SOURCE: Kenexa

Kenexa

August 11, 2009 11:00 ET

The Kenexa Research Institute Finds That Employee Confidence Increased in the Second Quarter 2009

U.S. Employee Confidence Rose 5.3% Since March

WAYNE, PA--(Marketwire - August 11, 2009) - Kenexa® (NASDAQ: KNXA), a global provider of business solutions for human resources, today announced the results of its employee confidence study, a quarterly measure of worker opinions and component of the forthcoming Kenexa Composite.

Employee confidence has been found to relate to multiple economic and business performance outcomes at the individual, organizational, industry and country levels as well as being predictive of consumer confidence.

A high level of employee confidence is achieved when employees perceive their organization as being effectively managed and competitively positioned, and believe they have a promising future with their organization, job security, and skills that are attractive to other employers. Employee confidence influences individual behavior and has implications for organizational performance and economic conditions.

In June 2009, the global employee confidence index score was 98.9. Brazil (107.2), China (102.3), France (101.4) and Russia (100.9) had the highest levels of employee confidence, while Italy (97.8), Spain (96.0) and Japan (93.8) had the lowest levels. The United States' employee confidence index score was 98.9.

Jeffrey Saltzman, principal at Kenexa, stated that, "In the second quarter of 2009, employees from all of the studied countries reported an increase in employee confidence scores, becoming more positive, with the exception of Japan. China improved the most since the first quarter of 2009 (up 12.5 points). Interestingly, it was recently reported that China's economy grew by 7.9% in the second quarter, evaluating this as a surprisingly strong showing given the world economic crisis."

Saltzman continued, "While most countries improved in the second quarter over the first, we saw especially strong gains in Russia, Germany, France and India. The countries with the smallest gains were Japan, Spain, Canada and the U.K. These rankings also match a recent report; there is exceptionally high unemployment in Spain; the U.K.'s economy is posting steep drops, which are dashing hopes for a quick recovery; and, Germany's economic performance implies that the recession there could end sooner than expected."

What had been the lowest scoring component of confidence, job security and having a promising future, has now been replaced by a worker's ability to find employment elsewhere. Saltzman continued, "This illustrates that the notion of a jobless recovery is very much in alignment with how the typical employee feels."

There was an increase in employees who reported that their economic well-being will improve over the next six months. However, there are still quite a few who are worried about their current financial situation to a "very great extent," with 35% of U.S. employees reporting concern, down from 40% in December 2008.

About the Kenexa Employee Confidence Index™

The Kenexa Employee Confidence Index™ (ECI) measures the degree of confidence employees have in their employers' marketplace competiveness and their own careers. The ECI is measured quarterly using opinions from workers in Brazil, Canada, China, France, Germany, India, Italy, Japan, Russia, Spain, the United Kingdom and United States. Kenexa's ECI was started in June 2008 and was normalized for each country to equal 100. Subsequent scores are reported in percents above or below that starting point. Data are available by country, industry, age, gender and job type.

About the Kenexa Composite™

The Kenexa Composite™ is a country-level indicator of economic health and employment conditions. Using a combination of the Kenexa Employee Confidence Index (ECI) and the Kenexa Jobs Index, the Kenexa Composite tracks labor demand and employee optimism in the 12 largest economies, accounting for 73% of the world's GDP.

The Kenexa Jobs Index™ is comprised of a fixed set of Forbes Global 2000 organizations and gauges their hiring activity. These organizations use Kenexa's large-scale recruiting solutions.

About Kenexa

Kenexa® provides business solutions for human resources. We help global organizations multiply business success by identifying the best individuals for every job and fostering optimal work environments for every organization. For more than 20 years, Kenexa has studied human behavior and team dynamics in the workplace, and has developed the software solutions, business processes and expert consulting that help organizations impact positive business outcomes through HR. Kenexa is the only company that offers a comprehensive suite of unified products and services that support the entire employee lifecycle from pre-hire to exit. Additional information about Kenexa and its global products and services can be accessed at www.kenexa.com.