HR Bulletin September 10, 2010
- Government Employment Continues to Fall
- Majority of Companies Worldwide Having Difficulty Attracting Critical-Skill and Talented Employees, Towers Watson Survey Finds
- Nearly Two-Thirds of Working Americans Seriously Doubt They’ll Be Able to Ever Retire
- More Employees Consider Changing Jobs As Economic Optimism Grows
- Strong Relationship Found Between Employee Engagement and Performance Evaluations
- Voting Open for IPMA-HR Election
- One More Week to Apply for Position on IPMA-HR Federal Advisory Committee
- On the Calendar
The September 2010 issue of HR News magazine (5.85 MB) is now online.
The Fall 2010 issue of Public Personnel Management (3.38 MB) is available online.
Press releases on the IPMA-HR Web site may be accessed here.
To access archived issues of the HR Bulletin, click here; you must be a member of IPMA-HR in order to access these archived issues.
Government Employment Continues to Fall
The Bureau of Labor Statistics (BLS) reported that in August, government employment fell by 121,000 jobs. The number of temporary 2010 Census workers declined by 114,000. State government employment was reduced by 14,000 jobs. There was an increase of 4,000 jobs in local government. During the past 12 months, state and local government employment has declined by 182,000 jobs.
Overall, the economy lost 54,000 jobs in August and the unemployment rate remained rose slightly to 9.6 percent. There was an increase of 67,000 private sector jobs in August. BLS revised its June report to decrease the total loss of jobs from 221,000 to 175,000 and the July report was changed to reduce the loss of jobs from 131,000 to 54,000.
The percentage of labor underutilization in July rose by 0.2 percent to 16.7 percent. The underutilization rate consists of the percentage of unemployed, marginally attached to the labor force (those who are discouraged and not looking for work due to the job market plus those who indicate that they want and are available for a job), and those working part-time who want to work full-time. Additional information is available here.
Majority of Companies Worldwide Having Difficulty Attracting Critical-Skill and Talented Employees, Towers Watson Survey Finds
NEW YORK – A vast majority of companies worldwide are having difficulty attracting the critical-skill and talented employees needed to help them rebound and prosper in the wake of the economic crisis. However, the severity of their difficulty in attracting these workers varies greatly from country to country as economic recovery is proving to be uneven in different regions, according to a new survey conducted by global professional services company Towers Watson and WorldatWork, an international association of human resource professionals.
The Towers Watson Global Talent Management and Rewards Survey, a study of 1,176 companies globally, including 314 from the United States, also found that a majority of respondents said the cost-cutting measures that they took during the recession and financial crisis had an adverse impact on employees’ workloads, their ability to manage work-related stress and overall employee engagement. As a result, companies are beginning to reevaluate their reward and talent management programs, and how they attract, retain and motivate employees.
According to the survey, nearly two-thirds (65 percent) of companies globally and more than one-half (52 percent) of U.S. companies reported problems attracting critical-skill employees. Six in 10 (61 percent) companies globally, and 45 percent of U.S. companies, reported similar difficulty attracting top-performing, talented employees. Interestingly, companies in most regions reported having less difficulty retaining employees than they do attracting them. Globally, only 21 percent of companies are having difficulty keeping employees generally, while just 11 percent of U.S. firms reported problems holding onto employees.
“The business climate has clearly affected both the supply and demand of talent, and companies’ ability to attract and hire talented employees,” said Laura Sejen, global head of rewards consulting at Towers Watson. “Even in relatively soft economies, top employees are in short supply. Add to that, workers today simply are in no rush to seek employment elsewhere, given the uncertainty over economic recovery. As a result, many companies find themselves in a position of having to find new and innovative ways to entice and ultimately develop talent and leadership for the future.”
Impact of Cost Cutting on Employees
The economic crisis forced many companies globally to take cost management or cost-cutting activities, such as hiring and salary freezes, layoffs and bonus reductions, although there were significant regional differences in the nature and extent of those actions. The survey noted that U.S. companies took the most aggressive measures, with more than 60 percent implementing at least four cost-cutting actions. These cost-cutting steps took their toll on workers. Six in 10 (61 percent) believe their cost-cutting actions increased employees’ workloads, while 53 percent said they adversely impacted employees’ ability to manage their work-related stress. One-half (50%) also said these measures had a negative impact on employee engagement and workers’ ability to balance their work and personal lives.
“This study is a good reminder that employers need to reassess their employee value proposition to key in on those factors, both tangible and intangible, that would make them attractive to recruits,” said Ryan Johnson, CCP, vice president of Publishing and Community for WorldatWork. “This is even more critical when luring top talent for leadership roles.”
An Increased Focus on Talent Management
The survey noted that organizations are likely to increase their talent management emphasis in leadership, succession planning and career pathing over the next three years. When asked what their top talent management priorities were, 62 percent of companies globally responded ensuring the readiness of talent in critical roles, followed by 60 percent who said increasing the investment in building an internal pipeline of talent was a top priority. Just over one-half (51 percent) ranked creating more movement, rotation and development opportunities for talent as a top priority.
“Leadership development is getting a lot of attention in the United States, and rightfully so,” said Laurie Bienstock, North America rewards practice leader at Towers Watson. “For companies that reduced the number of management layers, advancement opportunities have become fewer, and the gaps and complexity between levels have increased, making it significantly more difficult for companies to ensure leaders are prepared to effectively take on new and larger roles.”
For additional information, please click here.
About the Survey
The Towers Watson Global Talent Management and Rewards Survey was conducted in May and June of 2010, and includes responses from 1,176 companies from 23 countries, including 314 companies from the United States. The participants represent a wide range of industries and come from a broad cross section geographically.
Towers Watson is a global professional services company that helps organizations improve performance through effective people, risk and financial management. The company offers solutions in the areas of employee benefits, talent management, rewards, and risk and capital management. Towers Watson has 14,000 associates around the world and is located on the Web at towerswatson.com.
WorldatWork is a global human resources association focused on compensation, benefits, work-life and integrated total rewards to attract, motivate and retain a talented workforce. Founded in 1955, WorldatWork provides a network of more than 30,000 members in 100 countries with training, certification, research, conferences and community. It has offices in Scottsdale, Ariz., and Washington, D.C.
Nearly Two-Thirds of Working Americans Seriously Doubt They’ll Be Able to Ever Retire
NEW YORK – Most American workers are satisfied with their jobs, but nearly two in three have strong doubts about being able to eventually stop working and retire, according to a recent StrategyOne public opinion survey of 1,043 Americans, including 613 who work either full- or part-time.
The vast majority of 613 employed Americans who were surveyed describe themselves as satisfied with their jobs (82 percent) and report they get satisfaction from their work (80 percent). About three out of four (72 percent) also said they enjoy where they work and look forward to coming to work every day.
Equally high percentages of workers said they feel respected by their bosses (83 percent) and feel their boss respects their work (82 percent). Coworkers also got high marks, with three out of four Americans (74 percent) saying their colleagues are among the best things about where they work.
But this rosy picture of the workplace belies underlying concerns, many related to the unsettled economy.
Nearly two in three (64 percent) believe that realistically they won’t ever be able to stop working and retire, and the uncertainty of the long-term picture may help explain the divide among American workers over whether they believe they labor at a job (52 percent) or in a long-term career (48 percent).
The current economic downturn has produced a situation where almost half (46 percent) of workers have had their wages or salaries reduced over the past couple of years, and a similar segment are concerned about losing their jobs (44 percent) or having their hours cut back (48 percent).
About four in 10 workers (37 percent) describe themselves as underemployed and say they are not working as many hours as they would like because there is not enough work available at their current jobs. Meanwhile, a similar percentage of workers (40 percent) say that their bosses expect them to work extra hours without raises or additional compensation.
“While employed Americans on the whole enjoy their work and get satisfaction from it, there is a real sense that the retirement ‘light at the end of the tunnel’ may not be there for them,” said Bradley Honan, senior vice president of StrategyOne.
The StrategyOne survey also found that a surprising number of workers are disconnected from the mission of their company. One-third of American workers (35 percent) report not caring much about their company and say they are mainly there to get a paycheck, and 38 percent report not knowing what the main mission of their organization is, other than making money. More than half (56 percent) say they would be interested in leaving their job if they could get the same compensation elsewhere.
“With extensive market competition in every industry, it’s absolutely imperative that companies engage their entire workforce in their mission to achieve their business goals and objectives,” said Honan. “Employees must see their jobs as more than just collecting a paycheck, and it’s up to their employers to make sure that’s the case.”
The StrategyOne Labor Day American Worker survey also provides several other insights into Americans and their work:
Work Versus Life
The vast majority of the workforce (78 percent) describes themselves as working to live—compared to 22 percent who say work is their top priority in life—the so called ‘workaholics’ in our society.
Taking a Day Off
One-quarter of workers (26 percent) say they fear being fired if they take a day off, although nearly half strongly disagree with that suggestion.
Web Surfing at Work
While they may not be taking days off, many American workers admit to surfing the Web while at work: 40 percent for at least one hour a day and 28 percent for at least two hours a day. Social media is a big draw, with 29 percent saying they spend at least one hour of their day using such sites and checking on what other people are doing.
Communications with their Boss
Almost 82 percent of workers say they communicate well with their bosses, but companies have some work to do. Almost half (44 percent) say their companies put corporate “values” on the wall that are mostly meaningless to them.
Company Meetings
Close to half (49 percent) agree with the following statement: “Most meetings that I go to at the company where I work are a waste of time.”
Survey Methodology
StrategyOne conducted 1,043 online interviews among a representative sampling of Americans between August 20 and 23, 2010. Six-hundred and thirteen of those interviews were conducted among full-or part-time employees. The margin of sampling error at the 95 percent level of confidence for the worker population is = +/- 3.96 percent overall and larger for subgroups. Statistical weights were designed from the United States Census Bureau statistics.
StrategyOne, a Daniel J. Edelman company, employs custom public opinion research and secondary research methodologies to deliver strategic counsel to corporate, organizational and governmental clients globally. With offices in Atlanta, Chicago, London, New York, Paris, San Mateo, Washington, D.C. and Abu Dhabi, they provide global clients with evidence based stakeholder insights, analysis and measurement.
More Employees Consider Changing Jobs As Economic Optimism Grows
NEW YORK – GfK Custom Research North America, a global custom research company, recently revealed the findings of its national survey indicating that more than one in five currently employed Americans are willing to change jobs if given the opportunity, which could negatively impact employee retention. However, 53 percent would prefer to stay with their current company even if they were offered a good job elsewhere.
During recessions, employees are far less likely to change jobs, while employers tend to lessen their investments in employee training and development in an effort to keep overhead lower.
The GfK Employee Engagement Pulse Survey of 533 employed adults was weighted to ensure accurate and reliable representation of the total online population, 18 years and older, and screened for employment status.
“This number is important to watch as the economy continues to improve,” said Thomas Hartley, vice president of GfK Customer Loyalty and Employee Engagement. “Employees are more likely to stay with their company during lean times, and so companies have taken them for granted. When the economy strengthens, experience tells us that employees will begin weighing their options and considering other jobs. Since it takes up to 12 months to improve employee engagement, companies need to plan ahead and take the proper steps to ensure their employee retention rates remain high.”
Two other findings suggest an increased optimism among working Americans: 47 percent of employed adults are confident that the economy will recover in the next year, and 80 percent of fully employed adults are confident that they will be able to stay in their job for at least the next year.
GfK Employee Engagement, a service of GfK Customer Loyalty, helps clients understand how employee engagement contributes to revenue and profit growth, with validated engagement metrics, focused action that increases retention and discretionary effort, and specifically tailored components that build customer loyalty. GfK Customer Loyalty, a division of GfK Custom Research North America, provides proven, results-oriented methods for measuring employee engagement as well as managing customer satisfaction and loyalty.
Headquartered in New York, GfK Custom Research North America is part of the GfK Group. The GfK Group offers the fundamental knowledge that industry, retailers, services companies and the media need to make market decisions. It delivers a comprehensive range of information and consultancy services in three business sectors—Custom Research, Retail and Technology and Media. The world’s fourth largest market research organization operates in more than 100 countries and employs over 10,000 staff.
Strong Relationship Found Between Employee Engagement and Performance Evaluations
CHICAGO, Ill. – A recent study conducted by HR Solutions has shown a positive correlation between employee engagement and performance evaluations. According to HR Solutions’ national database, there is a strong relationship between one’s level of engagement and one’s performance evaluation rating. The data reveals a significant disparity based on engagement levels. Thus, employees who receive the best performance rating are the most engaged in their workplace based on the results of their Employee Engagement/Opinion Survey.
To reach these findings, HR Solutions correlated 117,868 of its clients’ annual performance evaluation scores with corresponding employee engagement survey scores. Nearly 80 percent of engaged employees received the best performance rating on their annual evaluations compared to approximately 55 percent of disengaged employees who obtained the worst performance rating. This direct relationship between employee engagement and performance evaluations very likely portends great things for employees who are truly engaged, such as greater prospects for promotions, recognition, salary increases, and benefit perks.
HR Solutions, Inc., is an international human capital management consulting firm located in Chicago, Ill., specializing in employee engagement and exit survey design, implementation, and results.
Voting Open for IPMA-HR Election
The IPMA-HR Nominating Committee has selected the slate of candidates for this year’s election to fill the position of president-elect.
For president-elect, the nominees are Kimla Milburn, IPMA-CP, human resources director, city of Annapolis, Md.; and Mark van Bruggen, IPMA-CP, HR consultant team leader, New Jersey Civil Service Commission. Click here to read a statement and biographical sketch for each candidate.
Vote now! (You’ll need to enter your membership identification number on the Web site in order to vote.)
Voting closes on Monday, September 20, and the ballots will be counted on Tuesday, September 21.
If you have any questions about this year’s election, please contact Neil Reichenberg at nreichenberg@ipma-hr.org, or call (703) 549-7100. Forgot your member ID? Please call (703) 549-7100 for immediate assistance, or contact IPMA-HR via e-mail at membership@ipma-hr.org.
One More Week to Apply for Position on IPMA-HR Federal Advisory Committee
The IPMA-HR Federal Advisory Committee (FAC) has been in business for about one-and-a-half years and has reached several milestones in its short tenure. Chief among those milestones is the extensive outreach and opportunities for dialogue we have identified for professionals within the federal HR community. The 2009 IPMA-HR International Training Conference afforded the opportunity for a sponsored breakfast for federal participants as well as engagement with the state and local HR communities. In 2010, FAC members have been very active in building on that success with two FAC members serving on the conference committee and the FAC’s commitment to host not only two workshops, but also a federal HR forum at the 2010 IPMA-HR International Training Conference in Seattle. Another highlight was the very successful HR Directors Forum held in April 2010, where a group of HR directors from a cross-section of federal agencies came together to share best practices, discuss challenges and successes and build a network of peers. You can learn more about the mission, current committee members and activities of the FAC by clicking here.
The IPMA-HR FAC has experienced some turnover of FAC members and is looking to fill out its complement of committee members. In order to continue its momentum, the FAC needs to attract an active, committed, passionate and diverse group of federal human resources professionals to serve as Federal Advisory Committee members for a two-year term. The FAC is looking for highly motivated individuals who can represent the interests and insights of the federal HR community from across the county, and as wide a range of federal agencies as possible. To serve on the ccmmittee, you must currently be a federal employee in the human resources/human capital profession and an IPMA-HR member in good standing.
Don’t stand on the sidelines! Get involved in addressing the needs of your community by submitting your credentials for appointment to a Federal Advisory Committee member position. Please submit your bio and a short statement that addresses your interest in serving to IPMA-HR Director of Membership and Communications Jessica Allen, by e-mail at jallen@ipma-hr.org, no later than Friday, September 17, 2010. If you would like to learn more about the committee and its current members, please let Jessica know and she'll make sure one of the committee members reaches out to you. We guarantee that you will find being a member of the FAC an enjoyable and career enhancing experience.
On the Calendar
September 19-22, 2010
Eastern Region Conference
Adlephi, Md.
September 22
Online Course
Developing Competencies for HR Success
October 2-6, 2010
2010 International Training Conference & Expo
Sheraton Seattle Hotel & Towers
Seattle, Wash.
Contact IPMA-HR Director of Membership and Professional Development Jessica Allen at jallen@ipma-hr.org or click here for more information.
October 6
Online Course
Managing Employee Performance as an HR Business Partner
Watch the HR Bulletin and our Web site for more information on educational opportunities.
