2006 Survey Reveals Generational Differences, Employment Issues and Productivity Perception

The signs of a stressed workforce are showing in the U.S., according to Randstad's 2006 Employee Review, conducted by Harris Interactive(R). Pressures at work are escalating, thereby decreasing employees' job satisfaction while increasing their expectations of employer leadership. Employees want opportunities for career development, an improved work/life balance and to feel valued - and they expect employers to facilitate improvements. Yet despite concerns about job strains and the desire for a healthier work/life balance, a majority of employees of all ages said they would endure more stress for more income.

In its 2006 Employee Review, global staffing firm Randstad explores workplace attitudes and experiences of employers and employees surrounding top business issues in today's multi-generational and demanding workplace. Results from the 2006 survey focus on company productivity, employee development, morale issues, health, and happiness.

The Employee Review uncovers disparities in employees' and employers' view of major work issues, including possible indicators of what's eroding job satisfaction and increasing stress levels. When it comes to career development, 73 percent of employers said fostering employee development is important, but only 49 percent of employees said leadership is adhering to this practice. Likewise, 86 percent of employees cited feeling valued as an important factor for happiness while only 37 percent said it exists in their job.

Employees' and employers' inconsistent views on key issues negatively impact loyalty and morale, igniting stress and influencing attitudes about changing jobs. The majority of employees (81 percent) and employers (69 percent) said it is a reality that people stay in jobs they dislike just to have a job. Since 2005 the number of employees who said their company is loyal to them and the number of both employers and employees who said they are loyal to their company has decreased. However, about two-thirds of respondents said they do not plan on changing jobs in 2006 even though options for career changes exist.

Workplace Views: Employee vs. Employer       Employees  Employers
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Company loyalty to employee
% who say their company is loyal                25         41
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Employer/employee loyalty to company
% who say they are loyal                        56         72
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Company morale
% who say excellent/good                        38         55
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People stay in jobs they dislike
% say it's a reality                            81         69
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% Not changing jobs in 2006                     65         68
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"The survey shows a widening gap in employee expectations and respective employer delivery. Companies that encourage dialogue to narrow the disparity will broaden work appreciation and job satisfaction," said Genia Spencer, managing director of operations and human resources for Randstad USA. "Employees' views of work and growth opportunities vary by generation; therefore improving job satisfaction and productivity require tailored approaches."

Results from the Employee Review reveal key generational differences in employees' views of career development, happiness and how workers manage stress. In addition, the survey recognizes significant employment issues, including the correlation between career development, productivity and retention practices.

It's a New Generation

Career development: Gen Y are the least likely to be interested in pay increases and most likely to be interested in learning new skills (31 percent), and they are more likely to value a career path (19 percent) than any other generation. Interestingly, only three percent consider increased responsibilities important to their career.

Happiness: Gen Y and Gen X want pathways to personal growth, 58 percent and 52 percent respectively, compared to 41 percent of Boomers and only 29 percent of Matures. On the other hand, 84 percent of Matures are looking for recognition and appreciation compared to 74 percent of Gen Y.

Absenteeism: Gen Y and Gen X take the most number of sick days, and Matures take the least. One in five (21 percent) employees reports taking a sick day to relieve stress. Compared to Matures, Gen Y is almost twice as likely (40 percent vs. 26 percent) to take a sick day to relieve stress, almost three times more likely (33 percent vs. 12 percent) to attribute working too many hours to absenteeism, and almost four times as likely (23 percent vs. 6 percent) to use a sick day for personal errands.

Employment Issues

Hiring & Retention: Small companies (41 percent) are more likely to be concerned with hiring the right person with the right skills; while large companies (31 percent) regard retaining and motivating employees as the most important business issue.

Employment Trends: Two of the top employment issues from 2005, hiring the right people with the right skills and employee retention & motivation, again were named the top issues by employers in 2006. More important, the percentage of respondents choosing these two issues as the top challenges rose.

                             2005                 2006
Top Employment Issues    ----------------------------------------
  (% by company size)    Small  Medium  Large  Small  Medium  Large
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Hiring the right people
with the right skills      33     25     22     41     33     28
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Employee retention &
motivation                 15     18     24     20     27     31
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Skills & Productivity

Efficiency & Development: While the majority of employees and employers agree that the top source of productivity gains is increased employee efficiency, only 49 percent of employees say leadership practices fostering employee development. This contrasts with 73 percent of employers who report that fostering employee development is important.

Productivity Perceptions: Employees and employers agree that the top source of productivity gains is increased employee efficiency. Technology is the second rated source of productivity gains, followed by more skilled people.

 Perceptions about Major Sources of Productivity
                (% Who say...)               Employees Employers
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Increased employee efficiency/output            22         28
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Technology                                      14         15
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More skilled people                             11         12
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Randstad's 2006 Employee Review, a 40-page summary of the survey's results, includes data around the respondents' views of ongoing or trending issues such as morale, loyalty, the economy, and satisfaction with workplace issues, as well as productivity, career development, health, and happiness. For more information, or to obtain a copy of the Randstad 2006 Employee Review, contact:

Becca Brett Leish
Manning Selvage & Lee
404.870.6838
becca.brettleish@mslpr.com 

Survey Methodology

Harris Interactive(R) fielded the online study on behalf of Randstad USA between February 28 and March 13, 2006, among a nationwide sample of 2,906 U.S. adults age 18 and older, among whom 1,264 were employers and 1,642 were employees. The sample for employees consisted of U.S. residents who are currently employed full-time or self-employed at an organization with at least five employees. The employer sample consisted of U.S. business professionals who make strategic Human Resources decisions and strongly influence those decisions and have been doing so for at least six months. The employee universe is segmented into four generational categories born between the respective years: Gen Y (1980-1987), Gen X (1965-1979), Baby Boomers (1946-1964) and Matures (1900-1945). The data from this survey were weighted to "match the characteristics of" and to remove potential biases so that the data are "projectable" to the "population of interest." Propensity score weighting was also used to adjust for employee respondents' propensity to be online.

With a pure probability sample of this size one could say with a 95 percent probability that the sampling error for employers is +/- 2.3 percentage points and for employees is +/- 2.0 percentage points. Sampling error for sub-samples is higher and varies. However that does not take other sources of error into account. This online survey is not based on a probability sample and therefore no theoretical sampling error can be calculated.

Article At: Business Wire

- ACA Talent