Amid uncertain economic times, U.S. employees expressed continued optimism about the direction of their companies and loyalty to their employers, according to the second annual employee engagement survey conducted by APCO Worldwide and Gagen MacDonald.
The survey results, however, indicate employees continue to believe their employers are not nearly as committed to them. There also is a widening gap between the perceived performance of CEOs and immediate supervisors, with employees expressing far more confidence in the performance of and communication from middle managers.
2. Overview
• Employee Confidence and Connection: Despite continued
economic uncertainty and high unemployment employees are
still optimistic about and feel connected to their company
• Employer Connection: There is a strong sense employers are not
reciprocating in terms of loyalty toward employees
• Connection Gap: This gap is driven by perceived poor
performance by the CEO and the executive team
3. Overview
• Mood: Employees believe things are getting better at their company;
morale has improved slightly
• Job Satisfaction: Employees are generally satisfied with their current
job and plan to remain with their company in the near term
• Job Performance: Employees have more confidence in their
supervisors’ ability to lead their company and perceive their
supervisors are doing a better job than their CEO; gap is widening
• Values: Company values play an important role in driving employee
confidence and connection
• Communication: Employees rate the quality and frequency of
communication from their supervisor much higher than from their CEO
6. Employee Confidence
Employee
Confidence
81.4
Significant elements Beta
The executive team in my company
supports and lives our values.
.390
My company’s executive team clearly
explains the direction the company is
heading.
.366
My company’s executive team shares
positive and negative news openly.
.323
My supervisor responds to my
feedback.
.107
Why do employees feel confident about
the direction of their company?
Employee Confidence = % right direction & % expect to be better
+ about the same r2 = .256
7. Employee Connection
Employee
Connection
83.5
The executive team in my company
supports and lives our values.
.218
In my company, I am comfortable
sharing information and ideas.
.172
My company’s executive team
exemplifies authentic, open and honest
communication.
.149
I have all the information that is
necessary for me to do my job.
.138
Why do employees feel connected to
their company?
Employee Connection = loyal to company & personally motivated to
help company succeed r2 = .315
Significant elements Beta
8. Employer Connection
Employer
Connection
63.3
What are employees seeking from their company?
The executive team in my company supports
and lives our values.
.282
My company’s executive team exemplifies
authentic, open and honest communication.
.189
In my company, I am comfortable sharing
information and ideas.
.156
My company’s executive team clearly
explains the reasons behind decisions.
.156
.094
My company’s values are clearly aligned with
our business strategy.
.094
I have all the information that is necessary for
me to do my job.
Employer Connection = company values its employees and is loyal
to employees r2 = .661
Significant elements Beta
9. The Connection Gap
Employee
Connection
20.2
r2 = .337
The executive team in my company
supports and lives our values.
-.287
My company’s executive team
exemplifies authentic, open and honest
communication.
-.208
I receive consistent information from all
the leaders in my company.
-.144
What explains the gap?
Employer
Connection
83.5
63.3
The Gap
Significant elements Beta
11. Direction of Company: Current
Right
direction
77%
Wrong track
18%
Mixed /
Not Sure
5%
2009: 81% right direction
More likely to say right direction
20+ years at company 29%
$150K+ income 85%
10-19 years at company 83%
Non-union 82%
Management employee 85%
More likely to say wrong track
Union member 30%
6-9 years at company 82%
<$50K income 26%
High school or less education 24%
55+ years old 23%
10,000+ employees 23%
12. Direction of Company: vs. One Year Ago
About the
same
44%
Better
33%
Worse
22%
2009: 27% better
More likely to say better
Management employee 45%
$150K+ income 44%
6-9 years at company 41%
African American 52%
Female 45+ years old 29%
More likely to say worse
Union member 30%
35-44 years old 40%
College graduate 38%
10-19 years at company 36%
Indicates significant difference from 2009
13. Direction of Company: One Year From Now
About the
same
46%
Better
40%
Worse
13%
2009: 44% better
More likely to say better
18-34 years old 53%
Female 18-44 years old 50%
1-5 years at company 48%
Management employee 54%
Northeast 58%
More likely to say about the same
Union member 60%
Non-union 44%
Female 45+ years of age 53%
Non-management employee 53%
14. Company Morale: Current
Neutral
18%
Positive
57%
Negative
23%
2009: 59% positive
More likely to say positive
100-249 employees 64%
18-34 years old 64%
African American 63%
500-999 employees 65%
Post graduate degree 28%
More likely to say negative
Union member 34%
Management 62%
Not sure
2%
West residents 62%
Non-union 61%
15. Company Morale: vs. One Year Ago
About the
same
47%
Better
24%
Worse
28%
2009: 20% better
More likely to say better
6-9 years at company 35%
Male 18-44 years old 34%
$150K+ income 34%
18-34 years old 40%
<$50K income 37%
More likely to say worse
Union member 37%
3-5 years at company 31%
Female 34%
High school or less education 36%
10,000+ employees 30%
Management employee 29%
17. Job Satisfaction: Current
Satisfied
79%
Unsatisfied
11%
Don’t know
or refused
10%
2009: 78% satisfied
Why are employees satisfied?
Significant elements Beta
The quality of the communication
you are receiving from your
immediate supervisor.
.342
The quality of the communication
you are receiving from your CEO.
.309
r2 = .302
19. Job Satisfaction: vs. One Year Ago
About the
same
60%
Higher
17%
Lower
23%
2009: 78% higher / same
More likely to say higher
250-499 employees 68%
$150K+ income 29%
Northeast 24%
10,000+ employees 21%
6-9 years at company 29%
More likely to say about the same
$75-100K income 68%
Northeast 32%
More likely to say lower
Post graduate 32%
20. Plan to Be at Job in 6 Months
Yes
87%
No
11%
Not sure
2%
2009: 88% yes
More likely to say yes
3-5 years at company 18%
35-44 years old 93%
6-9 years at company 92%
10-19 years at company 90%
500-999 employees 98%
More likely to say no
18-34 years old 20%
21. Commitment & Perceived Reciprocity
Statement
2010
% 8-10
2009
% 8-10
2010
Mean
2009
Mean
I am loyal to my company 77% 82% 8.5 8.8
I am personally motivated
to do all I can to help my
company succeed.
73% 80% 8.2 8.6
My company values its
employees
38% 48% 6.5 6.7
My company is loyal to me 37% 42% 6.2 6.4
Indicates
significant
difference
from 2009
• Decline in strong agreement on each the four elements from 2009 to 2010
• Major gap in employee commitment to their company vs. perceived commitment of the company
to them
• College graduates are more likely to give the company credit for being committed to them
• Biggest gaps exist among union and non union, management and non-management employees –
union and non-management more likely to believe the company is not committed to them
23. Ability to Lead
Your CEO’s ability to
effectively lead your
organization
Your immediate
supervisor’s ability to
effectively lead your
team
Very Confident Confident
More confidence in
supervisors on ability to lead
Key differences in CEO and
supervisor ratings between:
• Management and non-
management
• Union and non-union
• Education – high school or
less vs. more education
Non-management, union, and
high school educated or less
all rate both supervisors and
CEOs less positively on ability
to lead
20%
25%
52%
46%
72%
71%
2010
Mean
7.0
6.9
2009
Mean
7.1
7.1
24. CEO Performance Rating
Good
62%
Fair
15%
Poor
17%
2009: 66% good, 16% poor
Don’t know
or refused
6%
What impacts this rating?
Significant elements Beta
My company’s executive team
exemplifies authentic, open and
honest communications.
.266
My company’s executive team
clearly explains the reasons behind
decisions.
.235
My company’s executive team
clearly explains the direction the
company is heading.
.208
r2 = .442
25. CEO Performance Rating
Good
62%
Fair
15%
Poor
17%
2009: 66% good, 16% poor
Don’t know
or refused
6%
More likely to say good
Female 45+ years old 22%
45-54 years old 76%
Management employee 75%
$100-150K income 72%
$150K+ income 82%
More likely to say poor
55+ years old 22%
Some college or less education 23%
500-999 employees 71%
College graduate 70%
Union member 30%
26. Supervisor Performance Rating
Good
72%
Fair
11%
Poor
14%
2009: 73% good, 16% poor
Don’t know
or refused
3%
What drives this rating?
Significant elements Beta
My supervisor provides clear
direction and priorities for our
work group.
.516
My supervisor responds to my
feedback.
.295
r2 = .592
27. Supervisor Performance Rating
More likely to say good
High school or less education 18%
$150K income 81%
Management employee 80%
Post graduate degree 79%
6-9 years at company 86%
More likely to say poor
Union member 22%
45-54 years old 76%
Good
72%
Fair
11%
Poor
14%
2009: 73% good, 16% poor
Don’t know
or refused
3%
28. The Performance Gap
Supervisor
Good Job
10
CEO
Good Job
72%
62%
Supervisor-
CEO Job
Rating Gap
This is a significant gap
between CEO and supervisor
College graduates, $150K+
earners, and management
employees all rate CEO and
supervisor equally positively
Big rating gap among those
with some college education
or less as supervisors are
rated much more positively
30. Company Values
My company’s values
are clearly aligned
with our business
strategy
My company has a set
of clearly defined
values that drives all of
our behavior
The executive team in
my company
communicates
regularly about our
company values [n=495]
The executive team in
my company supports
and lives our values
[n=495]
Strongly Agree Agree
Note the significantly lower
agreement between 2009 and
2010 on the executive team
supporting and living corporate
values. Biggest gaps in agreement
occur between:
• Management and non-management
• Union and non-union
• College educated and high school or
less education
• $150K+ earners and those earning
less than $100K
There is also directionally less
agreement that the company’s
values are aligned with the
business strategy
19%
19%
21%
21%
58%
55%
45%
47%
77%
74%
66%
68%
2010
Mean
7.5
7.3
6.8
6.8
2009
Mean
7.5
7.7
7.4
6.9
Indicates significant
difference from 2009
32. Communication Rating
The communications
you receive from the
CEO about the state of
your company
The communications
you receive from your
immediate supervisor
about the state of your
company
Very Confident Confident
More confidence in
supervisors on the
communication they receive
vs. CEO
Key differences in CEO and
supervisor ratings between:
• Management and non-
management
• Union and non-union
• Education – high school or
less vs. more education
Non-management, union, and
high school educated or less
all rate both supervisors and
CEOs less positively on
communication
22%
25%
47%
40%
69%
65%
2010
Mean
6.8
6.4
2009
Mean
6.7
6.5
33. Frequency & Quality of Communication
The frequency of the
communication you
are receiving from
your CEO
The frequency of the
communication you
are receiving from
your immediate
supervisor
The quality of the
communication your
are receiving from
your CEO
The quality of the
communication you
are receiving from
your immediate
supervisor
Excellent Good
18%
25%
21%
24%
56%
37%
51%
42%
74%
62%
72%
66%
2010
Mean
7.3
6.2
7.1
6.7
2009
Mean
7.4
6.5
7.1
6.4
Note that both the frequency
and quality of communication
from supervisors are more
highly rated than are CEO
communication.
In particular, there is a large
gap between the supervisor
and CEO communication
frequency.
Also note that the gap
increased from 2009 to 2010
due to declines in CEO
communication ratings.
Union and non-management
employees rate CEO
communication significantly
lower than their supervisor’s
34. Communication Elements: Importance
Each communication element
is rated as highly important
Generally speaking, extremely
important ratings above 35%
indicate a very strong
resonance, a level met by each
element
Note, though, that supervisor
interactions are generally
viewed as more important
than executive management’s
interactions
Is this because they don’t see
senior management as
engaged so they have lower
importance on their
interactions?
Mean
8.3
8.3
8.2
8.2
7.9
7.8
7.7
7.7
7.5
7.3
A company's executive team exemplifies
authentic, open and honest communication
A company's executive team clearly
explains direction the company is heading
People are comfortable sharing information
and ideas in their company
People have all information necessary for
them to do their job
A company's executive team clearly
explains reasons behind decisions
People receive consistent information
from all leaders in their company
A supervisor responds to feedback
[N=495]
A company's executive team shares
positive and negative news openly
A supervisor takes time to listen to
opinions and ideas of others [N=495]
A supervisor provides clear direction and
priorities for their work group [N=495]
74% 12%
72% 14%
73% 11%
71% 16%
67% 17%
66% 16%
65% 14%
65% 16%
60% 17%
57% 21%
Extremely important Somewhat important
86%
86%
84%
87%
84%
82%
79%
81%
77%
78%
35. Communication Elements: Performance
Performance on these
elements is generally more
moderate.
The intensity is certainly
lower for many of the
elements.
Note that 2 of the 3 most
highly rated elements are
employee-driven feelings,
things they can directly
control.
Again, supervisors are rated
as doing a better job than
executive team members.
My company's executive team shares
positive and negative news openly
My supervisor responds to my
feedback [N=495]
My company's executive team clearly
explains direction the company is heading
I have all the information that is
necessary for me to do my job
My company's executive team clearly
explains the reasons behind decisions
I receive consistent information from
all the leaders in my company
My supervisor provides clear direction and
priorities for our work group [N=495]
My company's executive team exemplifies
authentic, open and honest communication
In my company, I am comfortable
sharing information and ideas
My supervisor takes the time to listen to
the opinions and ideas of others [N=495]
Mean
7.4
7.3
7.3
7.2
7.1
6.7
6.4
6.3
6.0
6.0
82%
73%
77%
76%
75%
71%
64%
65%
60%
59%
55% 27%
57% 16%
55% 22%
56% 20%
54% 21%
46% 25%
39% 25%
38% 27%
33% 27%
33% 26%
Describes perfectly Describes somewhat
36. Communication Importance & Performance
My company's executive team
shares positive and negative
news openly
My supervisor
responds to my
feedback
My company's executive team clearly
explains the direction the company is
heading
I have all the information that is
necessary for me to do my job
My company's executive
team clearly explains the
reasons behind decisions
I receive consistent
information from all the
leaders in my company
My company's executive team
exemplifies authentic, open and
honest communication
In my company, I am comfortable sharing
information and ideas
My supervisor takes the time to
listen to the opinions and ideas
of others
My supervisor provides
clear direction and
priorities for our work
group
Importance
Performance
Core strengths
Opportunity
38. Conclusion
• Hooray for middle managers!
• Employee confidence and connection remain high, but senior
leaders aren’t doing enough to sustain these levels
• It is critical for senior management to live company values and
communicate with their employees to reduce the connection gap
and build loyalty
• There is a real opportunity for visionary leaders to build meaningful
relationships with their employees by being transparent about
where they see the company headed, the decisions they make and
the implications
39. Implications for Senior Management
• Live the company values: supporting and living the company values is a key driver
in improving employee confidence and closing the employee/employer connection
gap
• Share the vision: employees who know where the company is going and how they
can help get the company there are by nature more engaged with their company
• Be an information ambassador: authentic, open and honest communication seems
to be missing for many employees
• Encourage feedback: it is important for senior leaders to solicit feedback as well as
communicate what is happening; employees indicate that being able to freely share
information and ideas is important in making them feel more connected to the
organization
• Take care of immediate supervisors: middle managers are perceived to be
performing at a higher level than senior managers and appear to be the glue
holding many organizations together
40. Research Methodology
APCO Worldwide and Gagen MacDonald jointly sponsored a telephone survey
among U.S. adults who have been employed full-time at least one year at a
company with at least 100 employees. The purpose of the study is to
determine the state of the U.S. workplace as viewed by America’s workforce.
Survey Population: U.S. full-time employees
Sample Design: Random digit dialing
Eligibility Criteria: Employed at least one year at a company
with at least 100 employees
Sample Size: n = 503
Margin of Error: ± 4.4% (at 95 percent confidence level)
Data Collection Methodology: Telephone
Field Dates: October 1-8, 2010