SOURCE: Yoh

Yoh

April 05, 2016 10:19 ET

Worker Confidence Index™ Falls for 2nd Consecutive Quarter

Anxiety About Job Security, Raises, Promotions and Trust at Odds With Rising Unemployment, Aligns With Consumer Confidence

PHILADELPHIA, PA--(Marketwired - Apr 5, 2016) - American workers' confidence has reached a two-year low after falling for the second consecutive quarter, according to the national Worker Confidence Index™, a survey of U.S. workers from HRO Today Magazine and Yoh, the leading international talent and outsourcing company owned by Day & Zimmermann. The index gauges workers' perceptions of the four key drivers of confidence: the likelihoods of job loss, a promotion and a raise, as well as overall trust in company leadership.

The Worker Confidence Index showed confidence levels fell to their lowest level since this study's inception in mid-2014, down 3.3 points to 94.5 from the third quarter of 2015. Fourth quarter results followed a third quarter that was previously the lowest recorded score to date. The index showed steep declines across the board in job security, raise potential and trust in leadership.

The Worker Confidence Index has shown to be a leading indicator of future economic health in the U.S., showing identical rises and falls in worker confidence ahead of similar rises and falls in consumer confidence, indicating employees' confidence in their employment status impacts their buying power and the overall health of the American economy. The survey reveals that Americans' perceived job security appears to be a more accurate predictor of economic health and U.S. spending power than unemployment rates.

"Today's fast-changing employment dynamic is not only forcing HR and recruitment to think differently about the way they approach talent acquisition and management, but it's affecting the economic outlook as a whole as dissatisfied employees often lead to unhappy consumers," said Andy Roane, Yoh VP of Recruitment Process Outsourcing. "If companies want to improve relationships with employees they need to adopt formalized plans for engaging them, monitoring well-being and addressing it in a way that builds positive sentiment."

Study takeaways:

  • Less than one-quarter of Americans expect a raise
    Respondents' perceived likelihood of receiving a raise of at least 3 percent after their next review fell for the second consecutive quarter, to 24.6 percent from 25.7 percent.

  • Women are more confident than men in job security, less confident in likelihood of promotion and likelihood of a raise
    In the fourth quarter, 6.9 percent of women felt it was likely they'd lose their job in the next year, compared to 10.2 percent of men.

    Just 15.9 percent of women expected a promotion in the next year compared to 20.3 percent of men. Only 21.4 percent of women expected a raise by their next employee review, compared to 28.3 percent of men. 

  • Trust in company leadership at lowest point since 2014
    Trust in company leadership to make sound decisions for the company and its employees is at its lowest level since the study's inception, down to 39.6 percent from 42 percent the previous quarter.

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