Employees Think the Worst is Over?

October 1, 2009 (PLANSPONSOR.com) - It appears as if employees may think the worst is over as several key measures of employee confidence appear to be rising, according to the Q3 Glassdoor.com Employment Confidence Survey of 1,195 employees conducted on its behalf by Harris Interactive.

In the third quarter, employees reported fewer layoffs and actions that reduced employee compensation at their companies than in the prior two quarters, according to a press release.

In addition, the survey found:

  • 57% expect a raise, bonus, and/or promotion;
  • 35% expect hiring freezes to be lifted and/or more employees to be hired in their department;
  • 24% expect health benefits and perks that were previously reduced to be restored; and
  • 19% expect to look for a new job.

Slightly more than half (51%) of employees report their company made changes to the number of staff, organizational structure, compensation and benefits, or other perks over the past six months, which was down 3 points from the second quarter. Of those reporting these changes, 54% said their company laid off or communicated plans to lay off employees, while 55% said their company changed or reduced compensation.

Nearly one in three (30%) said their individual pay and/or bonus was reduced or eliminated in the past six months. More employees this quarter said their companies initiated furloughs, unpaid leave or mandatory vacations (23%) than in the second quarter (18%); and, 22% reported a reduction in perks, such as commuter subsidy, up from 16% last quarter.

Fewer employees report concerns they could be laid off in the next six months (22%) than in second quarter (24%) and the first quarter(26%). One in three said they expect a pay raise or cost of living increase in the next 12 months, while 49% do not.

Nearly 7 in 10 (66%) employees report they are bonus eligible and, of these, more than 3 in 5 (62%) expect a bonus, while 34% do not. Of those who are bonus eligible, 11% expect to get more than their last bonus, 28% expect to receive the same, and 14% expect less.

Employees’ outlook for their company has improved considerably over the past two quarters. Only one in 10 expect their company’s outlook to get worse in the next six months, while 44% expect it to get better and 47% expect it will remain stable.

If they were to lose their job, 44% of employees (including those self-employed) believe they could find one matched to their experience and compensation level in the next six months, up from 39% who said so in the prior two quarters. However, 27% think it’s unlikely and 29% are uncertain. For those who are not employed but currently looking for work, nearly one-third (32%) think it is likely they will be employed in six months in a job matched to their experience and compensation level, and 27% think it is unlikely.

More information is at http://www.glassdoor.com/about/pressCenter.htm .