Employee Job Satisfaction and Engagement

1 A Research Report by the Society for Human Resource Management (SHRM). Employee Job Satisfaction and Engagement The Road to Economic Recovery Employee Job Satisfaction and Engagement The Road to Economic Recovery A Research Report by the Society for Human Resource Management (SHRM). Media Contact India Kate Kennedy 605, 6th Floor, Global Business Park, Tower B. Phone + Gurgaon, Sector 26, Haryana 122002. Vanessa Gray India Tel + Phone + United Arab Emirates USA Dubai Knowledge Village SHRM Block 9 Ground floor About SHRM 1800 Duke Street Executive Office 21. The Society for Human Resource Alexandria, VA 22314 PO Box 502221. Management (SHRM) is the world's largest Phone + Dubai, UAE.

2 Association devoted to human resource Fax + Tel + management. Representing more than Email Fax + 250,000 members in over 140 countries, China Online the Society serves the needs of HR SHRM China SHRM Online professionals and advances the interests of 11th Floor, Building A SHRM Research the HR profession. Founded in 1948, SHRM Gateway Plaza SHRM Survey Findings has more than 575 affiliated chapters Xiaguangli, North SHRM Research on Twitter @SHRM_Research within the United States and subsidiary Road East Third Ring SHRM Research on LinkedIn offices in China, India and United Arab Chaoyang District SHRM Research on SHRM Connect Emirates. Visit SHRM Online at Beijing, 100027 China Tel + Fax + Email To order printed copies of this report, visit or call 1-800-444-5006.

3 Contents Contents About This Research Report 1. Executive Summary 3. Employee Job Satisfaction 9. Career Development 9. Opportunities to Use Skills/Abilities 9. Career Advancement Opportunities Within Organization 10. Job-Specific Training 10. Organization's Commitment to Professional Development 10. Career Development Opportunities 10. Paid Training and Tuition Reimbursement Programs 11. Networking 11. Employee Relationships with Management 12. Relationship with Immediate Supervisor 12. Communication Between Employees and Senior Management 12. Autonomy and Independence 13. Management's Recognition of Employee Job Performance 13. Compensation and Benefits 14. Compensation/Pay 14.

4 Benefits 15. Work Environment 20. Job Security 20. Organization's Financial Stability 21. The Work Itself 21. Feeling Safe in the Work Environment 21. Overall Corporate Culture 21. Relationship with Co-Workers 21. Meaningfulness of the Job 21. Contribution of Work to Organization's Business Goals 21. Variety of Work 22. Organization's Commitment to Corporate Social Responsibility 22. Organization's Commitment to a Diverse and Inclusive Workforce 22. Organization's Commitment to a Green Workplace 22. Employee Engagement 27. Conditions for Engagement 27. Engagement Opinions 27. Engagement Behaviors 28. Conclusions 33. Methodology 34. Appendix: Tables 7 - 23 39. Endnotes 54.

5 Additional SHRM Resources 55. A b o u t Th i s R e s e a r c h R e p o r t A b o u t Th i s R e s e a r c h R e p o r t About This Research Report The following report represents the findings from Every two years, SHRM also surveys human resource (HR). the SHRM Employee Job Satisfaction and Engagement professionals to examine their overall job Satisfaction and Survey of 600 employees. The overall Employee Engagement levels. The results of that survey are included survey was conducted in July and August of 2013. The in this report. HR professionals were surveyed during Sep- purpose of the annual Employee survey is to identify tember and October of 2013; 347 responses were obtained.

6 Factors that influence overall Employee Satisfaction and Engagement in the workplace. This information will The survey assesses 35 aspects of Employee job satisfac- provide insight on Employee preferences and highlight tion and 34 aspects of Employee Engagement . These key areas for organizations to consider as they develop aspects are categorized into the following eight areas: and enhance initiatives for organizational improvement. 1 Career development. 5 Work environment. 2 Relationship with management. 6 Conditions for Engagement . 3 Compensation. 7 Engagement opinions. 4 Benefits. 8 Engagement behaviors. The overall findings are explained in text and through A ranking of the top five Employee Engagement aspects supporting visual references.

7 The research objective by demographic variables, including Employee gender, of this report is to provide the following analyses: age and job level. An analysis of the importance of Employee job Additional analyses by demographic variables, which Satisfaction contributors, including statistically include Employee gender, age and job level. significant differences. A comparison of HR professionals' important job An analysis of Employee Satisfaction with job Satisfaction contributors to those of the overall Satisfaction contributors. Employee population. A ranking of the top five Employee job Satisfaction A comparison of HR professionals' Engagement to the contributors by demographic variables, which include Engagement level of the overall Employee population.

8 Employee gender, age and job level. An analysis of Employee Engagement through an Engagement index computation. Employee Job Satisfaction and Engagement | 1. E x e c u t i v e S u m m a ry In 2013, 81% of employees reported overall Satisfaction with their current job, unchanged from 2012. E x e c u t i v e S u m m a ry Executive Summary 2013 marks the first time in eight years that Employee job overall Employee job Satisfaction . This factor was ranked Satisfaction has not changed from the previous year. This as low as fifth in importance only a few years ago, in 2010. finding may come as no surprise, considering that eco- However, many employers have frozen salaries or admin- nomic conditions and job creation rates have experienced istered minimal increases to compensation during the little fluctuation during the past few years.

9 However, post-recession economy in an effort to control costs, and workers are placing different levels of importance on the this slow-growth environment for incomes is undoubt- factors that contribute to job Satisfaction and Engagement , edly having an impact on workers' priorities and could and this can be expected to change further if, as predict- affect their plans for seeking new employment in 2014. ed, the economy and the labor market improve in 2014. Both job security and opportunities to use skills/abilities rated In 2013, 81% of employees reported overall satisfac- second (59% each) among the factors reported as very tion with their current job, unchanged from 2012.

10 Of important to job Satisfaction . These job Satisfaction that group, 36% said they were very satisfied, and 45% contributors were followed by the relationship with im- mediate supervisor (54%), the overall benefits package (53%), were somewhat satisfied. That level of Satisfaction is organization's financial stability (53%) and the work itself (51%). slightly higher than a low of 77% in 2002, but below the peak of 86% in 2009, when the economy transitioned Compensation/pay was either the top or second-rated out of the Great Recession and began its current period aspect of job Satisfaction of four different generations of expansion. After increasing from 2007 to 2009, job of employees (Millennials, Generation X, Baby Boomers Satisfaction gradually fell between 2009 and 2012.)