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Eight Reasons Employees Are Losing Confidence

By Dennis McCafferty on 2011-07-19


Recovery? What recovery? If your IT employees seem skittish lately, it's because overall worker confidence has fallen to levels not seen since the peak of the recession, according to a recent survey from Glassdoor, an executive job-search site. As a CIO, you need to be aware of these sentiments, as a decline in morale could impact job performance. The upshot: Continuing trouble signs -- especially in the jobs outlook -- are taking a toll on Americans. On the positive side, employees express more satisfaction about their jobs now than they did a year ago, and company practices with respect to layoffs, furloughs and other measures in reality (despite worker perceptions) are on the decline, according to survey results. The sense of pessimism apparently stems from expectations. "It's clear that the psyche of American workers has been measurably shaken as a result of recent discouraging economic reports,” says Rusty Rueff, Glassdoor career and workplace expert, as well as co-author of the book "Talent Force: A New Manifesto for the Human Side of Business" (FT Press/Available now). “While company layoffs have abated in recent months, employees may be preparing themselves for what they think will be another round of belt-tightening if the economy doesn't improve." More than 2,200 U.S. adults took part in the research.

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22% of respondents are concerned about getting laid off in the next six months, up from 16% a year ago.

40% of respondents feel their company’s business outlook will improve within the next six months, down from 45% a year ago.

36% of respondents expect a pay increase in the next year, down from 40% this time in 2010.

30% of respondents are more satisfied with their jobs than a year ago, up from 26% who felt the same way this time last year.

40% of respondents who work in companies that have made changes in compensation say layoff plans were the result, down from 47% a year ago.

29% of respondents who work in organizations that have made compensation changes say hiring-freeze plans were launched, down from 32% this time last year.

13% of respondents who work at organizations that have made compensation changes say their companies are reducing or taking away bonuses, down from 19% a year ago.

19% of respondents who work at organizations that have made compensation changes say their management initiated furloughs/unpaid leave/mandatory vacation plans, a figure that has held steady over the past 12 months.

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