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Industry News

 

Why the Ongoing Disconnect Between Employers and Workers?

Thursday October 22, 2009

 

Fort Lauderdale, Fla. — Oct. 22

Historically high unemployment rates and a weak economy have not significantly impacted employees’ career priorities and expectations, according to a comprehensive study of U.S. employers and workers just released by Spherion Corp.

While workers still have high expectations of what their employers should be doing to retain them, the study shows that employers continue to have differing opinions about what keeps employees committed to their jobs — including financial compensation, benefits, work-life balance and growth potential. As a result, only 24 percent of workers say they are very satisfied with their growth and earnings potential at their current employer, and 27 percent say they are very satisfied with their compensation levels.

“Despite the significant changes that U.S. employers and workers have witnessed over the past few years, we see that there has been surprisingly little change in how both perceive the workplace and the employer-employee relationship,” said Roy Krause, Spherion president and CEO. “The fact that the results haven’t shifted significantly is indicative of an interesting trend we’ve been following over the last 12 years: Workers’ perceptions of their own situations and expectations of their employers aren’t largely impacted by the economy.

“This continuing disconnect could mean that as soon as job creation starts up again, employers who haven’t focused on retention could face high levels of turnover as workers seek positions at employers that offer them greater workplace satisfaction,” he said. “It is imperative that HR executives realize that the actions they take during a downturn will impact the bottom line and potential growth of their organization in an upturn.”

Low Satisfaction and Differing Views on Retention

Not surprisingly — given the current economic condition — financial compensation and benefits packages continue to be the most important factors in a worker’s decision to stay with or leave an employer. However, other crucial factors such as growth potential and work-life balance also play a major role in their decisions. Employers, on the other hand, have very different thoughts on what drives employee retention, as they believe management climate, supervisor relationships and company culture are the driving forces. Workers also continue to express low rates of satisfaction with each retention driver, further exacerbating the disconnect.

Company Reputation and Mission Important to Candidates and Employees

The study results also highlight the importance of company reputation and a clear strategy or mission to today’s workforce. In fact, employees within an organization that has a clear mission and follows through on that mission are much more likely to refer a friend to their employer than one without (52 percent vs. 31 percent).

“A company’s reputation is clearly important in the minds of both candidates and employers, and that’s why the most innovative companies are actively managing their reputation — both externally and with their own employees,” Krause said. “The difference in satisfaction and likelihood of referrals for companies that clearly state their mission and then consistently follow through with their stated mission shows that workers are looking and watching everything that companies say and do through all channels.

“Employers that don’t manage their mission, reputation and message face serious backlash from their constituents, which could have a long-lasting impact on their perception in the marketplace as well as among their own workforce,” he said.

For more info: http://www.spherion.com/emergingworkforce