SHRM-Employee-Job-Satisfaction-Engagement.pdf

8/17/2019 SHRM-Employee-Job-Satisfaction-Engagement.pdf

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2012 Employee Job Satisfactionand Engagement

How Employees Are Dealing With Uncertainty

A R e s e a r c h R e p o r t b y t h e S o c i e t y f o r H u m a n R e s o u r c e M a n a g e m e n t ( S H R M )


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Media ContactsKate Kennedy

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Table of Contents

About This Research Report ......................................................................... 1

Executive Summary: Employees Are Focusedon Meeting Goals and Using Their Skills at Work.........................................2

Survey Results: Employee Job Satisfaction ..................................................8

Career Development .......................................................................................................9Opportunities to Use Skills and Abilities .................................................................9Career Advancement Opportunities Within Organization ................................10Organization’s Commitment to Professional Development .................................11Job-specific Training ..................................................................................................12Career Development Opportunities ........................................................................12Paid Training and Tuition Reimbursement Programs.........................................13Networking ..................................................................................................................13

Employee Relationship with Management ............................................................... 15

Communication Between Employees and Senior Management ........................15Relationship with Immediate Supervisor .............................................................. 16Management’s Recognition of Employee Job Performance ................................ 16

Autonomy and Independence ................................................................................... 17

Compensation and Benefits .........................................................................................24Compensation/pay ..................................................................................................... 24Benefits ........................................................................................................................ 26Flexibility to Balance Life and Work Issues .......................................................... 28

Work Environment .......................................................................................................32Job Security ................................................................................................................ 32Organization’s Financial Stability .......................................................................... 33The Work Itself ........................................................................................................... 33Feeling Safe in the Work Environment .................................................................. 33

Overall Corporate Culture ....................................................................................... 34Relationships with Co-workers ............................................................................... 34Meaningfulness of Job ...............................................................................................35Contribution of Work to Organization’s Business Goals .................................... 36

Variety of Work ..........................................................................................................36Organization’s Commitment to Corporate Social Responsibility ......................37 Organization’s Commitment to a Diverse and Inclusive Workplace ................ 38Organization’s Commitment to a “Green” Workplace ......................................... 39

Survey Results: Employee Engagement ..................................................... 40

Engagement Opinions .................................................................................................. 41

2012 Employee Job Satisfactionand Engagement

A Research Report by the Society for Human Resource Management (SHRM)


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Engagement Behaviors .................................................................................................42

Conditions for Engagement .........................................................................................43

Conclusions .................................................................................................48

About the Research ..................................................................................... 51

Methodology .................................................................................................................. 51

Notations ........................................................................................................................ 51

About the Respondents ................................................................................................53

Appendix .....................................................................................................56

Endnotes ..................................................................................................... 75

Additional SHRM Resources ......................................................................76


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2012 Employee Job Satisfaction and Engagement

The following report presents the results of the 2012 SHRM Employee Job Sat-

isfaction and Engagement survey of U.S. employees. The objective of this annual

survey is to identify and understand the factors important to overall employee

job satisfaction and engagement. This knowledge helps organizations better

understand and appreciate employee preferences when developing programsand policies designated to influence job satisfaction and engagement. The survey

examined 35 aspects of employee job satisfaction and 34 aspects of employee

engagement. The job satisfaction and employee engagement aspects are divided

into seven topic areas—career development, relationship with management,

compensation and benefits, work environment, engagement opinions, engage-

ment behaviors, and conditions for engagement.

The overall results, illustrated in figures, are included throughout the report

along with corresponding text. More in-depth analyses are shown in tables

found in the Appendix; these include the following:

• A comparison of the level of importance of certain aspects to job satisfaction,

including statistically significant differences.

• A comparison of the level of employee satisfaction with certain aspects of job

satisfaction.

• An analysis of the top five job satisfaction aspects by demographic variables,

including organization size, employee job tenure, age, race, education and

gender.

• An analysis of the top five engagement aspects by demographic variables,

including employee age and gender.

• Additional analyses by demographic variables, including employee job tenure,

gender, race and age.

• Overall results for every year the survey was conducted to determine if there

have been significant changes in the span of a decade.

About This Research Report


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Executive Summary


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In 2012, 81% of U.S. employereported overall satisfactionwith their current job, with 38

of employees indicating theywere “very satisfied” and43% “somewhat satisfied.”

Several internal and external factors can influence employee job satisfaction

and engagement, and these factors may change over time. In the 10 years that

the Society for Human Resource Management (SHRM) has been conducting

its job satisfaction survey, there has been a noticeable fluctuation in employees’

overall satisfaction with their jobs. This fluctuation could be attributed tochanges within the workplace as well as economic, demographic and social

trends. According to this study, in 2012 81% of U.S. employees reported overall

satisfaction with their current job, with 38% of employees indicating they were

“very satisfied” and 43% “somewhat satisfied.” Employees’ overall satisfaction

with their jobs is down five percentage points from its peak of 86% in 2009 and

four percentage points above its low in 2002 (77%). Figure 1 illustrates the data

on overall employee job satisfaction from 2002 to 2012.

When it comes to employee engagement at work in 2012, on average, employ-

ees were only moderately engaged (3.6, on a scale of 1 to 5, where 1 is highly

disengaged, 3 is moderately engaged and 5 is highly engaged). Employee

engagement levels have not changed in the two years that SHRM has been

collecting this metric.

Employees Are Focused on MeetingGoals and Using Their Skills at Work

Figure 1 | Overall Employee Job Satisfaction Over the Years

2002(n = 604)

2004(n = 604)

2005(n = 600)

2006(n = 604)

2007(n = 604)

2008(n = 601)

2009(n = 602)

2010(n = 605)

2011(n = 596)

2012(n = 600)

Note: Figure represents those employees who answered “somewhat satisfied” or “very satisfied.”

Source: 2012 Employee Job Satisfaction and Engagement: A Research Repor t by SHRM

77% 77% 77%

80%79%

82%

86%

84%83%

81%


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4 | 2012 Employee Job Satisfaction and Engagement

83% of employees reportedthat they are determinedto accomplish their workgoals and confident theycan meet their goals.

Top Aspects Contributing to EmployeeEngagement in 2012

Employee engagement, which may or may not be aligned with employee job

satisfaction, is about the employee’s connection and commitment to the organi-

zation. The top five aspects contributing to employee engagement in 2012 were

very similar to the 2011 results; the main difference among the lists was that the

aspect “employees frequently feel that they are putting all their effort into their

work” made the top five list in 2012.

• 83% of employees reported that they are determined to accomplish their work

goals and confident they can meet their goals.

• 79% of employees reported satisfaction with their relationship with their

co-workers.

• 75% of employees were satisfied with opportunities to use their skills and

abilities at work.

• 72% of employees were satisfied with how their work contributed to their

organization’s business goals.

• 71% of employees reported that they frequently felt that they were putting alltheir effort into their work and that they were satisfied with their relationship

with their immediate supervisor.

The top five aspects contributing to employee engagement were also analyzed by

employee gender and age. Respondents from the Veterans generation and older

were the only group that placed relationship with their immediate supervisor

as the top factor contributing to their engagement. These data are shown in the

Appendix.

Top Five Contributors to EmployeeJob Satisfaction in 2012

Although many factors contribute to employee job satisfaction, only two have

remained among the top five aspects since 2002. In a recovering economy, none

of the aspects employees selected as the top five contributors to their job satisfac-

tion was a surprise.1

Opportunities to use skills and abilities (63%) displaced job security (61%) for

the number one spot of aspects most important to job satisfaction, placing job

security second in the list. Other aspects that rounded off employees’ top five

very important factors contributing to job satisfaction were:

Table 1 | Top Five Employee Engagement Aspects

2011

(n = 600)2012

(n = 600)

I am determined to accomplish my work goals and confident I can meet them 83% (1) 83% (1)

Relationship with co-workers 76% (2) 79% (2)

Opportunities to use skills/abilities 74% (3) 75% (3)

Contribution of work to organization's business goals 71% (5) 72% (4)

Relationship with immediate supervisor 73% (4) 71% (5)

I frequently feel that I’m putting all my effort into my work 70% 71% (5)



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• Compensation/pay (60%).

• Communication between employees and senior management (57%).

• Relationship with immediate supervisor (54%).

For the ranking of other aspects most important to employee job satisfaction,

refer to Figure 2 on page 7 and Table 6 in the Appendix.

The top five aspects of employee job satisfaction were also analyzed by several

employee demographics. Opportunities to use skills and abilities were the top

concern among employees, and in most cases, this aspect ranked among the top

two very important aspects of job satisfaction, regardless of employees’ tenure,

age, gender or organization staff size. Opportunities to use skills and abilities

were the third most important contributor to job satisfaction for respondents

employed at organizations with 500 to 2,499 employees and for employees

with three to five years and 11 or more years of tenure. For nonexempt (hourly)

nonmanagement employees, opportunities to use skills and abilities were ranked

as the fifth most important aspect of job satisfaction. These data are shown in

the Appendix.

What Do These Findings Mean for Organizations?

• Develop Existing Employees: Recent research has revealed that organiza-

tions are having difficulty recruiting employees with the right skills for their

open positions. The SHRM Leading Indicators of National Employment

(LINE™) show that HR professionals in manufacturing and service sectors

have reported a trend toward increased difficulty recruiting key candidates in

2012. One of the top contributors to job satisfaction and engagement among

employees is having the opportunity to use their skills and abilities at work.

Employees frequently have skills and abilities beyond the position for which

they were hired. HR professionals can help their organizations train and

promote their employees to fill positions that require higher-level skills. This will then open up positions that require lower skill levels, which, in turn, may

be easier to fill.

• Communicate About the Total Rewards Package: Employees rate com-

pensation/pay as the third most important aspect of their job satisfaction.

This aspect received a low rating when it came to employees’ actual level of

satisfaction: Only 22% of employees were very satisfied with compensation/

pay. There are several ways HR professionals can address compensation: share

information about the organization’s compensation philosophy, help employees

Table 2 | Top Five Aspects of Job Satisfaction Most Important to Employees: 2002 to 2012

2002(n = 604)

2004(n = 604)

2005(n = 601)

2006(n = 605)

2007(n = 604)

2008(n = 601)

2009(n = 601)

2010(n = 600)

2011(n = 600)

2012(n = 60

Opportunities to use skills/abilities — 47% 44% 51% (5) 44% 50% (4) 55% (4) 56% (3) 62% (2) 63% (1)

Job security 65% (1) 60% (4) 59% (4) 59% (3) 53% (2) 59% (1) 63% (1) 63% (1) 63% (1) 61% (2)

Compensation/pay 59% (4) 63% (2) 61% (2) 67% (1) 59% (1) 53% (3) 57% (3) 53% (5) 54% (4) 60% (3

Communication between employees andsenior management

62% (3) 54% 50% 48% 51% (4) 50% (4) 51% 47% 53% (5) 57% (4)

Relationship with immediate supervisor 49% 49% 46% 47% 48% 47% (5) 52% 48% 55% (3) 54% (5

Note: A dash (—) indicates that this question was not asked that year.Source: 2012 Employee Job Satisfaction and Engagement: A Research Repor t by SHRM


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Employers can build a bridgebetween employees and seniormanagement by training theirline managers regularly andinvolving them in strategymeetings and activities.

understand how their compensation/pay is determined and frequently com-

municate to employees what their total rewards package includes.

• Build a Bridge Between Employees and Senior Management: Employee

engagement and job satisfaction should not be something that HR profession-

als and their organizations measure once a year. They need to be built into an

organization’s day-to-day activities. Employee engagement and job satisfaction

should be the shared responsibility of both employees and the organization.

How can this be achieved? Two of the top five contributors to employee jobsatisfaction were relationship with immediate supervisor and communication

between employees and senior management. These two aspects were also

high on employees’ list of engagement aspects. Clearly, employees value their

relationship with management, and they are looking for ways to make this

relationship more effective, which, in turn, will likely increase employee satis-

faction, engagement and productivity. Employers can build a bridge between

employees and senior management by training their line managers regularly

and involving them in strategy meetings and activities. Doing so will enable

line managers to better understand the organization’s vision and share it with

their direct reports. These managers can complete the information-sharing

loop by sharing with senior management feedback from the employees. Line

managers who are encouraged to be open to what their employees say and then

push this feedback up are key in ameliorating the communication gap.


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Figure 2 | Very Important Aspects of Employee Job Satisfaction

Opportunities to use skills and abilities (1)

Job security (2)

Compensation/pay (3)

Communication between employees and senior management (4)

Relationship with immediate supervisor (5)

Benefits (6)

Organization’s financial stability (7)

The work itself (7)

Management’s recognition of employee job performance (8)

Autonomy and independence (9)

Feeling safe in the work environment (10)

Overall corporate culture (10)

Flexibility to balance life and work issues (11)

Career advancement opportunities (12)

Relationships with co-workers (13)

Meaningfulness of job (14)

Organization’s commitment to professional development (15)

Job-specific training (15)

Contribution of work to organization’s business goals (16)

Career development opport unities (16)

Variety of work (17)

Organization’s commitment to corporate social res ponsibility (18)

Paid training and tuition reimbursement progr ams (18)

Networking (19)

Organization’s commitment to a diverse and inclusive workplace (19)

Organization’s commitment to a “green” workplace (20)

Note: n = 600. Figure represents those who answered “very important.” Percentages are based on a scale where 1 = “very unimportant” and 4 = “very important.”


63%

61%

60%

57%

54%

53%

52%

52%

50%

48%

47%

47%

46%

42%

40%

39%

36%

36%

34%

34%

33%

28%

28%

27%

27%

17%


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Survey Results: Employee Job Satisfaction


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63% of employees ratedopportunities to use their skiland abilities at work as the

most important contributorto their job satisfaction,displacing job security forthe number one spot.

Career development is an opportunity for employees to continually take part

in more advanced or diverse activities (e.g., training, networking) that result

in improving skills, gaining new skills, taking greater responsibility at work,

improving their status and earning higher income. Employees rated only one of

the factors in the career development category—opportunities to use skills andabilities at work—in the top five very important contributors to job satisfaction;

in 2012, it was rated as the top aspect for the first time since 2004.

Opportunities to Use Skills and Abilities

Sixty-three percent of employees rated opportunities to use their skills and abili-

ties at work as the most important contributor to their job satisfaction, displac-

ing job security for the number one spot (see Table 1). This is the highest that

this category has been since 2004, when it was first added to the list of aspects

important to employee job satisfaction. Seventy-five percent of employees were

satisfied (responded “somewhat satisfied” or “very satisfied”) with this aspect.

This level of satisfaction placed opportunities to use skills and abilities at work

third on the list of factors contributing to employee engagement.

According to the September 2012 results of SHRM Leading Indicators of

National Employment (LINE),2 there has been an ongoing trend of steady job

growth in both the manufacturing and service sectors. While the economy

continues to recover, albeit slowly, employees may be feeling more secure about

their jobs. This sense of job security may be leading them to look for opportuni-

ties within their organizations to demonstrate their skills and abilities to prepare

themselves for career advancement within their organization or elsewhere.

When employees feel that they are using their skills and contributing fully to

the success of their organization, they are more satisfied with their jobs and

more engaged.

This element of job satisfaction appeared to be especially important to employees with college and post-graduate degrees compared with employees with a high

school diploma (Table 9). This aspect was also a higher priority for employees in

middle management than for nonexempt (hourly) nonmanagement employees.

Career Development


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Career advancement was a higher priority foremployees in middlemanagement than for those innonmanagement positions.

Career Advancement Opportunities Within Organization

As illustrated in Figure 4, 42% of employees reported that this factor was very

important to job satisfaction. Career advancement opportunities within the

organization have continued a gradual trend upward since 2007, when this

aspect was at a low of 27%. The increased importance of career advancementopportunities could be attributed to employees feeling that they’ve mastered

the responsibilities of their current positions and therefore are looking for more

challenging positions within their organizations. The increase in the importance

of this aspect may also be related to employees’ uncertainty about the economy,

making it more likely for them to desire advancement within their organization

rather than taking the risk of moving to a new employer.

Career advancement was a higher priority for employees in middle management

than for those in nonmanagement positions. Employees with some college edu-

cation found this aspect to be more important than did employees with a high

school diploma. This aspect was also more important to younger employees (age

47 and younger) than for employees 48-67 years of age. These data are shown in

Table 9.

As this aspect continues to trend up in importance, organizations need to pay

attention to employees’ satisfaction level with career advancement opportunities.

Employees are not particularly satisfied; only 46% of employees said they were

satisfied (18% were very satisfied and 28% were somewhat satisfied) with this

aspect. Career advancement opportunities could become a critical aspect of

employee engagement in the workplace. Employees who are using their skills and

abilities in their work and contributing fully in their organization could become

disillusioned if opportunities to advance in their career are not available within

the organization. These employees will be more likely to look for opportunities

outside of their organization as the economy improves. According to this study,

44% of employees indicated that they are likely to look for work outside their

organization in the next 12 months, whereas in 2011, this percentage was 36%.HR professionals are in a position to help their organizations develop coaching

or mentoring programs to promote knowledge sharing and internal networks

between experienced and more junior employees. HR professionals also can

identify positions for which succession planning is practical. These often include

key positions, positions with direct impact on strategic practices and those with

lengthy learning curves. HR can also be creative with the organization’s compen-

sation and rewards programs to motivate and retain top performers.

Figure 3 | Importance of Opportunities to Uses Skills and Abilities

Very unimportant Unimportant Important Very important

(n = 600)


2%

32%

3%

63%


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2012 Employee Job Satisfaction and Engagement |

Organization’s Commitment toProfessional Development

Professional development opportunities (e.g., attending training or conferences,

obtaining certifications) are meant to develop or enhance employees’ skills

and knowledge so that they can use this information in their current position,meet their professional and personal goals and build their résumé for future

jobs. Figure 5 depicts the relationship between the organization’s commitment

to professional development and employee job satisfaction. While only 36% of

employees rated this aspect as very important to job satisfaction, 54% of employ-

ees reported being satisfied with their organization’s commitment to professional

development. This aspect of job satisfaction was valued more by employees in

middle-management positions than by nonmanagement hourly employees.

During the current recession, professional development was among programs

affected by budget cuts. Though budgets are still lean, investing in the develop-

ment of their employees will help organizations fill their mission-critical posi-

tions. With the ongoing economic recovery, organizations are reporting difficulty

finding qualified candidates for their open positions, according to the September2012 SHRM LINE.3 In addition, a December 2011 SHRM survey showed that

23% of organizations believe that they are facing global competition for talent.4

One way organizations can continue to make sure their employees grow and

develop is to take advantage of web-based training, which is more cost-effective

than face-to-face training such as seminars or conferences. Employees can be

trained at their desks without incurring the travel-related cost of professional

development.

Figure 4 | Importance of Career Advancement Opportunities


(n = 600)


4%

40%

15%

42%

Figure 5 | Importance of Organization’s Commitment to Professional Development


(n = 600)


4%

50%

10%

36%


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Employees with some collegeeducation viewed careerdevelopment opportunitiesas more important thandid employees with ahigh school diploma.

Job-specific Training

Employers may offer job-specific training to provide employees with the relevant

skills to enable them to perform their duties efficiently. Job-specific training is

also necessary to fill a newly hired employee’s skills gap. The immediate applica-

tion of skills acquired through such training may boost employee confidence

and productivity. Similar to the organization’s commitment to professional

development, 36% of employees viewed job-specific training as very important to

their job satisfaction (see Figure 6) and 57% were satisfied with it. There were nosignificant differences among employee demographic variables.

Career Development Opportunities

Through on-the-job learning experiences, cross-training opportunities, stretch

goals and other mechanisms to use skills beyond what is required by their

position, employees can enhance their skills and competencies. These prospects

help employees determine the next step in their career, either within or outside

the organization. One-third (34%) of employees indicated that career develop-

ment was very important (see Figure 7), and 48% were satisfied with this aspect.

In 2012, employees viewed career development as a less important contributor

to job satisfaction compared with 2002. It was a higher priority for employees

in large organizations (25,000 or more employees) compared with employees in

smaller organizations (fewer than 100 employees). Employees with shorter job

tenure (less than two years) were more concerned with career development than

were employees employed at their organizations for 16 or more years. Employees

with some college education viewed career development opportunities as more

important than did employees with a high school diploma (Table 9).

Figure 6 | Importance of Job-specific Training


(n = 600)


3%

50%

12%

36%

Figure 7 | Importance of Career Development Opportunities


(n = 600)


4%

47%

15%

34%


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Paid Training and Tuition Reimbursement Programs

Only 28% of employees believed paid training and tuition reimbursement

programs were very important to employee job satisfaction (Figure 8), and 47%

said they were satisfied with this aspect. Through paid training and tuition

reimbursement programs, employers support employees who want to reach their

career goals by continuing their education. In a 2012 SHRM study, many HR

professionals reported that their organizations offered educational assistance

to their employees: 61% offered undergraduate educational assistance and 58%offered graduate educational assistance.5

Female employees deemed this aspect to be more important than did their

male counterparts. Employees with some college education also placed more

importance on this factor than did employees with post-graduate or high school

education. In addition, this aspect was more important to employees in larger

organizations (500 to 2,499 employees) compared with employees in smaller

organizations (fewer than 100 employees), and black employees viewed this

aspect as more important than white employees did (Table 9).

Networking

Employees viewed networking as one of the least important contributors to their

job satisfaction, as shown in Figure 9. Only 27% of employees said networking

was very important to job satisfaction. However, networking was v iewed as

more important in 2012 than in 2004, when it was first added to the list of

job satisfaction aspects. The upward trend of networking could be a result of

improved technology and the use of social networking in the workplace through

sites such as LinkedIn, Facebook and SHRM Connect. HR professionals in a

SHRM study indicated that only 31% of organizations track employee use of

social networking services on company-owned computers or company-owned

handheld devices.6 Networking may not be particularly important to employee

satisfaction, but building alliances can be valuable when looking for job leads

or clients. Through networking, employees can obtain career-related guidance

and benefit from the experiences and perspectives of others. Fifty-three percent

of employees reported their satisfaction with networking as a contributor to job

satisfaction. Employees with some college education placed more importance

on this aspect than did employees with a high school diploma, as did employees

in middle-management position compared with professional and nonexempt

nonmanagement employees (Table 9).

Figure 8 | Importance of Paid Training and Tuition Reimbursement Programs


(n = 600)


8%

43%

21%28%


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Figure 9 | Importance of Networking


(n = 600)

Source: 2012 Employee Job Satisfaction and Engagement: A Research Report by SHRM

6%

46%

21% 27%


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As organizations emerge frothe recession, it is importantfor the senior management

team to communicateeffectively about theorganization’s businessgoals, policies and vision.

The relationship an employee has with his or her supervisor is a central

element to the employee’s affiliation to the organization, and it has been

argued that many employee behaviors are largely a function of the way

they are managed by their supervisors. One of the components of a good

relationship is effective communication. When there are open lines ofcommunication (e.g., encouraging an open-door policy), supervisors can

respond more effectively to the needs and problems of their employees. Effective

communication from senior management can provide the workforce with

direction. In addition, management’s recognition of employees’ performance

through praise (private or public), awards and incentives is a cost-effective

way of increasing employee morale, productivity and competitiveness.

Communication Between Employeesand Senior Management

As shown in Figure 10, 57% of employees reported that communication between

employees and senior management was very important to employee job satisfac-

tion. This aspect has been in the list of top five contributors to employee jobsatisfaction five times since 2002. Among employees with tenure of 11 to 15

years, this aspect was rated first out of all aspects (Table 11).

As organizations emerge from the recession, it is important for the senior

management team to communicate effectively about the organization’s business

goals, policies and vision. This will help actively engage employees, provide

employees with direction and foster trust and respect. Frequently, employees are

concerned about the repercussions of bringing forth suggestions and concerns to

Employee Relationship with Management

Figure 10 | Importance of Communication Between Employees and SeniorManagement


(n = 600)


2%

38%

4%

57%


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The relationship employeeshave with their supervisors isdirectly connected to theirsuccess and growth at work.

management. Employees need to be encouraged to do so without fear; otherwise,

creativity and innovation may be stifled. Organizations use different methods to

encourage feedback and communication between employees and senior manage-

ment—for example, employee surveys, focus groups, town hall meetings and

suggestion boxes.

Employees in middle-management positions and nonexempt nonmanagement

employees perceived this aspect to be more important than did professional

nonmanagement employees (Table 9). Fifty-nine percent of employees indicatedthat they are satisfied with communication between employees and senior man-

agement, suggesting that this may be an area for improvement in organizations.

Relationship with Immediate Supervisor

Employees rated their relationship with their immediate supervisor as more

important to their job satisfaction than benefits. This is the third time employees

rated this aspect among the top five contributors to job satisfaction (Tables 2

and 6).

The relationship employees have with their supervisors is directly connected totheir success and growth at work. Supervisors who develop a positive relation-

ship with employees may be more likely to learn their employees’ strengths and

weaknesses, making it easier for supervisors to use their employees’ talents for

the good of the organization. Employees who have a favorable relationship with

their supervisors—a relationship in which they feel safe and supported—may

be more likely to go above and beyond what is required of them. They also may

share with their supervisor job-related problems or even personal problems,

which can be barriers to employee productivity. It is important that supervisors

set clear expectations and provide feedback about work performance so as to

avoid any potential frustrations. Nearly three-quarters (71%) of employees were

satisfied with this aspect of job satisfaction.

The relationship with one’s immediate supervisor was cited as important morefrequently by middle-management employees than by professional and nonex-

empt nonmanagement employees (Table 9).

Management’s Recognition ofEmployee Job Performance

Management’s recognition of employee job performance is one of the ways that

organizations use to keep employees satisfied and engaged. According to a 2012

SHRM/Globoforce poll, 76% of employers report that they have an employee rec-

Figure 11 | Importance of Relationship with Immediate Supervisor


(n = 600)


2%

40%

4%

54%


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ognition program.7 However, when employees were asked about the importance

of management’s recognition of employee job performance, only 50% indicated

that this aspect was very important to their job satisfaction (see Figure 12).

What about employees’ satisfaction with this aspect? Employees may feel more

committed to their organization if they believe that their efforts are valued.

More than half (57%) of employees reported they were satisfied with manage-

ment’s recognition of employee job performance. Acknowledging and rewarding

employees’ job performance is important. Equally important are the behaviorsthat management rewards, which manifest the norms and culture across the

organization. For example, is management rewarding competition instead of

teamwork? Are managers that retain top performers recognized? Does the

organization reward employees who adhere to organizational values and ethics

over those who do not?

There were some differences in the assessment of this contributor to job sat-

isfaction among employee demographics. Employees who have been with the

organization for two years or less were more likely to connect management’s

recognition of employee job performance to their overall job satisfaction com-

pared with more tenured (16 or more years) employees. Middle-management and

nonexempt nonmanagement employees deemed this aspect more important than

did professional nonmanagement employees (Table 9).

Autonomy and Independence

Almost one-half (48%) of employees stated that autonomy and independence

were very important job satisfaction factors (see Figure 13). Providing employees

with increased freedom, flexibility and discretion to make decisions on the job

(e.g., scheduling of work and determining how it is to be done) can give them a

greater sense of responsibility for the outcomes of their work. Sixty-nine percent

of employees were satisfied with their level of autonomy and independence.

Employees in executive and middle-management positions valued autonomy and

independence more than employees in nonexempt nonmanagement positions did

(Table 9). Autonomy and independence were rated as the fourth most important job satisfaction factor by executive-level employees (Table 14).

Figure 12 | Importance of Management’s Recognition of Employee Job Performance


(n = 600)


2%

40%

7%

50%


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More than half (57%) of employees reportedthey were satisfied withmanagement’s recognition ofemployee job performance.

Figure 13 | Importance of Autonomy and Independence


(n = 600)


1%

47%

5%

48%


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Overall, the key advantagesin the youth bubble are theenergy and perspective ofthe new, young talent, whilethe challenge is recruiting,leveraging and retaining them

• Many workplaces today include members of four or five different

generations. What advantages and potential challenges does thisscenario present for HR professionals?

There has always been generational diversity in the workplace. But nowadays,there are three things that are different about generational diversity. Numberone: Due to the growing age bubble on one end and the youth bubble on theother end, all of the ordinary human capital management issues that track withlife and career stage issues are exaggerated. On the oldest end of the spec-trum, the key issues to grapple with are flexible retention, knowledge transferand succession planning. The advantage is that there is a tremendous amountof skill, knowledge, wisdom, institutional memory, relationships and maybe thelast vestiges of the old-fashioned work ethic that organizations can try to minefor value while the older, more experienced people are still active. The disad-

vantage, of course, is that all that value is going to retire at some point.

On the youngest end of the spectrum, the primary issues are attraction,selection, onboarding, up-to-speed training, performance management anda different kind of retention issue, what we call “the development investmentparadox:” An employer must develop new, young talent, but the more youinvest in developing them, the more you have to worry that they will sell yourinvestment in the free market. Overall, the key advantages in the youth bubbleare the energy and perspective of the new, young talent, while the challenge isrecruiting, leveraging and retaining them.

Expert Q&A

Bruce Tulgan, founder, RainmakerThinking, and author of Managing the Generation Mix


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The key opportunity for HRleaders is to zero in on the“under-management” problemand help mid-level leaders getback to the basics of strong,

highly engaged management.

Meanwhile, in the middle of the spectrum, hiding below the radar, is the“under-management” problem. So much of the supervisory burden falls onmid-level leaders, who tend to be in the middle of the generational spectrum,and for numerous reasons there is an epidemic of “under-management” com-ing from mid-level leaders down the chain of command, resulting in a cascadeof problems. The key opportunity for HR leaders is to zero in on the “under-management” problem and help mid-level leaders get back to the basics ofstrong, highly engaged management.

Number two: Since the logic of “seniority” has been on the decline in theworkplace, seniority alone has not been sorting out age difference as a cause ofinterpersonal issues among co-workers and between employees and supervi-sors. It used to be that the older, more experienced people were typicallysenior to the younger, less experienced people, and this did a lot of the workof sorting out age difference as a source of issues. Of course, everyone wants acustom deal nowadays. Nobody wants to pay their dues and climb the ladderthe old-fashioned way. The advantage is that people of all ages can now workharder, smarter, faster and better, and try to compete for the special rewardsthey want. The challenge is that the younger, less experienced people oftenlack context, are in a hurry for responsibility and reward, and are impatientlyresentful of the older, more experienced people in their way. Meanwhile, theolder, more experienced people often resent the young upstarts for not beingwilling to pay their dues and wait their turn. This can be particularly challengingwhen the younger, less experienced people are in positions of greater authoritythan some of the older, more experienced people. (The military has dealt withthis challenge for a long time, with young second lieutenants who outrank older,much more experienced NCOs. For this reason, I sometimes call this the “younglieutenant problem.”)

Number three: Because we are living through the most profound changesin our economy, society and workplace since the Industrial Revolution, all ofthe ordinary advantages and challenges that normally come along with anydiversity issue are intensified and also confused because of the temporal natureof generational issues. Everybody is dealing with tremendous change anduncertainty. Globalization and technology are going through historic iterationsmultiple times in a decade. Institutions are in a state of constant flux. Informa-tion is in a constantly growing tidal wave. Immediacy is accelerating with no endin sight. And individuals are constantly rediscovering the need for self-reliance.The oldest, most experienced people feel over and over again like the rug is be-ing pulled out from under them. The youngest, least experienced people havenever known it any other way. Instead of the older folks knowing it all, everythingis always new. The obsolescence curve has become so steep that the learningcurve for all is constant all the time, thus removing many of the advantages ofage and experience. Meanwhile, the old-fashioned basics like poise, judgmentand wisdom remain the kind of knowledge on which the learning curve cannotbe accelerated, and yet many younger, less experienced people simply cannot

be made to appreciate. As a result, it is more important that we address someof the basic diversity issue components of generational difference: We need tohelp folks better understand where people of different generations are comingfrom and where they are headed, learn to better appreciate those differences,and learn to leverage them.


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Less experienced workersare least likely to believe anyclaims or offers of job security.

• Job security and compensation are traditionally among the mostfrequently cited factors for employees’ job satisfaction. Whatdo workers from different generations value more (or less) whendetermining their happiness on the job?

Among those of all generations, most workers have in common a growingsense that their employment relationships are primarily transactional in nature.The older Boomers sometimes have an uneasiness admitting that money (as

opposed to mission or professional commitment) is the primary quid pro quo inthe employment relationship. The younger the person, the less likely they are tomanifest that uneasiness.

On the flip side, the younger, less experienced workers—Generation Z andGeneration Y—are least likely to believe any claims or offers of job security.Boomers may be the ones who have been burned by offers or claims of longer-term security, but they still want to believe when such offers or claims are madeto them. To Gen Yers and Gen Zers, “job security” is not a meaningful concept.What is more, “security” and long-term employment are not part of the sameequation. For people of all ages, increasingly, a much more meaningful conceptis “career security,” and that comes from cutting-edge technical skills, highlydeveloped transferable skills, relationships with decision makers, and tangible

results that prove an individual’s ability to add value.

Beyond that, it should be noted that the older the employee, our researchshows, the more likely the individual is to think that financial compensationshould align with “seniority” and experience. The younger the employee, themore likely he or she is to think that financial compensation should align withshort-term measures of productivity and quality or value of goods/services inthe marketplace.

When it comes to rewards determining happiness, outside of compensationand “security,” we find that people of all generations tend to cite most often thesame five nonfinancial conditions of work: schedule, relationships, task choice,learning opportunities and location (or work space). Where we see generational

differences on this, in our latest research, is as follows:

• First, the younger the person, the more likely he or she is to rank learningopportunities and relationships at work higher. The older the person, themore likely the employee is to rank task choice higher.

• Second, the younger the person, the more likely he or she is to wantvariable arrangements in some or all of these factors. The older the person,the more likely the employee is to want fixed arrangements.

• Third, the younger the person, the more likely he or she is to want greatercontrol of these factors tied to performance measures. The older theperson, the more likely the employee is to accept less control of thesefactors, but control not tied to performance measures.

• Financial difficulties connected to the Great Recession are partly toblame for older workers delaying their retirement and remaining inthe labor force. Do you think this is a temporary trend, or do you seeworking longer as the “new normal,” and why?

Of course, economic conditions fluctuate, although the current economicdownturn has been deeper and more protracted than any since the 1930s.This comes at a different life and career stage for each generation. This sort ofaccident of history—and at what life and career stage it hits—is precisely what


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My advice to anyone of anyage trying to break into a newcareer right now is...get really good at managing yourself.

makes for generational differences. So it is significant that the Great Recessionis hitting around “retirement” age for older workers.

Indeed, many older people will work to later ages than they otherwise wouldfor purely financial reasons. This may or may not be temporary in and of itself. Ifwe are at the beginning of a long-term economic decline, it may be that privateand public resources are simply not sufficient to support retirement at ages asyoung as we have come to expect. Add to this presumably increasing life spans,

shifting perspective on age, as well as protracted time frames for resourceamortization, and the numbers alone could make working longer a longer-termtrend.

Beyond the economics, there are two additional factors to consider, both ofwhich suggest a longer-term trend. First, many organizations are expandingflexible part-time employment opportunities as a way to retain older and moreexperienced employees, especially those with significant skill, knowledge andexperience and, most of all, long-time employees with important institutionalmemory and relationships. As this sort of flexible retention strategy is on therise, it figures that an increased number of older people will take advantage ofthese opportunities to move up their retirement ages.

Second, many Boomers in the older (1946-1955 birth years) and younger (1956-1964) cohorts talk explicitly or implicitly in our interviews about “reinventing”retirement. There is a significant majority who cite an intention to try to careerdownshift in their current role in their current organization but continue to work,or to leave their current employer and then begin a part-time or full-time careerendeavor or pursue as a career endeavor an interest that has previously been anavocation or interest.

• On the other end of the spectrum, young adults today are not onlyfacing limited job opportunities, but lower compensation in manyindustries compared with the recent past. What advice would you giveto younger workers who are trying to break into a new career?

Again, for Generation Z, it will be a generation defining accident of history tolive through the Great Recession at the opening stages of their working lives.What makes it particularly challenging for the youngest, least experiencedpeople right now is that by virtue of their life stage, by definition, they have lessexperience, context and wisdom. These are the elements for which one cannotaccelerate the learning curve. On the other hand, they have their whole livesahead of them. Plenty of time is what they have that their older colleagues, bydefinition, do not have.

My advice to younger people in particular is to acknowledge and appreciateand take account of those advantages and disadvantages of youth. My adviceto anyone of any age trying to break into a new career right now is, first, the firstperson you have to manage every day is yourself. Get really good at managing

yourself. And then, second, be really good at managing complex shifting au-thority relationships… In other words, get really good at managing your bosses.

Step one: Once you really understand your role in any work context, then yournumber one responsibility is to play that role to the absolute best of your ability.That means contribute your very best and put in more time and effort no matterhow lowly, mundane or repetitive your tasks and responsibilities might seem inrelation to the overall mission of your organization.

Attitude matters—a lot. Effort, too, matters—a lot. Be high quality, high integ-rity and adaptable. Approach every relationship by staying focused on what


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Attitude matters—a lot. Effort, too, matters—a lot.

you have to offer the other person. Take personal responsibility for everythingyou say and do, hold yourself accountable and never make excuses. Don’t takeyourself too seriously, but always take your commitments and responsibilitiesseriously. Extend personal vulnerability, but never undermine your own cred-ibility.

Listen carefully. Exhibit respect and kindness. Celebrate the success of oth-ers. Be on time, or a little bit early. Don’t take long breaks. Don’t leave early,

and even stay a little late sometimes. Underpromise and overdeliver. Don’tbadmouth others and try not to speak of others unless they are present. Keepyour word. Keep confidences. Don’t keep other people waiting. Practice old-fashioned good manners.

Get lots of work done very well, very fast, all day long! Be a problem solver,not a complainer. Once you get really good at managing yourself, then steptwo is to get really good at managing your bosses. That means creating highlyengaged relationships with every single manager with whom you need to workfor any period of time. That means you need to have an ongoing dialogue withevery boss about exactly what that boss needs and expects from you.

What are the concrete actions within your control on which you will be mea-

sured and rewarded? You need to know, every step of the way, exactly what youare supposed to be doing and how you are supposed to be doing it. Then youneed to get regular, honest feedback every step of the way. If you get course-correcting feedback, double and triple check to make sure you know exactlywhat you are supposed to be doing and exactly how you are supposed to bedoing it. Every time you get course-correcting feedback, you will need to triplecheck to make sure you are correcting in the right direction.


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Compensation was ratedthe most important factorby employees with three to

five years of tenure, 16 ormore years of tenure andemployees in organization with500 to 2,499 employees.

To attract the best employees, companies must research the market in their area

as well as their industry to ensure that their total rewards package—salaries and

benefits—is in line with their talent strategy. Benefits for employees can include a

wide array of perks and other offerings; however, of primary importance to many

employees are health care, paid time off, retirement and family-friendly benefits.

Compensation/Pay

In 2012, six out of 10 employees indicated that compensation was very important

to their overall job satisfaction, putting it only three percentage points below

opportunities to use skills and abilities and only one percentage point below job

security. Compensation, along with job security, has consistently remained on

the list of the top five job satisfaction factors most important to employees.

As the economic climate continues to warm up and hiring rates increase, attrac-

tive compensation packages will be one of the strategies organizations compet-

ing for talent will use to recruit and retain the best employees. The SHRM LINE

report for September 2012 indicated that in August 2012 fewer manufacturersincreased compensation for new hires compared with August 2011. 8 How do

organizations retain the employees who helped them weather the recession?

Organizations might not be financially ready to significantly increase their salary

budget, but the best organizations take the time to find creative ways to reward

and engage their employees.

Compensation was rated as the most important factor by employees with three

to five years of tenure, 16 or more years of tenure and employees in organization

with 500 to 2,499 employees (Table 9). Fifty-eight percent of employees were

satisfied with compensation/pay overall.

When employees were asked if they had received a pay raise (e.g., merit increase,

cost of living increase) within the last 12 months, 50% reported receiving a raise

(Figure 15) and 39% indicated that they received bonus. These numbers are

higher than in 2011, when 45% of employees reported receiving a raise and 35%

indicated that they received a bonus.

Compensation and Benefits


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Employees were asked to rate the importance of the following four common

components of compensation (see Figure 16 and Table 10).

• Being paid competitively with the local market: Fifty-five percent of

employees rated this aspect as very important, and 57% were satisfied with it.

Compared with employees in small organizations (fewer than 100 employees),

employees in large organizations (2,500 to 24,999 employees) were more likely

to indicate that being paid competitively with the local market was important

to their job satisfaction.

• Base rate of pay: 52% of employees viewed base rate of pay as very important

to employee job satisfaction. Employees in larger organizations (500 to 2,499

employees) were more likely to connect this factor to their overall job satisfac-

tion compared with employees in small organization (fewer than 100 employ-

ees). Similar to being paid competitively, 57% of employees were satisfied withthis aspect.

• Opportunities for variable pay (bonuses, commissions, other variable pay,

monetary rewards for ideas or suggestions): Variable pay, or differential

pay, is often not added to the employee’s base pay and is dependent upon

performance. This allows organizations to better control their labor costs and

tie performance and pay together. One-third of employees (39%) reported that

this aspect was very important to job satisfaction, and 47% reported being

satisfied with it.

Figure 14 | Importance of Compensation/Pay


(n = 590)


0%

38%

2%

60%

Figure 15 | Compensation Change in the Last 12 Months

Yes No

Received pay raise (n = 513) Received bonus (n = 473)

Note: “Not applicable” responses were excluded from this analysis.


50% 50%

39%

61%


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• Stock options: This is another form of compensation that organizations

offer to their employees. Only 15% of employees rated stock options as very

important. Forty-five percent of employees whose organizations offered stock

options reported being satisfied with them. Executive, middle-management

and nonexempt nonmanagement employees found this aspect to be more

important than professional nonmanagement employees did.

Benefits

Fifty-three percent of employees rated benefits as a very important contributor

to their job satisfaction. In previous surveys, benefits have ranked among the

top two aspects of job satisfaction for employees since 2002 (Tables 2 and 6).

In 2012, for the first time since 2002, benefits slipped to sixth place, placing

it 10 percentage points below opportunities to use skills and abilities and four

percentage points below communication between employees and senior manage-

ment.

Almost two-thirds (61%) of employees were satisfied with their benefits pack-age—26% said they were very satisfied and 35% were somewhat satisfied.

Although benefits were rated as very important by more than half of employees,

only slightly more than one-quarter of employees were very satisfied with their

benefits—a difference of 27%. In a 2012 SHRM study, 73% of HR profession-

als reported that their organizations’ employee benefits offerings have been

negatively affected by the recession.9 This has undoubtedly added to the trend of

organizations increasingly shifting the costs of benefits to employees.

The only significant difference in the assessment of the importance of benefits to

overall job satisfaction was based on employee organization staff size. Benefits

were more important to employees in larger organizations (500 or more employ-

ees) than to those in smaller organizations (fewer than 100 employees).

Employers use benefits as one of the tools to recruit and retain top talent. HR is

tasked with finding the right mix of employee benefits that satisfy the personal

and financial needs of the current and potential workforce, given existing

business conditions and cost constraints. It is important for organizations to

take into account and anticipate the needs, preferences and makeup of their

workforce, in addition to the organizational strategy, when considering benefits

offerings. Finding a cost-effective and affordable benefits package is particularly

challenging, given the high costs of offering benefits, particularly health care.

Figure 16 | Very Important Compensation Aspects

Being paid competitively with the local market

Base rate of pay

Opportunities for variable pay

Stock options

Note: Figure represents those who answered “very important.” Percentages are based on a scale where 1 = “very unimportant” and 4 = “very important.” “Not applicable” responses

were excluded.Source: 2012 Employee Job Satisfaction and Engagement: A Research Repor t by SHRM

55%

52%

39%

15%


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Although benefits were ratedas very important by morethan half of employees, onlyslightly more than one-quarteof employees were verysatisfied with their benefits—

a difference of 27%.

Benefits for employees can include a wide array of perks and other offerings;

however, of primary importance to many employees are health care, paid time

off, retirement and family-friendly benefits (e.g., domestic partner benefits,

subsidized child care, elder care referral service, scholarships for members of

family). These benefits were further examined to learn about their importance to

employee job satisfaction, and these results are illustrated in Figure 18.

There were differences across employee demographic categories in the impor-

tance of these benefits (see Table 10). Health care/medical benefits were valued

more by middle-management employees than by executive employees and by

employees in larger organizations (500 or more employees) than by employees in

smaller organizations (fewer than 100 employees).

When it comes to retirement savings benefits (i.e., defined contribution plans

and defined benefit pension plans), middle-management and nonexempt employ-

ees placed greater importance on these benefits than did professional nonman-

agement employees, as did more tenured employees (16 or more years) compared

with less tenured employees (2 years or less), Generation X and Baby Boomers

compared with Millennials, and employees in larger organizations (2,500 or

more employees) compared with employees in small organizations (fewer than

100 employees). Black employees placed greater importance on retirement

benefits than did white employees.

Figure 17 | Importance of Benefits


(n = 565)


1%

41%

5%

53%

Figure 18 | Very Important Benefits Aspects

Health care/medical benefits

Paid time off

Defined contribution plans (e.g., 401(k), 403(b))

Defined benefit pension plans

Family-friendly benefits

Note: (n = 511 - 559) Figure represents those who answered “very important.” Percentages are based on a scale where 1 = “very unimportant” and 4 = “very important.” “Notapplicable” responses were excluded.


63%

55%

40%

36%

32%


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Female employees placed more importance on paidtime off benefits than theirmale counterparts did.

Family-friendly benefits were more important to employees with some college

education than to employees with a high school diploma as well as to employees

from larger organizations (2,500 to 24,999 employees) than to those from


Female employees placed more importance on paid time off benefits than their

male counterparts did. Paid time off benefits were also more important to

employees in larger organizations (500 to 2,499 employees) than to employees in


Employees’ overall satisfaction with aspects of benefits varied: 73% of respon-

dents were satisfied with paid time off, 61% with health care/medical benefits,

60% with defined contribution plans, 51% with defined benefit pension plans

and 50% with family-friendly benefits.

For more detailed information about the types of benefits and trends in benefits

offerings over the last five years, see the SHRM 2012 Employee Benefits research

report.10

Flexibility to Balance Life and Work Issues

How important is flexibility to balance work and life issues to employees? Nearlyone-half (46%) of employees rated it as very important to their overall job satis-

faction (Figure 19). The importance of this contributor, also referred to as work/

life fit, to job satisfaction increased by eight percentage points compared with

2011. More than two-thirds (67%) of employees were satisfied with their level of

flexibility to balance life and work issues. Employees with some college education

were more likely to indicate that flexibility to balance work and life issues was

important to their job satisfaction compared with employees with a high school

diploma (Table 9).

The SHRM 2012 Employee Benefits research report provides numerous ex-

amples of ways in which organizations provide flexibility for their employees.

These include flextime (offered by 53% of responding organizations), telecom-

muting (57%) and compressed workweeks (35%).11

Organizations can alsofind resources and research on effective and flexible workplace by visiting

http://whenworkworks.org and www.movingworkforward.org.

Figure 19 | Importance of Flexibility to Balance Life and Work Issues


(n = 571)


1%

43%

11%

46%


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Interestingly, managersunderestimated the importancof flexibility in the workplace.

Expert Q&A

Jeanne Meister, partner, Future Workplace, and co-author of The 2020 Workplace: How InnovativeCompanies Attract, Develop & Keep Tomorrow’s Employees Today (Harper Collins)

• Job security and compensation are traditionally among the most

frequently cited factors in determining employees’ job satisfaction.What else would you say is becoming equally important for workers’happiness on the job, and why?

Future Workplace just completed an online survey in May 2012, titled “MultipleGenerations @ Work.” The survey probed the expectations and needs of mul-tiple generations of 1,189 employees and 150 managers. The generations thatwere included in this online survey were Baby Boomers (born between 1946 and1964), Generation X (born between 1965 and 1976), Millennials (born between1977 and 1997) and Generation 2020 (born after 1997).

There were several findings on the range of expectations employees have foremployers. One of the most interesting was this: When knowledge workers

and managers were asked, “What makes an attractive employer?”, workplaceflexibility ranked the highest and, for employees, trumped competitive compen-sation and career progression. For all generations of knowledge workers, 35%cited workplace flexibility as their top priority in vetting prospective employers.For Millennials, this increased to 39%. Interestingly, managers underestimatedthe importance of flexibility in the workplace.

Also of interest, we looked at our research data from the point of view of Millen-nials and Generation 2020 (this included a sample of nearly 650), and we found anew set of benefits of interest to the youngest members of the workforce. Thesenew benefits include 1) the ability to share my ideas in the workplace, 2) the


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The amount of student debt inthe United States has reached$1 trillion, surpassing creditcard debt in this country.

opportunity to work for an organization whose values match my own, and 3) theassistance from my employer to build my financial literacy skills and help pay offstudent debt.

This last benefit is extremely interesting, as the amount of student debt in theUnited States has reached $1 trillion, surpassing credit card debt in this country.As prices soar, a college degree statistically remains a good lifetime investment,but it often comes with an unprecedented financial burden. This is a significant

issue, as the recent data shows that nearly one in 10 borrowers of student loanswho started repayment in 2009 defaulted within two years, and this rate isdouble that in 2005.

• Your book, The 2020 Workplace , discusses the effect that social mediahas had on talent management. What are the benefits—and perhaps anydrawbacks—that Twitter, Facebook and other mediums have brought tothe workplace?

The book examined myriad ways companies are using social media inside theenterprise. First, it is important to note that a small percentage of business lead-ers are using social media today (micro-blogging, internal social networks andwikis). According to a survey of 3,500 business leaders conducted by Deloitte,

only 18% believe social business is important to their organization today, but63% say it will be important to them in the next three years.

There are many ways the “early adopters” to social business are using socialmedia inside the enterprise:

Recruiting and outreach. The U.S. State Department, for example, hasmore than 295,000 followers on Twitter and is using it to not only recruit newprospective employees, but also to involve senior-level executives in a series ofoutreach discussions. For example, Undersecretary for Public Diplomacy TaraSonenshine recently held a Twitter Q&A to answer questions on everythingfrom exchange programs in Pakistan to who inspires her (answer: her children).In addition, Secretary of State Senior Advisor for Innovation Alec Ross spoke to

100 European Union public diplomacy professionals in Brussels recently, wherehe underscored the importance of social media. One point both executivesemphasized was that social media is a place for listening and discussing, not justtalking.

Employee learning. Procter & Gamble recently deployed a social learningplatform called “PULSE” to its 130,000-plus employees to connect people topeople, enable learning across geographies and provide a venue for knowledgesharing. P&G is just one example, and the company joins a range of others thatare using a social learning platform to reimagine and reinvent learning to bemore social, personalized and visual across the enterprise. Other early adoptercompanies across a range of industries include Deloitte, McAfee, Telus, Unisys,Cerner and Neiman Marcus.

When we query participants in our “Social Learning Boot Camp” on the benefitsand barriers of using social media inside their companies, the benefits noted bythese early adopter companies include knowledge sharing, increased produc-tivity and expertise location (i.e., being able to quickly find experts to solveimmediate problems). Interestingly, the barriers noted included the culture ofthe organization, a lack of understanding among senior management and a lackof training on how to reasonably use social media inside the organization.


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Employers must developa better understanding ofwhat motivates employeesto stay with a company.

• What are employers doing wrong today in terms of their efforts toretain top talent?

Employers must develop a better understanding of what motivates employeesto stay with a company, in other words, what are the key levers of attraction sotop talent decides to stay rather than jump ship? And this is a particularly impor-tant issue for companies recruiting and trying to retain top Millennial talent.

In the book, The 2020 Workplace, by the year 2020, Millennials will represent50% of the workforce, and they will soon outnumber Generation X predeces-sors, particularly in parts of the world where birth rates are low, such as Japan,Korea and parts of Western Europe. Millennials are already focused on how theycan learn and develop faster in the workplace. I like to call them “the learninggeneration,” since access to training and development and career progressionare top criteria for staying with an employer. I see five efforts employers canstart to retain top Millennial talent:

1) Workplace flexibility and work/life balance. These are often more im-portant than financial rewards. This generation is personally committed tolearning and development, and this often is their first choice benefit fromemployers. So employers need to re-examine their investment in learning

as well as their modes of delivery. After all, Millennials are asking for what allof us want in the workplace: the opportunity to have flexible schedules andlearn when and where we want to.

2) Immediate performance feedback. The annual performance review willslowly be replaced by immediate and often web-based tools to deliver real-time feedback and peer reviews. The companies that are early adopters tothis are those with large populations of Millennial workers, such as the profes-sional services firms and technology firms, where feedback on performancehappens each day.

3) Moving up the career ladder faster. Career progression is a top priorityfor young professionals, and in our “Multiple Generations @ Work” survey,

Millennials and members of the Generation 2020 ranked the opportunity forcareer progression higher than competitive compensation.

4) Using power of corporate social responsibility (CSR) to retain talent. Millennials are attracted to employer brands they admire as consumers. ACone Communications study of 1,800 Millennials found 88% were looking foremployers with CSR values that matched their own. So if a company has anextensive CSR program, this needs to be touted in recruiting and reinforcedin daily communication to employees.

5) Life skills training offered by employers. In our “Multiple Generations @Work” survey, we found that life skills training was becoming increasinglyimportant, and employees are viewing this as something employers shouldbe offering to them. Key topics for life skills include financial literacy, healthand wellness and language training.


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Job security, whichemployees rated as the topcontributor to job satisfaction

five times since 2002,placed second in 2012.

Employers understand that employees spend a large amount of their time at

work, and therefore, companies take steps to ensure the work environment is

conducive for employees to be productive, satisfied and engaged in the work-

place. In 2012, only one aspect from the work environment category was among

the top five contributors important to employee job satisfaction—job security.

Job Security

Job security, which employees rated as the top contributor to job satisfaction

five times since 2002, placed second in 2012. The displacement of job security

by opportunities to use skills and abilities could be an indication that employees

are feeling more optimistic about their jobs. Employees were asked about the

security of their current job (i.e., that they will not be laid off) in light of the U.S.

economy. Similar to 2011, 40% of employees in 2012 indicated that they were

not at all concerned about their job security. Two-thirds of employees also said

they were satisfied with job security in their current job. According to SHRM’s

Jobs Outlook Survey (JOS) report for the second quarter of 2012, 35% of orga-

nizations plan to increase staff in the second quarter of 2012 and 58% plan tomaintain current staff levels.12

Job security topped the list for nonexempt nonmanagement employees and

workers employed in organizations with staff size of 25,000 or more (for more

detailed data, see Tables 11 through 15 in the Appendix). Job security was more

important to employees with two years of college education than to employees

with a college degree (see Table 9).

Work Environment

Figure 20 | Importance of Job Security


(n = 599)


1%

36%

2%

61%


37/88


Employees with post-graduate degrees weremore likely than employeeswith a high school diplomato select the work itself as acontributor to job satisfaction

Organization’s Financial Stability

More than half (52%) of employees indicated that their organization’s financial

stability was very important to their job satisfaction. The improvement of the

economy and job market may have made this aspect slightly less important to

employees this year than in the previous years. Overall, 63% of employees were

satisfied with their organization’s financial stability.

The ranking of the organization’s financial stability varied across employees’demographics (see Tables 11-15). Employees aged 68 and older rated it as the sec-

ond top contributor to their job satisfaction. Baby Boomers and Gen Xers valued

this aspect more than Millennials did, as did middle-management employees

compared with professional nonmanagement employees (Table 9).

The Work Itself

“The work itself” aspect means how interesting, challenging or exciting an em-

ployee’s job is. It can be difficult for employees to remain motivated, satisfied and

engaged with their jobs if their work is not stimulating. More than half (52%) of

employees indicated that the work itself was very important to job satisfaction.These data are illustrated in Figure 22. The work itself tied with organization’s

financial stability for the seventh spot on the list of most important contributors

to employee job satisfaction. Seven out of 10 employees were satisfied with the

work itself.

There were differences among employee demographic categories in their as-

sessment of the importance of the work itself. Employees with post-graduate

degrees were more likely than employees with a high school diploma to select the

work itself as a contributor to job satisfaction. This aspect was also more valued

by executives and middle-management employees than by hourly employees

(Table 9).

Feeling Safe in the Work Environment According to SHRM research, 27% of HR p

SHRM-Employee-Job-Satisfaction-Engagement.pdf

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