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Employee Outlook: Spring 2013 - CIPD

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<strong>Spring</strong> <strong>2013</strong><br />

<strong>Employee</strong> <strong>Outlook</strong>


in partnership with<br />

<strong>CIPD</strong> <strong>Outlook</strong> Series<br />

The <strong>Employee</strong> <strong>Outlook</strong> is part of the <strong>CIPD</strong> <strong>Outlook</strong> series, which also<br />

includes the Labour Market <strong>Outlook</strong> and the HR <strong>Outlook</strong>. Drawing on<br />

a range of perspectives (and with the opportunity to compare data across<br />

our regular surveys), this triad of research enables the <strong>CIPD</strong> to offer unique<br />

insight and commentary on workplace issues in the UK.<br />

Others in the series<br />

Labour Market <strong>Outlook</strong><br />

The Labour Market <strong>Outlook</strong>, published in partnership with<br />

SuccessFactors, provides a quarterly update on key HR,<br />

economic and labour market statistics. The aim of the survey<br />

is to produce an industry-valued benchmark of key HR<br />

statistics that can be used by <strong>CIPD</strong> members, as well as those<br />

in government, policy and wider business circles.<br />

cipd.co.uk/labourmarketoutlook<br />

HR <strong>Outlook</strong><br />

The HR <strong>Outlook</strong> provides valuable insight and expert<br />

commentary on the HR profession. It explores the size and<br />

shape of HR functions, comments on the capabilities of HR<br />

professionals and outlines emerging trends and future priorities.<br />

cipd.co.uk/hroutlook


<strong>Employee</strong> <strong>Outlook</strong><br />

<strong>Spring</strong> <strong>2013</strong><br />

Contents<br />

Key findings 2<br />

Job satisfaction and engagement 5<br />

<strong>Employee</strong> attitudes towards managers 7<br />

Pressure at work 10<br />

Work–life balance 11<br />

<strong>Employee</strong> attitudes and the economic downturn 12<br />

Job-seeking 15<br />

Conclusions 16<br />

Background to the survey 17<br />

cipd.co.uk/employeeoutlook 1


Key findings<br />

Job satisfaction and<br />

engagement<br />

The <strong>Employee</strong> Engagement Index<br />

highlights that the proportion of<br />

engaged employees has grown<br />

slightly to reach 37% compared<br />

with 35% in the previous quarter;<br />

however, it is still below the levels<br />

of autumn 2012 (38%). Fewer<br />

employees are disengaged (3%<br />

compared with 4% in the last<br />

quarter) and the majority remain<br />

neutral (60%).<br />

The relationship between the Engagement<br />

Index scores and the quality of top–down<br />

and bottom–up communications is evident,<br />

urging organisations to improve both<br />

communication flow channels.<br />

With regard to the sector<br />

differences, voluntary sector<br />

employees remain the most<br />

engaged, with 55% engaged<br />

(compared with 41% in the<br />

previous quarter). Engagement<br />

levels in the public sector have<br />

grown too, from 29% last quarter<br />

to 33% this quarter, while the<br />

proportion of engaged employees<br />

in the private sector remains the<br />

same (37%).<br />

Despite the slight increase in the<br />

<strong>Employee</strong> Engagement Index,<br />

overall net job satisfaction levels<br />

are actually the lowest of the last<br />

year (+40 compared with +47 last<br />

spring). However, the voluntary<br />

sector has seen a sharp increase<br />

in satisfaction (+52 from +41<br />

last quarter, compared with +47<br />

last year) and now leads on job<br />

satisfaction levels.<br />

<strong>Employee</strong> perceptions of<br />

their managers<br />

Despite a drop in the scores last<br />

quarter, all sectors have seen some<br />

degree of improvement since winter<br />

2012/<strong>2013</strong>.<br />

The voluntary sector has seen a<br />

particularly positive change, with<br />

public sector scores also improving<br />

on all aspects of employee<br />

attitudes, specifically with regard<br />

to employees viewing directors and<br />

senior managers with confidence<br />

and trusting them. In contrast, trust<br />

in leaders has been deteriorating<br />

in the private sector for three<br />

consecutive quarters.<br />

Line managers could become<br />

conduits for translating top<br />

management’s vision to the front<br />

line, as almost two-thirds of<br />

respondents are satisfied with the<br />

relationship with their supervisor.<br />

Communication and<br />

advocacy<br />

Overall, employee perceptions<br />

of being informed about what is<br />

happening in the organisation have<br />

improved among the respondents,<br />

with 54% feeling fairly or fully<br />

informed about what is happening<br />

in the organisation, compared<br />

2 cipd.co.uk/employeeoutlook


<strong>Employee</strong> <strong>Outlook</strong><br />

<strong>Spring</strong> <strong>2013</strong><br />

with 51% last quarter. Similarly,<br />

the levels of satisfaction with<br />

employees’ ability to communicate<br />

their views upwards have improved<br />

considerably for the first time over<br />

four quarters, with +17 net agreeing.<br />

The quality of communications<br />

is the best in the voluntary sector,<br />

with 68% saying they are fully or<br />

fairly well informed about what<br />

is happening in the organisation<br />

(compared with 62% last quarter),<br />

with some improvement also<br />

seen in the public (51%, up from<br />

48%) and private sector (53%, up<br />

from 50%). Similarly, 50% in the<br />

voluntary sector are satisfied or<br />

very satisfied with opportunities<br />

for upward feedback (an 8%<br />

increase from the previous quarter),<br />

compared with 47% of employees<br />

in the private sector and only 36%<br />

of employees in the public sector.<br />

of employees experiencing<br />

excessive pressure at work (51%<br />

compared with 46% last quarter).<br />

Work–life balance<br />

The proportion of employees<br />

reporting the right balance between<br />

their home and work lives has risen<br />

only slightly to 57%, compared<br />

with 56% last quarter. Only 22%<br />

of those experiencing excessive<br />

pressure at work every day were<br />

able to manage an effective balance<br />

between their work and home lives.<br />

Voluntary sector employees appear<br />

to have recovered the levels of their<br />

work–life balance satisfaction to<br />

64% after a drop to 55% in the<br />

last quarter. In comparison, 57%<br />

of employees in the private sector<br />

and 55% of employees in the<br />

public sector are happy with their<br />

work–life balance.<br />

41%<br />

In spring <strong>2013</strong> the<br />

proportion of employees<br />

reporting excessive pressure<br />

at work every day or once<br />

or twice a week has reached<br />

41%, increasing to match<br />

the levels of autumn 2012.<br />

V<br />

There is a relationship between<br />

the Engagement Index scores<br />

and the quality of top–down and<br />

bottom–up communications, and<br />

this highlights the importance of<br />

improving both.<br />

Pressure at work<br />

In spring <strong>2013</strong> the proportion<br />

of employees reporting excessive<br />

pressure at work every day or<br />

once or twice a week has reached<br />

41%, increasing to match the<br />

levels of autumn 2012. This is<br />

compared with a drop to 38% in<br />

the last quarter. The public sector<br />

continues to lead on the proportion<br />

cipd.co.uk/employeeoutlook 3


V<br />

The proportion of<br />

employees reporting their<br />

organisation to have made<br />

redundancies or planning<br />

redundancies has decreased<br />

by 1% and 5% respectively<br />

in the public sector.<br />

<strong>Employee</strong> attitudes and the<br />

economic downturn<br />

Only 17% of employees think they<br />

are likely or very likely to lose<br />

their current job, compared with<br />

19% in the last quarter. Voluntary<br />

sector employees are still the most<br />

concerned.<br />

Private sector employees are most<br />

optimistic about finding a different<br />

job if they lose their current one<br />

(12% this quarter and in the<br />

previous quarter), against 9%<br />

across both quarters among public<br />

sector employees. In comparison,<br />

more voluntary sector workers<br />

now think they will struggle to find<br />

another job: only 6% currently<br />

think it would be easy or very easy,<br />

compared with 9% in the previous<br />

quarter. Older employees are more<br />

likely to think they would struggle<br />

to find another job if they lost<br />

their current one, while those aged<br />

25–34 are the most optimistic.<br />

Slightly fewer respondents<br />

have reported that they feel<br />

that their organisation has not<br />

been affected by the economic<br />

downturn (14% compared with<br />

15% in the last quarter). However,<br />

there is a small increase in the<br />

number of employees reporting<br />

that the organisation has made<br />

redundancies (34% up from 33%),<br />

cut back on training (22% up<br />

from 21%) or increased the number<br />

of hours people work<br />

(7% up from 5%).<br />

redundancies has decreased by<br />

1% and 5% respectively in the<br />

public sector. On the other hand,<br />

employees in the voluntary sector<br />

are increasingly more likely to<br />

experience redundancies, with an<br />

8% increase in the proportion<br />

of those reporting redundancies<br />

made, and a 15% increase in the<br />

percentage of those expecting<br />

redundancies.<br />

Of the three sectors, the<br />

organisations in the voluntary<br />

sector appear to have frozen<br />

recruitment (up 7% compared<br />

with winter), reduced the amount<br />

contributed to pensions (up 3%) or<br />

reduced the number of employee<br />

benefits/perks (up 2%).<br />

Job-seeking<br />

A slightly greater proportion of<br />

respondents are looking for a<br />

new job with a different employer<br />

(21% compared with 20% in the<br />

last quarter); this share is on the<br />

increase both in the private and in<br />

the public sector, particularly at the<br />

senior management level, and in<br />

financial intermediation (24%) and<br />

education (24%) sectors.<br />

Crucially, the stronger employees<br />

are motivated by the core purpose<br />

of their organisation, the less likely<br />

they are to be currently looking for<br />

a new job.<br />

In contrast to only slight<br />

changes in the private sector,<br />

the proportion of employees<br />

reporting their organisation to have<br />

made redundancies or planning<br />

4 cipd.co.uk/employeeoutlook


<strong>Employee</strong> <strong>Outlook</strong><br />

<strong>Spring</strong> <strong>2013</strong><br />

Job satisfaction and engagement<br />

The <strong>Employee</strong> <strong>Outlook</strong><br />

Engagement Index comprises<br />

a set of measures which are<br />

important to understanding the<br />

level of engagement an employee<br />

feels towards their organisation.<br />

The Index consists of 16 items,<br />

weighted and aggregated together<br />

to give an overall score (see below).<br />

The Engagement Index highlights<br />

that the proportion of engaged<br />

employees has grown slightly to<br />

reach 37% compared with 35% in<br />

the previous quarter; however, it<br />

is still below the levels of autumn<br />

2012 (38%). Fewer employees are<br />

disengaged (3% compared with 4%<br />

in the last quarter) and the majority<br />

remain neutral (60%).<br />

With regard to the sector<br />

differences, voluntary sector<br />

employees remain the most<br />

engaged, (55% engaged compared<br />

with 41% in the previous quarter).<br />

Engagement levels in the public<br />

sector have grown too, from 29%<br />

last quarter to 33% this quarter,<br />

while the proportion of engaged<br />

employees in the private sector<br />

remains the same (37%).<br />

When it comes to size, the smaller<br />

the organisation, the more engaged<br />

employees are. However, even<br />

though engagement is highest in<br />

micro businesses, it is on the decline<br />

for the second consecutive quarter,<br />

while the proportion of engaged<br />

employees in small, medium and<br />

large businesses is growing.<br />

Similarly to the previous quarter,<br />

the most engaged employees are<br />

the ones who have been in the<br />

organisation for the least amount<br />

of time: 56% of those who have<br />

been with the organisation for up<br />

to six months and 55% of those<br />

who stayed between six months<br />

and a year are engaged.<br />

<strong>Employee</strong> Engagement Index<br />

Factor<br />

Going the extra mile<br />

Alignment to organisation purpose<br />

Work–life balance<br />

Relationships with colleagues<br />

Satisfaction with role<br />

Attitude to senior managers<br />

Satisfaction with line manager/<br />

advocacy<br />

Items included in the factor<br />

I will often take on more work to help relieve my colleagues’ workloads.<br />

I will often work for more hours than those I am paid or contracted to do.<br />

I know very clearly what the core purpose of my organisation is.<br />

I am highly motivated by my organisation’s core purpose.<br />

I achieve the right balance between my home and work lives.<br />

Approximately how much of the time do you feel under EXCESSIVE pressure in your<br />

job<br />

I have positive relationships with my colleagues.<br />

My job is as challenging as I would like it to be.<br />

My organisation gives me the opportunities to learn and grow.<br />

I am satisfied with the content of my job role.<br />

Overall, how satisfied or dissatisfied would you say you are with your current job<br />

I have confidence in the directors/senior management team of my organisation.<br />

I trust the directors/senior management team of my organisation.<br />

Overall how satisfied, or dissatisfied, are you with the relationship you have with your<br />

immediate supervisor, line manager or boss<br />

How likely or unlikely would you be to recommend your organisation as an<br />

employer<br />

I don’t think my employer treats me fairly.<br />

cipd.co.uk/employeeoutlook 5


V<br />

Despite the slight increase in<br />

the <strong>Employee</strong> Engagement<br />

Index, job satisfaction levels<br />

are actually the lowest of<br />

the last year.<br />

Job satisfaction<br />

Despite the slight increase in the<br />

<strong>Employee</strong> Engagement Index,<br />

job satisfaction levels are actually<br />

the lowest of the last year (+40<br />

compared with +44 last quarter, and<br />

+47 in spring 2012).<br />

However, while overall job<br />

satisfaction has dropped, the<br />

voluntary sector has seen a sharp<br />

increase in satisfaction (+52 from<br />

+41 last quarter); this is against a<br />

smaller rise from +39 in autumn<br />

2012. The voluntary sector now<br />

leads on job satisfaction ratings,<br />

while the private sector has fallen to<br />

+45 (from +48 last quarter) and the<br />

public sector to +25 (from +33).<br />

Table 1: The extent to which employees are engaged at work, by gender, sector<br />

and size of organisation (%)<br />

Engaged Neutral Disengaged<br />

All 37 60 3<br />

Men 37 59 4<br />

Women 38 60 2<br />

Voluntary sector 55 45 0<br />

Private sector 37 60 3<br />

Public sector 33 63 4<br />

Micro businesses 56 44 0<br />

Small businesses 45 51 4<br />

Medium businesses 40 57 3<br />

Large businesses 34 61 4<br />

Table 2: The extent to which employees are engaged at work, by quarter (%)<br />

<strong>Spring</strong><br />

<strong>2013</strong><br />

Winter<br />

2012–13<br />

<strong>Spring</strong><br />

2012<br />

Engaged 37 35 38<br />

Neutral 60 61 59<br />

Disengaged 3 4 3<br />

Table 3: <strong>Employee</strong> net satisfaction, by sector and size of organisation (%)<br />

<strong>Spring</strong><br />

<strong>2013</strong><br />

Winter<br />

2012–13<br />

<strong>Spring</strong><br />

2012<br />

Overall +40 +44 +47<br />

Voluntary sector +52 +41 +47<br />

Private sector +45 +48 +47<br />

Public sector +25 +33 +45<br />

Micro businesses +53 +67 +65<br />

Small businesses +38 +45 +51<br />

Medium businesses +39 +36 +42<br />

Large businesses +30 +37 +38<br />

6 cipd.co.uk/employeeoutlook


<strong>Employee</strong> <strong>Outlook</strong><br />

<strong>Spring</strong> <strong>2013</strong><br />

<strong>Employee</strong> attitudes towards managers<br />

Attitudes to senior managers<br />

Despite a drop in the scores last<br />

quarter, all sectors have seen some<br />

degree of improvement in attitudes<br />

to senior managers in spring <strong>2013</strong>.<br />

The voluntary sector has seen a<br />

particularly positive change, with<br />

employees consistently agreeing<br />

that their directors and senior<br />

managers treat them with respect<br />

(+31 net agreement) and have trust<br />

(+19) and confidence (+23) in these<br />

leaders. The public sector scores<br />

have improved on all aspects of<br />

employee attitudes, particularly<br />

with regard to leaders’ clarity of<br />

vision (+1 from –7 last quarter)<br />

and employee trust (–25 from –32<br />

last quarter) and confidence (–22<br />

from –29) in them. Although these<br />

are still mainly negative scores,<br />

this is a positive development to<br />

employees’ perceptions of senior<br />

management, which has only<br />

slightly been matched by leaders’<br />

behaviours, specifically consulting<br />

employees on decisions (–34 from<br />

–42 last quarter) and treating<br />

them with respect (–7 from –20).<br />

In contrast, while these two areas<br />

have seen an improvement, private<br />

sector employees’ trust (+14 from<br />

+16 last quarter) and confidence<br />

(+32 from +36 last quarter) in<br />

leaders have been deteriorating in<br />

the sector for three consecutive<br />

quarters.<br />

Attitudes to line managers<br />

Line managers could become<br />

conduits for translating top<br />

management’s vision to the front<br />

line, as almost two-thirds of<br />

respondents are satisfied with the<br />

relationship with their supervisor:<br />

64% of employees in the private<br />

sector, 61% in the public sector and<br />

74% in the voluntary sector agreed<br />

or strongly agreed that they are<br />

satisfied with that relationship.<br />

68%<br />

V<br />

The quality of<br />

communications is the best in<br />

the voluntary sector, with 68%<br />

saying they are fully or fairly<br />

well informed about what is<br />

happening in the organisation.<br />

Table 4: Net agree scores, by sector (%)<br />

They consult employees<br />

about important decisions<br />

They treat employees with<br />

respect<br />

<strong>Spring</strong><br />

<strong>2013</strong><br />

Private sector Public sector Voluntary sector<br />

Winter<br />

2012–13<br />

<strong>Spring</strong><br />

<strong>2013</strong><br />

Winter<br />

2012–13<br />

<strong>Spring</strong><br />

<strong>2013</strong><br />

Winter<br />

2012–13<br />

–20 –23 –34 –42 +3 –18<br />

+19 +20 –7 –20 +31 +7<br />

I trust them +12 +14 –25 –32 +19 –2<br />

I have confidence in them +14 +16 –22 –29 +23 –1<br />

They have a clear vision<br />

of where the organisation<br />

is going<br />

+32 +36 +1 –7 +40 +13<br />

cipd.co.uk/employeeoutlook 7


Communication and<br />

advocacy<br />

Top–down and bottom–up<br />

communications are crucial for<br />

tackling the disconnect between<br />

the top management and the front<br />

line. Overall, employee perceptions<br />

of being informed have improved<br />

among the respondents, with 54%<br />

feeling fairly or fully informed,<br />

compared with 51% last quarter.<br />

Similarly, the levels of satisfaction<br />

with employees’ ability to<br />

communicate their views upwards<br />

have improved considerably for the<br />

first time over four quarters, with<br />

+17 net agreeing.<br />

The quality of communications is the<br />

best in the voluntary sector, with 68%<br />

saying they are fully or fairly well<br />

informed about what is happening in<br />

the organisation (compared with 62%<br />

last quarter), with some improvement<br />

also seen in the public (51%) and<br />

private sector (53%). Similarly, 50%<br />

in the voluntary sector are satisfied<br />

or very satisfied with opportunities<br />

for upward feedback (an 8% increase<br />

from the previous quarter), compared<br />

with 47% of employees in the private<br />

sector and only 36% of employees in<br />

the public sector.<br />

There is a relationship between the<br />

Engagement Index scores and the<br />

quality of top–down and bottom–up<br />

communications and highlights the<br />

need for organisations to further<br />

improve both communication flow<br />

channels.<br />

The improvement in the quality of<br />

communications has been mirrored<br />

by the increase in the number of<br />

employees in the voluntary sector<br />

likely or very likely to recommend<br />

their organisation as an employer<br />

(59% compared with 51% last<br />

quarter). This is compared with 49%<br />

in the public sector (4% increase on<br />

the previous quarter levels) and 51%<br />

in the private sector (no net change<br />

from the previous quarter).<br />

Table 5: Proportion of employees likely to recommend their organisation as an employer to others (%)<br />

All<br />

Private<br />

sector<br />

Public<br />

sector<br />

Confidence in leaders<br />

Trust in leaders<br />

Voluntary<br />

sector Agree Disagree Agree Disagree<br />

Very likely 19 (+2) 20 (+2) 14 (0) 24 (+1) 39 5 40 6<br />

Likely 32 (0) 31 (–2) 35 (+4) 35 (+7) 47 27 47 30<br />

Neither likely nor unlikely 23 (–3) 24 (–2) 20 (–6) 24 (+2) 10 39 10 36<br />

Unlikely 14 (+1) 13 (+1) 18 (+1) 11 (–7) 3 21 3 19<br />

Very unlikely 10 (0) 10 (–1) 12 (+1) 7 (–2) 1 9 1 9<br />

8 cipd.co.uk/employeeoutlook


<strong>Employee</strong> <strong>Outlook</strong><br />

<strong>Spring</strong> <strong>2013</strong><br />

Table 6: Proportion of employees feeling informed about what is happening within their organisation, by sector (%)<br />

All<br />

<strong>Spring</strong><br />

<strong>2013</strong><br />

Private sector Public sector Voluntary sector<br />

Winter<br />

2012–13<br />

<strong>Spring</strong><br />

<strong>2013</strong><br />

Winter<br />

2012–13<br />

<strong>Spring</strong><br />

<strong>2013</strong><br />

Winter<br />

2012–13<br />

I feel fully informed 13 14 11 10 8 15 12<br />

I feel fairly well informed 41 39 39 41 40 53 50<br />

I receive only a limited<br />

amount of information<br />

I get to hear very little<br />

about what goes on<br />

33 33 35 37 35 28 30<br />

12 13 14 12 16 4 8<br />

Table 7: Proportion of employees satisfied with the opportunities that exist to feed their views/issues/ideas upwards,<br />

net agree scores (%)<br />

All<br />

Net engagement<br />

Net trust in<br />

directors/senior<br />

management<br />

Very satisfied 12 +92 +84 +85<br />

Satisfied 32 +59 +40 +45<br />

Neither satisfied nor dissatisfied 30 +20 –16 –9<br />

Dissatisfied 22 –1 –62 –65<br />

Very dissatisfied 5 –27 –80 –85<br />

Net confidence in<br />

directors/senior<br />

management<br />

cipd.co.uk/employeeoutlook 9


Pressure at work<br />

In spring <strong>2013</strong> the proportion<br />

of employees reporting excessive<br />

pressure at work every day or once<br />

or twice a week has reached 41%,<br />

increasing to match the levels of<br />

autumn 2012. This is compared<br />

with a drop to 38% in the last<br />

quarter.<br />

Over half of all public sector<br />

employees (51%) feel excessive<br />

pressure at work either every<br />

day or once or twice a week,<br />

(compared with 46% last quarter).<br />

In comparison, the proportion of<br />

private sector employees reporting<br />

excessive pressure in their jobs has<br />

increased only slightly, from 35%<br />

last quarter to 38% and the same<br />

proportion of staff in the voluntary<br />

sector this quarter (41%) report<br />

excessive pressure at work every day<br />

or once or twice a week.<br />

There is a statistically significant<br />

difference in the exposure to<br />

excessive pressure at work and<br />

the perceptions of directors/senior<br />

management as having a clear vision<br />

of where the organisation is going.<br />

<strong>Employee</strong>s who agreed or strongly<br />

agreed that their senior team has<br />

such clarity of vision were less likely<br />

to experience excessive pressure at<br />

work every day or once or twice a<br />

week (38%) compared with those<br />

respondents disagreeing or strongly<br />

disagreeing with the presence of<br />

clear vision among directors/senior<br />

managers (54%).<br />

Table 8: Proportion of employees saying they are under excessive pressure at work… (%)<br />

All Men Women Private Public Voluntary<br />

Every day 13 14 13 12 19 9<br />

Once or twice a week 28 29 27 26 32 32<br />

Once or twice a month 26 28 25 27 24 29<br />

Less frequently than once a month 24 22 26 25 21 21<br />

Never 9 8 9 9 6 9<br />

Table 9: The link between frequency of exposure to excessive pressure at work and perceptions of directors/senior managers<br />

as having a clear vision (%)<br />

Agree that directors/senior<br />

managers have a clear vision of<br />

where the organisation is going<br />

Neutral<br />

Disagree that directors/senior<br />

managers have a clear vision of<br />

where the organisation is going<br />

Every day 11 12 21<br />

Once or twice a week 27 30 33<br />

Once or twice a month 27 28 25<br />

Less frequently than once a month 27 23 17<br />

Never 8 8 4<br />

10 cipd.co.uk/employeeoutlook


<strong>Employee</strong> <strong>Outlook</strong><br />

<strong>Spring</strong> <strong>2013</strong><br />

Work–life balance<br />

The proportion of employees<br />

reporting the right balance between<br />

their home and work lives has risen<br />

only slightly to 57%, compared<br />

with 56% last quarter. This was<br />

more noticeable for men (a rise from<br />

50% to 53%), with 61% of women<br />

agreeing or strongly agreeing<br />

in both quarters. No change in<br />

work–life balance was reported<br />

by employees in the private sector<br />

(57% agreeing or strongly agreeing),<br />

while the proportion of public<br />

sector employees reporting the right<br />

work–life balance has fallen to 55%<br />

from 57% in the last quarter.<br />

Voluntary sector employees appear<br />

to have recovered the levels of their<br />

work–life balance satisfaction to<br />

64% after a drop to 55% in the<br />

last quarter; the levels of work–life<br />

balance satisfaction exceed autumn<br />

2012 levels of 61% which could<br />

potentially be linked to the higher<br />

demand for community services over<br />

the winter period.<br />

Unsurprisingly, there is a link<br />

between the levels of satisfaction<br />

with work–life balance and<br />

exposure to excessive pressure<br />

at work. Only 22% of those<br />

experiencing excessive pressure<br />

at work every day were able to<br />

manage the right balance between<br />

their work and home lives.<br />

Satisfaction with work–life balance<br />

increased as the levels of excessive<br />

pressure reduced.<br />

Table 10: Proportion of employees agreeing they achieve the right balance between their work and home lives… (%)<br />

All Men Women Private Public Voluntary<br />

Strongly agree 10 8 13 11 9 4<br />

Agree 47 45 48 46 46 57<br />

Neither agree nor disagree 15 17 14 15 15 17<br />

Disagree 19 22 17 20 19 13<br />

Strongly disagree 8 9 8 8 11 9<br />

Not sure 1 0 1 1 1 1<br />

Not applicable 0 0 0 0 0 0<br />

cipd.co.uk/employeeoutlook 11


<strong>Employee</strong> attitudes and the economic<br />

downturn<br />

V<br />

20%<br />

Perhaps unsurprisingly,<br />

older employees are<br />

more likely to think they<br />

would struggle to find<br />

another job if they lost<br />

their current one. Those<br />

aged 25–34 are the most<br />

optimistic, with 20%<br />

thinking it would be<br />

easy or very easy to find<br />

another job.<br />

Only 17% of employees think they<br />

are likely or very likely to lose<br />

their current job, compared with<br />

19% in the last quarter. Voluntary<br />

sector employees are still the most<br />

concerned; although the proportion<br />

of those saying it is likely they<br />

could lose their job has dropped<br />

from 26% to 19%. A similar drop<br />

has occurred in the public sector<br />

– from 24% to 18%, while the<br />

proportion of concerned employees<br />

in the private sector has dropped by<br />

only 1% to 16% this quarter.<br />

As in the last quarter, the same<br />

proportion of employees (11%)<br />

think it would be easy or very<br />

easy to find a job if they lost their<br />

current one and fewer think it<br />

would be difficult or very difficult<br />

(63% compared with 66% in<br />

winter). As before, private sector<br />

employees are most optimistic<br />

(12% this quarter and in the<br />

previous quarter), against 9%<br />

across both quarters in the public<br />

sector. In comparison, more<br />

voluntary sector workers now<br />

think they will struggle to find<br />

another job: only 6% currently<br />

think it would be easy or very easy,<br />

compared with 9% in the previous<br />

quarter.<br />

Perhaps unsurprisingly, older<br />

employees are more likely to think<br />

they would struggle to find another<br />

job if they lost their current one.<br />

Those aged 25–34 are the most<br />

optimistic, with 20% thinking it<br />

would be easy or very easy to find<br />

another job. This is compared with<br />

15% of those aged 18–24 and as<br />

few as 8% and 7% respectively in<br />

the age groups 45–54 and over 55<br />

years old.<br />

Slightly fewer respondents have<br />

reported that they feel that their<br />

organisation has not been affected<br />

by the economic downturn<br />

(14% compared with 15%<br />

in the last quarter). However,<br />

there is a slight increase in the<br />

number of employees reporting<br />

that the organisation has made<br />

redundancies (34% up from 33%),<br />

cut back on training (22% up from<br />

21%) or increased the number of<br />

hours people work (7% up from<br />

5%). On the other hand, 1%<br />

fewer respondents indicate the<br />

following forms of the organisation<br />

being affected by the economic<br />

downturn: employer planning to<br />

make redundancies; freezing pay;<br />

freezing recruitment; or reducing<br />

the amount of contribution to<br />

employee pensions.<br />

Similarly slight changes characterise<br />

employment in the private sector,<br />

where more organisations now<br />

appear to have made redundancies<br />

(28% compared with 27%) or<br />

increased the number of hours<br />

people work (6% compared<br />

with 5%). Fewer organisations<br />

in the private sector have frozen<br />

pay (32% compared with 34%).<br />

While no change in the number<br />

12 cipd.co.uk/employeeoutlook


<strong>Employee</strong> <strong>Outlook</strong><br />

<strong>Spring</strong> <strong>2013</strong><br />

of organisations cutting pay was<br />

observed overall (at 7%), there is<br />

a slight increase in the number of<br />

private sector employees reporting<br />

this trend (6% compared with 5%<br />

last quarter).<br />

More dramatic changes are<br />

observed in the public and<br />

voluntary sectors. On the one<br />

hand, in the public sector the<br />

proportion of employees reporting<br />

their organisation to have<br />

made redundancies or planning<br />

redundancies decreased by 1%<br />

and 5% respectively. On the other<br />

hand, employees in the voluntary<br />

sector are increasingly more likely<br />

to experience redundancies, with<br />

an 8% increase in the proportion<br />

of those reporting redundancies<br />

made and a 15% increase in the<br />

percentage of those expecting<br />

redundancies. This is after a<br />

seasonal drop in redundancies<br />

in the voluntary sector observed<br />

in the last quarter. In both the<br />

public and voluntary sectors,<br />

organisations were likely to cut<br />

back on the number of hours that<br />

people worked (13% down from<br />

21% in winter in the public sector,<br />

and 10% down from 13% in the<br />

voluntary sector).<br />

In addition, considerable changes<br />

were observed in the public and<br />

voluntary sectors with regard to<br />

recruitment and benefits. Of the<br />

three sectors, the organisations<br />

in the voluntary sector appear<br />

to have frozen recruitment<br />

(up 7% compared with winter<br />

2012–13), reduced the amount<br />

contributed to pensions (up 3%) or<br />

reduced the number of employee<br />

benefits/perks (up 2%). Fewer<br />

organisations in the private and<br />

public sector have implemented<br />

these measures in response to the<br />

economic downturn. Despite this,<br />

the voluntary sector is where the<br />

largest increase is in the number<br />

of employees who think that their<br />

organisation has not been affected<br />

by the economic downturn,<br />

reaching 10% currently compared<br />

with 8% in winter 2012–13.<br />

14%<br />

Slightly fewer respondents<br />

have reported that they<br />

feel that their organisation<br />

has been affected by the<br />

economic downturn (14%<br />

compared with 15% in<br />

the last quarter).<br />

V<br />

Table 11: In which ways, if at all, has your organisation been affected by the economic downturn (%)<br />

All Private Public Voluntary<br />

It has made redundancies. 34% (+1) 28% (+1) 51% (–1) 49% (+8)<br />

It is planning to make redundancies. 13% (–1) 8% (0) 28% (–5) 25% (+15)<br />

It has cut back on training. 22% (+1) 14% (0) 45% (+5) 28% (–2)<br />

It has cut back on the number of hours that people work. 18% (–2) 21% (+1) 13% (–8) 10% (–3)<br />

It has increased the number of hours that people work. 7% (+2) 6% (+1) 9% (+3) 12% (+1)<br />

It has frozen pay. 41% (–1) 32% (–2) 71% (0) 40% (+1)<br />

It has cut pay. 7% (0) 6% (+1) 11% (–1) 7% (+1)<br />

It has frozen recruitment. 28% (–1) 24% (0) 43% (–7) 20% (+7)<br />

It has reduced the amount contributed to employee pensions. 6% (–1) 5% (0) 9% (–3) 16% (+3)<br />

It has reduced employee benefits/perks. 17% (–2) 15% (–3) 23% (–2) 21% (+2)<br />

It has been affected in some other way. 19% (–1) 17% (–1) 24% (0) 28% (–3)<br />

It has not been affected by the economic downturn. 14% (–1) 18% (–1) 4% (+1) 10% (+2)<br />

Don’t know 7% (+1) 7% (0) 4% (–1) 3% (+1)<br />

Figures in brackets indicate the % change from the previous quarter (winter 2012/13)<br />

cipd.co.uk/employeeoutlook 13


Table 12: Proportion of employees saying it would be easy or difficult to find another job if they were to lose their current job… (%)<br />

All 18–24 25–34 35–44 45–54 55+<br />

Very easy 2 2 3 3 1 2<br />

Easy 9 13 17 12 7 5<br />

Neither easy nor difficult 21 30 28 24 24 12<br />

Difficult 32 33 34 39 32 28<br />

Very difficult 31 12 14 17 30 49<br />

Don’t know 5 10 3 6 5 3<br />

Table 13: Proportion of employees saying it is likely or unlikely that they could<br />

lose their jobs as a result of the economic downturn… (%)<br />

All Private Public Voluntary<br />

Very likely 4 4 4 3<br />

Likely 13 12 14 16<br />

Neither likely nor unlikely 28 28 27 36<br />

Unlikely 30 29 35 26<br />

Very unlikely 20 21 17 17<br />

Don’t know 5 5 3 2<br />

14 cipd.co.uk/employeeoutlook


<strong>Employee</strong> <strong>Outlook</strong><br />

<strong>Spring</strong> <strong>2013</strong><br />

Job-seeking<br />

A slightly greater proportion of<br />

respondents are looking for a<br />

new job with a different employer<br />

(21% compared with 20% in the<br />

last quarter); this share is on the<br />

increase both in the private and the<br />

public sector.<br />

The proportion of individuals<br />

seeking a new job is greater at<br />

senior manager level (at 29%<br />

compared with 26% in the previous<br />

quarter) once again this quarter.<br />

Those in financial intermediation<br />

(24%) and education (24%) have<br />

the highest number of employees<br />

currently looking for a job with a<br />

different organisation.<br />

There is a relationship between<br />

employees looking for a different<br />

job and their level of motivation<br />

by the organisation’s core<br />

purpose. Those motivated by<br />

the core purpose more strongly<br />

are significantly less likely to be<br />

looking for a new job compared<br />

with those who disagree that they<br />

are motivated by the core purpose.<br />

Similar links are observed between<br />

turnover intentions and satisfaction<br />

with job content, development<br />

opportunities on the job and the<br />

Engagement Index.<br />

Looking at organisational responses<br />

to the economic downturn, linear<br />

regression analysis (a method used<br />

to test relationships between two<br />

or more variables) confirms that<br />

employees increasingly look for a<br />

different job if their organisation<br />

increases the number of hours<br />

that people work or cuts pay. For<br />

example, 35% of employees in the<br />

organisations that have cut pay are<br />

looking for different jobs, compared<br />

with 22% of employees in the<br />

organisations that did not. Freezing<br />

pay does not have the same effect<br />

on turnover intentions.<br />

Table 14: Proportion looking for a new job, by sector (%)<br />

Crucially there is a<br />

relationship between<br />

employees looking for<br />

a different job and their<br />

level of motivation by the<br />

organisation’s core purpose.<br />

<strong>Spring</strong><br />

<strong>2013</strong><br />

Winter<br />

2012–13<br />

<strong>Spring</strong><br />

2012<br />

All 21 20 20<br />

Private sector 20 18 20<br />

Public sector 22 22 25<br />

Voluntary sector 35 33 38<br />

Table 15: Proportion looking for a new job, by engagement levels (%)<br />

Engaged Neutral Disengaged<br />

All looking for a new job 7 28 59<br />

Private sector 5 26 63<br />

Public sector 11 26 50<br />

Voluntary sector 8 67 0<br />

V<br />

Disengaged employees in the<br />

private sector are more likely to<br />

look for a different job, compared<br />

with the public sector. On the<br />

other hand, three-quarters of those<br />

neutral to their organisation in the<br />

voluntary sector are still looking<br />

for a different job.<br />

cipd.co.uk/employeeoutlook 15


Conclusions<br />

The spring <strong>2013</strong> <strong>Employee</strong> <strong>Outlook</strong><br />

findings show some signs of<br />

improvements this quarter. There<br />

has been a slight improvement in<br />

employee engagement (although a<br />

decrease in specific job satisfaction).<br />

Perceptions of leaders across<br />

all three sectors have generally<br />

improved – although trust and<br />

confidence in leaders have increased<br />

in the voluntary and public sectors<br />

but decreased in the private sector.<br />

While the pressure respondents<br />

experience on a day-to-day basis<br />

has increased slightly, people’s<br />

ability to balance their work<br />

and personal lives has also<br />

increased. There has also been an<br />

improvement in communication<br />

and information flows, with more<br />

employees across sectors reporting<br />

that they feel fully or fairly well<br />

informed about organisational<br />

issues and a marked increase in<br />

satisfaction with the ability to<br />

communicate views upwards.<br />

However, it is the voluntary sector<br />

that really stands out this quarter,<br />

with positive scores for engagement,<br />

perceptions of senior managers, open<br />

communications and understanding<br />

of, and motivation by, core purpose,<br />

despite experiencing ongoing<br />

redundancies, pay and benefit cuts.<br />

The voluntary sector has seen an<br />

impressive rise in Engagement Index<br />

scores, with 55% now engaged<br />

(compared with 41% last quarter).<br />

This increase is underpinned by<br />

improvements across multiple<br />

aspects of organisational life for<br />

these employees, including better<br />

levels of job satisfaction, employees’<br />

ability to achieve the right work–<br />

life balance and a healthy level of<br />

challenge in the job.<br />

The growth in Engagement Index<br />

scores, despite the observed increase<br />

in the number of redundancies<br />

in the voluntary sector, seems to<br />

be underpinned by the quality of<br />

It is highly likely that the economic<br />

downturn will continue to shape<br />

organisational change at least for another<br />

year; organisations therefore need to<br />

draw on leadership capacity to maintain<br />

employee engagement and job satisfaction<br />

in the context of low job security.<br />

management. More employees in<br />

the voluntary sector say that senior<br />

managers treat them with respect<br />

and consult them on important<br />

organisational decisions, which<br />

is matched by growing levels of<br />

trust and confidence in the top<br />

team. Smaller improvements in<br />

management quality in the public<br />

sector also suggest the possibility of<br />

improvement in employees’ overall<br />

engagement in the coming months.<br />

It is highly likely that the economic<br />

downturn will continue to shape<br />

organisational change at least for<br />

another year; organisations therefore<br />

need to draw on management and<br />

leadership capacity to maintain<br />

employee engagement and job<br />

satisfaction in the context of low<br />

job security. The data from the<br />

voluntary sector gives us some hints<br />

on how that could be achieved and<br />

provides some good practice that<br />

both the private and public sectors<br />

can learn from. For example, more<br />

employees in the voluntary sector<br />

agree that they know clearly what<br />

the purpose of the organisation<br />

is and are motivated by this core<br />

purpose. In addition, the effect of<br />

improved quality of both top–down<br />

and bottom–up communications<br />

is evident, with more workers in<br />

the sector feeling informed about<br />

what is happening within their<br />

organisation, but equally satisfied<br />

with opportunities to feed their<br />

opinions upwards.<br />

16 cipd.co.uk/employeeoutlook


<strong>Employee</strong> <strong>Outlook</strong><br />

<strong>Spring</strong> <strong>2013</strong><br />

Background to the survey<br />

The <strong>CIPD</strong> has commissioned<br />

a quarterly survey among UK<br />

employees (including sole traders)<br />

to identify their opinions of and<br />

attitudes towards working life today,<br />

particularly during these difficult<br />

economic times.<br />

YouGov conducted the latest<br />

quarterly online survey for the <strong>CIPD</strong><br />

of 2,083 UK employees in March<br />

<strong>2013</strong>.<br />

This survey was administered<br />

to members of the YouGov Plc<br />

UK panel of more than 350,000<br />

individuals who have agreed to<br />

take part in surveys. The sample<br />

was selected and weighted to be<br />

representative of the UK workforce<br />

in relation to sector and size<br />

(private, public, voluntary), industry<br />

type and full-time/part-time working<br />

by gender. Size of organisation was<br />

classified in the following way:<br />

sole trader (one-person business),<br />

micro business (2–9), small business<br />

(10–49), medium (50–249) and<br />

large (more than 250).<br />

Emails were sent to panellists<br />

selected at random from the base<br />

sample. The email invited them to<br />

take part in a survey and provided<br />

a generic survey link. Once a panel<br />

member clicked on the link they<br />

were sent to the survey that they are<br />

most required for, according to the<br />

sample definition and quotas. The<br />

sample profile is normally derived<br />

from census data or, if not available<br />

from the census, from industryaccepted<br />

data.<br />

Net scores refer to the proportion<br />

of people agreeing with a statement<br />

minus those disagreeing.<br />

cipd.co.uk/employeeoutlook 17


Chartered Institute of Personnel and Development<br />

151 The Broadway London SW19 1JQ UK<br />

Tel: +44 (0)20 8612 6200 Fax: +44 (0)20 8612 6201<br />

Email: cipd@cipd.co.uk Website: cipd.co.uk<br />

Incorporated by Royal Charter Registered charity no.1079797<br />

Issued: April <strong>2013</strong> Reference: 6205 © Chartered Institute of Personnel and Development <strong>2013</strong>

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