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Employee Job Satisfaction and Engagement Report

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Employee Job Satisfaction and Engagement Report EMPLOYEE JOB SATISFACTION AND ENGAGEMENT Revitalizing a Changing Workforce A RESEARCH REPORT BY THE SOCIETY FOR HUMAN RESOURCE MANAGEMENT EMPLOYEE JOB SATISFACTION AND ENGAGEMENT Revitalizing a Changing Workforce A RESEARCH REPORT BY THE SOCIETY FOR HUMAN RESOURCE MANAGEMENT MSTUV CWXYVZY IXTUV Kate Kennedy Gurgaon, Sector 26 E-mail [email protected] Haryana 122002 Phone + 1.703.535.6260 Phone +91.12.44200243 Founded in 1948, the Society for Human Resource Vanessa Hill E-mail [email protected] E-mail [email protected] Management (SHRM) is the world’s largest HR UXUYST A^V_ E`U^VYSa Phone +1.703.535.6072 membership organization devoted to human resource Dubai Knowledge Village management. Representing more than 275,000 USA Dubai, UAE members in over 160 countries, the Society is the SHRM Headquarters Phone +971.050.104.6330 leading provider of resources to serve the needs of HR Alexandria, VA 22314 E-mail [email protected] professionals and advance the professional practice Phone +1.800.283.7476 OXbUXS of human resource management. SHRM has more E-mail [email protected] SHRM Online shrm.org than 575 aKliated chapters within the United States C]UXV SHRM Research & Surveys and subsidiary oKces in China, India and United Gateway Plaza shrm.org/hr-today/trends-and-forecasting/research-and-surveys Arab Emirates. Visit SHRM Online at shrm.org. Chaoyang District SHRM Research on Twitter @SHRM_Research Beijing, 100027 SHRM Research on LinkedIn LinkedIn.com Phone +86.10.59231033 SHRM Research on SHRM Connect E-mail [email protected] http://community.shrm.org/home To order printed copies of this report, visit shrmstore.shrm.org or call 1-800-444-5006 . 16-0060 2 About This Research Report 30 Employee Job Satisfaction: Work Environment 4 Executive Summary 32 Job Security 10 Millennials: Misunderstood in the Workplace? 32 Organization’s Financial Stability 14 Employee Job Satisfaction: Career Development 32 Feeling Safe in the Work Environment 16 Opportunities to Use Skills/Abilities 32 The Work Itself 17 Career Advancement Opportunities 32 Overall Corporate Culture 18 Job-specific Training 33 Meaningfulness of the Job 18 Organization’s Commitment to Professional 33 Teamwork Within Department/Business Unit Development 33 Relationship with Co-workers 18 Career Development Opportunities 33 Contribution of Work to Organization’s Business Goals 19 Company-paid General Training 33 Teamwork Between Departments/Business Units 34 Communication Between Departments/Business Units 19 Networking Opportunities 34 Variety of Work 20 Employee Job Satisfaction: Compensation and Benefits 34 Organization’s Commitment to Corporate Social 21 Compensation/Pay Responsibility 22 Benefits 34 Organization’s Commitment to a Diverse and Inclusive 26 Employee Job Satisfaction: Employee Relationships Workforce with Management 35 Organization’s Commitment to a “Green” Workplace 28 Respectful Treatment of All Employees at All Levels 36 Employee Engagement 28 Trust Between Employees and Senior Management 37 Conditions for Engagement 28 Relationship with Immediate Supervisor 38 Engagement Opinions 28 Immediate Supervisor’s Respect for Employees’ Ideas 40 Engagement Behaviors 28 Communication Between Employees and Senior Management 42 Conclusions 29 Management’s Recognition of Employee Job 44 Methodology Performance 48 Appendix 29 Autonomy and Independence 60 Endnotes 29 Management’s Communication of Organization’s 62 Additional SHRM Resources Goals and Strategies CONTENTS REVITALIZING A CHANGING WORKFORCE | 1 ABOUT THIS RESEARCH REPORT 2 | EMPLOYEE JOB SATISFACTION AND ENGAGEMENT The following report represents the findings from the SHRM Employee Job Satisfaction and Engagement Survey of 600 U.S. employees, conducted in November-December 2015. The purpose of the annual employee survey is to identify factors that influence overall employee satisfaction and engagement in the workplace. This information will provide insight on employee preferences and highlight key areas for organizations to consider as they develop and enhance initiatives for organizational improvement. The survey assessed 43 aspects of employee job satisfaction and 37 aspects of employee engagement. Each year the aspects are examined and modified, if necessary. The aspects are categorized into the following eight areas: CAREER BENEFITS WORK ENGAGEMENT DEVELOPMENT ENVIRONMENT OPINIONS COMPENSATION EMPLOYEE CONDITIONS FOR ENGAGEMENT RELATIONSHIPS ENGAGEMENT BEHAVIORS WITH MANAGEMENT The overall findings are explained in text and through supporting visual references. Analysis by trend data, demographic variables and other variables can be found in the Appendix. The research objectives of this report are to provide the following information: • An analysis of the importance of various contributors to employee job satisfaction, including statistically significant differences. • An analysis of the relationship between employee satisfaction levels of job satisfaction contributors. • A rating of the top five contributors to overall employee job satisfaction by demographic variables, including employee gender, age and job level. • An analysis of employee engagement through an engagement index computation. • Additional analyses by demographics, including employee gender, age and job level. REVITALIZING A CHANGING WORKFORCE | 3 FIGURE 1 EMPLOYEE JOB SATISFACTION 2005 - 2015 88% 86% 86% 84% 83% 82% 81% 81% 80% 79% 77% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 (n = 600) (n = 604) (n = 604) (n = 601) (n = 602) (n = 605) (n = 596) (n = 600) (n = 600) (n = 600) (n = 517) Note: Figure represents respondents who indicated they where “somewhat satisfied” or “very satisfied” with their current job. Percentages are based on a scale where 1 = “very dissatisfied” and 5 = “very satisfied.” “Neutral/Neither satisfied nor dissatisfied” were excluded from this analysis. Source: Employee Job Satisfaction and Engagement (SHRM, 2016) 4 | EMPLOYEE JOB SATISFACTION AND ENGAGEMENT EXECUTIVE SUMMARY OF U.S. EMPLOYEES REPORTED OVERALL SATISFACTION WITH THEIR CURRENT 88% JOB, MARKING THE HIGHEST LEVEL OF SATISFACTION OVER THE LAST 10 YEARS. This year presents the greatest proportion of employees satisfied with their current job since SHRM first administered the Employee Job Satisfaction Survey in 2002. In 2015, 88% of U.S. employees reported they were FIGURE 2 satisfied with their job overall, with 37% reporting they were very satisfied and 51% reporting they SATISFACTION WITH CURRENT JOB were somewhat satisfied. This percentage marks the AND ORGANIZATION 51% highest level of satisfaction over the last 10 years. 45% 37% 40% Since 2013, the percentage of satisfied employees has been trending upward. Nevertheless, it is evident that a larger portion of employees are satisfied only to a certain extent, which signals the possibility for improvement. Similar attitudes were found with satisfaction toward employers: 45% indicated being somewhat satisfied and 40% indicated being very satisfied with their organization. 5% 4% 7% 10% Not surprisingly, as the economy has remained relatively stable over the last couple of years, organizations may have found themselves being able to reintroduce incentives and perks that had Current Job Current Organization been reduced or eliminated as a result of the Great Note: n = 517-521. Figure represents respondents who indicated they were Recession. Conversely, employees have more flexibility “somewhat satisfied” or “very satisfied” with their current job or organization. Percentages are based on a scale where 1 = “very dissatisfied” and 5 = “very to seek out employment opportunities that better satisfied.” “Neutral/Neither satisfied nor dissatisfied” were excluded from this fit their needs and wants rather than remain in a analysis. position for its job security. Forty-five percent of Source: Employee Job Satisfaction and Engagement (SHRM, 2016) employees reported that they would be likely or very likely to look for other jobs outside their current FIGURE 3 organization within the next year. LIKELIHOOD OF LOOKING FOR A JOB OUTSIDE CURRENT ORGANIZATION IN THE NEXT 12 MONTHS 32% 28% 27% 29% 27% 29% 22% 23% 22% 22% 21% 17% Very unlikely Unlikely Likely Very likely 2015 2014 2013 Note: n = 583-600. Source: Employee Job Satisfaction and Engagement (SHRM, 2016) REVITALIZING A CHANGING WORKFORCE | 5 EXECUTIVE SUMMARY Top Five Contributors to Employee Job Satisfaction Respectful treatment of all employees at all levels was rated as very important by 67% of employees in 2015, making it the top contributor to overall employee job satisfaction for the second year in a row (see Figure 4; see trend data for importance of job satisfaction contributors in Table 4 of the Appendix). The second consecutive appearance of this aspect at the top of the list of job satisfaction contributors supports the theory that although employees do place importance on financial features of a job such as pay and benefits, they consider culture and connection to be of utmost importance. Feeling appreciated for their time and efforts creates a bond between employees, management and their organization. FIGURE 4 Very Important JOB SATISFACTION ASPECTS RATED AS VERY IMPORTANT AND VERY SATISFIED BY EMPLOYEES Very Satisfied 67% 44% Overall corporate culture (e.g., organization’s reputation, work ethics, Respectful treatment of all employees at all levels (1) 31% 28% values, working conditions) (13) 63% 43% Compensation/pay, overall (2) Teamwork within department/business unit (14) 23% 26% 60% 43% Meaningfulness of job (understanding
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