Employee Engagement Hits New Lows as Workers Feel Stuck

Minneapolis, MN, October 11, 2011 — Modern Survey‘s recent study of employee engagement levels in the U.S. workforce has unveiled the somewhat disturbing reality that even while employee engagement is sinking to new lows only 21% of workers report that they are seeking new employment opportunities.

Conducted in September 2011, the most recent iteration of Modern Survey’s bi-annual study found that 70% of employees are now either disengaged or under engaged at their job — a record high number since Modern Survey began tracking these numbers in 2007 before the recession started. Additionally, the number of fully engaged employees has dropped to a record low of just 8%. Compared to one year ago when 15% of the workforce was fully engaged, the most recent data demonstrates a profound deterioration in the number of workers who are fully committed to their work and to their organization.

Shockingly, while 70% of workers are disengaged or under engaged, approximately one fifth of workers reported that they are currently looking for a new job at a different organization — a percentage which is remarkably consistent across nearly all captured demographics, including job level, pay basis (salaried vs. hourly) and company size.

The engagement components which have seen the furthest erosion in the past year include “discretionary effort,” down ten percentage points from 58% favorable in August 2010 to 48% favorable in September 2011, and “belief in the future of the organization,” which has tumbled most severely from 48% favorable in 2010 to just 34% in the most recent study.

Coinciding with the drop in employees’ belief in the future of their organization, the survey items, “I have confidence in the future of my company/organization” and “My company/organization is headed in the right direction,” proved to be the most highly associated with individual respondents’ engagement levels. This finding re-affirms similar results from February 2011 which demonstrated faith in the overall health and direction of the organization has leapt up to become the new top predictor of employee engagement, replacing predictors like recognition/appreciation, personal accomplishment and career development.

Presented with Modern Survey’s latest findings, Rob Grunewald, Associate Economist at the Federal Reserve Bank of Minneapolis, commented, “Employees discouraged with their current job may not be looking for a new job because there are no openings in their field, or they would have to take a wage decrease.”

Grunewald explained how current economic conditions may be affecting employee attitudes, stating, “When there is uncertainty about future economic conditions, consumers and businesses hunker down. Consumers tend to keep the job that they have and are cautious with their spending — they are even saving more now — while businesses are holding back on making investments.”

Modern Survey Senior Consultant, Bruce Campbell, advises leaders and organizations to fight employee malaise by taking concerted action to address concerns over the health and direction of their companies. Campbell notes, “One of the most effective ways organizations can inject their employees with confidence is by embracing transparency. Even if the news isn’t particularly good, employees tend to respond well if senior leaders are open and honest about the state of the business and clearly communicate, in the simplest possible terms, their plans and strategies for ensuring the organization’s future health and success.”

For additional details of the study please visit: http://www.modernsurvey.com/news/09_2011_study

About the Study
Modern Survey began conducting this study in August 2007 to a nationally representative sample of 1,000 U.S. working adults (18+ years old) who match census data in terms of age, gender and region. The most recent iteration, conducted in September 2011, polled 700 U.S. working adults matching the same census criteria. Multiple regression analysis was performed to determine which survey items best predict engagement mean scores – responses to these identified items are most significantly associated with overall engagement.

About Modern Survey
Modern Survey is a human capital measurement company. From licensed technologies to full-service enterprise solutions, Modern Survey helps organizations gather employee and customer feedback to create positive change and sound business decisions. With solutions covering employee engagement, performance management, 360-degree feedback, exit surveys, customer satisfaction and much much more, we offer our clients a smart blend of science, strategy and technology. Through direct and partner channels, our solutions have been used by more than 500 companies, over 85 of which are among the Fortune 500. www.modernsurvey.com


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