Benefits February 7, 2003

Employee Outlook Nosedives in January

February 7, 2003 (PLANSPONSOR.com) - The Employee Outlook Index declined six points to 60 in January, as employees expressed increasing concerns about the prospects for their company in 2003.
Reported by

The Employee Outlook Index, a joint venture of The Gallup Organization and UBS, is now close to its August low of 58 and far below its initial baseline of 72, with a ll three dimensions of the Index on the wane in January:

  • Future Company Conditions Index dropped nine points to 61
  • Present Company Conditions Index declined seven points to 77
  • Job Security Index slumped two points to 42

Performance Review

Employees were also polled in January about their company’s periodic formal performance reviews. Overwhelming, 80% of responded affirmatively that their company conducts performance evaluations; compared with the paltry 18% saying their company does not. Among those being periodically reviewed, 52% say they are reviewed annually, 27% report they receive a review every six months, and 13% answer their performance is reviewed monthly or more frequently.

Additionally, approximately two-thirds of employees, 63%, reported their employer set specific performance goals for them and/or their team in 2002. However, only 56% of those employees with specific set performance goals say they “completely met” their goals in 2002, with another 29% replying they “came close to meeting” their goals, while 14% uttered they “partially met” or were “unable to meet” their goals.

A slight majority of employees who had specific performance measures, 58%, said they received a bonus or some other  special incentive compensation to reward them for their performance. Aside from the commonplace monetary award, 39% of employees say that they received some other type of recognition for their work, such as a letter of praise, with 29% answered they received neither special compensation nor any other type of recognition and the remaining 26% responded they had received both a financial incentive and another type of recognition.

Among the remaining 37% without performance goals set by the company, the results were split. Only slightly more than half, 59%, set specific individual performance goals and 41% did not.

«