australia and over 2 million unique visitors are drawn to the website each month, equivalent to over 20% of the working population. Online advertising enquiries can be directed to SEEK s customer service team on 1300 658 700. Check or by email to listings@seek.com.au 25

11. APPENDIX 1. Job security - by industry 26

2. Happiness In the current job - by Industry 3. What employees love about their jobs - by age Access to training or skills development Benefits/conditions (leave, flexible time, etc.) Feedback / appreciation Job security Quality of overall management My boss Stress level Workplace environment 25 25-39 40-54 55+ 22% 21% 16% 17% 33% 33% 32% 27% 24% 22% 12% 11% 19% 16% 15% 19% 40% 36% 41% 42% 25% 26% 22% 23% 62% 59% 56% 56% 14% 11% 12% 15% 22% 21% 17% 19% 25% 23% 26% 24% 17% 15% 14% 13% 25% 28% 41% 42% 33% 31% 31% 33% 27

4. What employees hate about their jobs by age Access to training or skills development Benefits/conditions (leave, flexible time, etc.) Feedback / appreciation Job security Quality of overall management My boss Stress level Workplace environment 25 25-39 40-54 55 + 22% 28% 28% 24% 24% 26% 26% 20% 36% 42% 42% 30% 36% 38% 38% 41% 35% 30% 30% 25% 22% 22% 22% 30% 17% 15% 15% 11% 30% 27% 27% 22% 34% 42% 30% 29% 29% 30% 34% 30% 30% 22% 5. What is important when looking for a new job by age 28