engaged june 2011

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Engaged 09 Positive Action legislation: What do UK employees think? Also inside 05 Technology and the 21st century employee

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Engaged is GfK’s review of the latest trends, opinion and research in employee engagement.

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Page 1: Engaged June 2011

Engaged

09 Positive Action legislation: What do UK employees think?

Also inside

05 Technology and the 21st century employee

Page 2: Engaged June 2011

GfK Engaged - June 2011 GfK Engaged - June 2011

More than 2.4 million young British workers aged 18-29 are suffering from stress and believe that their bosses are pressuring them to bear the brunt of recovery from the recession, new research from GfK Engage, suggests (1).

The study, part of a global report carried out among 30,000 workers in 29 countries around the world, reveals that two fifths of UK employees aged 18-29 (40 per cent) feel frequently or always stressed at work.

This is in stark contrast to the nation’s oldest workers, with just one in four of those in their 60s (24 per cent) reporting frequently or always feeling stressed.

The cause appears to be businesses tightening their belts, putting pressure on the youngest and most junior members of the workforce. More than 2.4 million - 39 per cent - of British workers aged 18-29 claim that their employer is using the recession to ask them to do more, compared to just 29 per cent of their sixty-something colleagues. And nearly one in three feel stressed, due to lack of resources to do their jobs effectively (32 per cent) or coming under pressure to work long hours (31 per cent). As a result, young employees are paying a heavy price with their health and wellbeing.

More than 1.5 million young British workers (25 per cent) admit that they are frequently or nearly always affected by the toll work takes on their physical health, while two fifths (39 per cent) feel that their work-life balance frequently or nearly always is a concern (2).

Yet putting pressure on younger workers may be a false economy – one that brings significant long-term costs for businesses.

The report reveals that 5.4 million British workers aged under 30 are less than highly engaged with their employers – that’s nearly nine out of 10 - while their colleagues in their 60s are notably more engaged (3).

And this stands to impact on the international performance of UK companies, with the country ranked just 17th (out of the 29 markets surveyed), for engagement of their young workers with their employer; far behind Macedonia, France and Turkey, Mexico, and the USA, who take the top five places in the ranking (5). See the global infographic on the next page for more information.

Businesses that view young staff as cheap and expendable may well come to count the cost. The UK has a recognised ageing population and so the younger generations are becoming exponentially more important in the workplace, as well as to the nation – they are not only companies’ future talent, but also represent the future financial stability of Britain. It is therefore

crucial that they are nurtured, to encourage maximum productivity and retention.

On the one hand, a largely disengaged workforce has an immediate, negative impact on productivity and morale, and it has a longer term impact on recruitment and retention.

On the other hand, we have a precious core of young British workers who class themselves as ‘highly engaged’ with their employers. These need to be identified and their talents carefully managed, to harvest their drive and potential. Engaged workers want their employer to succeed, want to remain with them, and want to go the extra mile. During tough times, engaged employees and a united workforce are a necessity, not a luxury.

Sources

1) There are 6,191,188 people in Great Britain aged 18-29 who are in employment

(GfK Financial Research Survey). Forty per cent are frequently or always concerned

about their levels of stress at work. 6,191,188 x 0.4 = 2,476,475 employees.

2) Twenty five per cent of young British workers are frequently or always concerned

about their personal health. 6,191,188 x 0.25 = 1,547,797 employees

3) Twelve per cent of British employees aged 18-29 are highly engaged with their

employers. Eighty-eight per cent are not highly engaged. 6,191,188 x 0.88 =

5,448,245 employees

4) Global employee engagement levels of 18-29 year olds

5) The GfK International Employee Engagement Survey was conducted by GfK

Engage. It includes the opinions of 30,556 working adults in 29 countries who were

interviewed between February 8th and April 4th 2011 using online, telephone or in-

person interviewing techniques appropriate to the country.

• 2.4millionyoungBritishworkers“frequently”or“always”feelunderpressureandstressedatwork• 39percentbelievetheiremployerisusingtherecessiontojustifyaskingthemtodomore• Oneinthreestressedduetolackofresourcestodotheirjobeffectively

5.4 million British workers aged under 30 are less than highly engaged with their employers

Poor engagement will impact on the international performance of UK companies, with the country ranked just 17th out of 29 for engagement of their young workers with their employer

1 2

Sukhi Ghataore, Director, GfK Engage

Page 3: Engaged June 2011

GfK Engaged - June 2011 GfK Engaged - June 2011

MOST ENGAGED COUNTRIES LEAST ENGAGED COUNTRIES

50 45 40 35 30 25 20 15 10 5 50% 45403530252015105 %

Macedonia

Philippines

Israel

Turkey

USA

Argentina

Romania

Brazil

Canada

Mexico

Co

lom

bia

Switzerlan

d

France

Au

stria

Bu

lga

ria

Ge

rma

ny

Serb

ia

Slo

vaki

a

UK

Swed

en

Belg

ium

Pola

nd

Ukrain

e

Hungary

Russia

Czech Rep.

Portugal

Peru

Netherlands

Employee EngagementKEY FOR EMPLOYEES WHO ARE HIGHLY ENGAGED

Source: GfK International Employee Engagement Study 2011, 30,556 interviewed employees in 29 countries

18 to 29 years old 30 to 39 years old 40 to 49 years old 50 to 59 years old 60 years old & overTotal

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Page 4: Engaged June 2011

GfK Engaged - June 2011

Increasedproductivity,orincreasedstress?NewfindingsbyGfKshowthat,althoughmodernworkersareembracing technology rightnow, there isevidence that thepaceof change isriskingadividedworkforce.Thissituationpresentssignificantchallengesforpolicymakersandbusinessleaders,creatinganeedtoensuretheworkforceisadequatelytrainedandcanmanagetheincreasedpressureandstresslevelsofworkinginanever-connectedenvironment.

Teleconferencing, BlackBerries, smartphones and, now, tablet computers mean it has never been easier to be in contact with the office. As technological advances alter the way we work, a debate has emerged between those that stress the unhealthy blurring of the boundaries between work and personal lives, and those that see technology as empowering the modern worker to fit their career around other demands on their time.

The 21st century worker’s ‘love affair’ with technology A recent GfK survey shows that 60 per cent of workers think technology helps them to do their job better, and nearly half (47 per cent) say that it has a positive impact on their work-life balance. Only 7 per cent say it has a negative impact.

The positive benefits driving these perceptions include technology’s power to help workers organise their time better and communicate more effectively with colleagues, with 43 per cent of workers feeling that technology makes them more productive at work. The cumulative result of these benefits is that just over half (52 per cent) of workers agree that technology empowers them in their job. Not only is technology cool, it also helps working people get things done.

High earners have highest appreciation of technologyUnsurprisingly, it is high-earners in London that appear most positive towards our ever-connected world. They, more than most, need to be in constant contact with colleagues and the latest market news, and devices such as the BlackBerry or iPad make this possible. Some would consider this ever-connectedness to work to be a burden, but the attraction of technology to these busy executives can be summed up in one word – flexibility.

For high earning households, 62 per cent think technology allows them to be more productive at work (compared to 43 per cent for the overall population) and 7 out of 10 claims that technology’s ability to let them work occasionally from home has a positive impact on their work-life balance. This flexibility gives a sense of control, leading 72 per cent of high earners to say that the technology they use at work makes them ‘feel more empowered in their job’ (compared to just over half of the overall working population).

5 6

A recent GfK survey shows that 60 per cent of workers think technology helps them to do their job better, and nearly half (47 per cent) say that it has a positive impact on their work-life balance.

Kieran Pedley, Senior Consultant, GfK Engage

Page 5: Engaged June 2011

GfK Engaged - June 2011

The disaffected minority So far, it looks like the 21st century love affair with technology is continuing unabated. But there is a sizeable minority who are fearful of the role technology will play in their future careers. Some senior executives also struggle with the pressure of always being on call, as well as low paid workers worrying that their lack

of technological knowledge will threaten future job prospects. Added to that, some middle management workers worry that future changes in technology could threaten their existing job, piling more stress on top of current job insecurity and the extended retirement age.

The struggle to switch offEven amongst the largely favourable higher management, some admit that technology means they struggle to switch off. Just over a third (38 per cent) of those in higher management positions surveyed admit technology makes them feel they have never really left work, and one in four say technology means their work life often disrupts their personal life.

This sets a new challenge for policy makers; Bupa estimates that 1 in 6 UK workers consider their job very or extremely stressful, and ranks work place stress as one of the key causes of sick leave. GfK research shows that 1 in 5 UK workers state that work related pressure and stress frequently or nearly always impacts on their personal health. Ever-connected workers need clear guidance on when and how to switch off from work, in an era where the boundaries are often unclear.

The struggle to keep up As some worry about being able to switch off, others worry about being left behind. Overall, a quarter of workers fear that advances in technology may threaten their current job in the future, and this rises to 40 per cent for those earning less than £14,000, and 35 per cent for semi or unskilled workers. Businesses and Government face a clear need to provide training programmes, both inside and outside of the workplace.The majority of workers currently feel comfortable in our ever-connected business world and think that technological advances help them to juggle competing priorities of work and home life well. However, some find it hard to switch off, which is having a negative effect on their work-life balance – and ultimately, therefore, on their long-term productivity at work.

In addition, it should not be assumed that the workforce is advancing as technology advances. There is a significant number who admit to a fear of being left behind in their careers, due to their lack of knowledge of technology and the rate at which it is developing.

Policy makers and business leaders face significant challenges, to ensure an adequately trained workforce that can manage the increased pressure and stress levels of working in an ever-connected environment.

Just over half (52 per cent) of workers agree that technology empowers them in their job. Not only is technology cool, it also helps working people get things done.

A quarter of workers fear that advances in technology may threaten their current job in the future, and this rises to 40 per cent for those earning less than £14,000, and 35 per cent for semi or unskilled workers.

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Page 6: Engaged June 2011

GfK Engaged - June 2011 GfK Engaged - June 2011

cause tension between colleagues, increasing work related stress and incidence of bullying/ ostracisation. If such quotas are introduced it will be imperative that organisations are equipped to deal with potential increased skepticism and prejudice.

In the long term, positive action can be essential to attracting and retaining talent, as well as engaging staff across the organisation. For instance, if female workers are generally given less opportunities to climb the career ladder, they may not see the need to work to their full potential, which will decrease their levels of engagement and have a direct impact on the bottom line.

On the other hand, female workers knowing that they have a better chance of getting promoted without having to put in a lot of hard work, could lead to complacency, low levels of engagement and decreased contribution to the future success of the organisation.

Whilst there may be overall benefits in doing so, a recent survey by GfK highlighted that the majority (60 per cent) of employees feel that it would be unfair to use positive action in the recruitment process. One in four (25 per cent) were unsure, whilst only one in six felt that it would be fair.

Increasingly, governments worldwide are introducing legislation around positive action, aiming to improve the social imbalance of the workforce and combat unemployment. Currently positive action measures are more widely spread across the public sector and regulations are loosely structured around quotas.

A clear example of social imbalance is the under-representation of women in the boardroom. Currently, only one-in-eight directors of FTSE 100 companies are women, whilst women make up nearly half (46 per cent) of the working population. The European Commission has warned

that, if companies don’t take any measures to address the gender imbalance in the boardroom, they will be forced to do so in the future as, based on progress to date, it would take 70 years to balance the sexes (See: http://www.guardian.co.uk/business/2011/feb/24/davies-inquiry-women-boardroom-targets-quotas).

Quotas are already working well for a number of countries and others are set to follow. For instance: Brazil has set up a 20 per cent quota for the disabled in public services. Norway, Spain and Belgium have allocated quotas increasing the proportion of women in senior management; France is planning to join them by introducing a 40 per cent quota for women. India already reserves a third of local council seats in towns and villages for women, which could soon extend to the national parliament.

Why is it important?Above all, employers shouldn’t forget that their workforce is the face and the voice of the organisation. Staff members play a major role in building their employers’ reputation, brand and image, and if organisations show acceptance of a diverse workforce, they can instantly become appealing to a wider variety of clients - which ultimately results in a larger customer base, better financial performance and growth.

What are the implications?In the short term, if policies and quotas are put into place, employees may become suspicious and challenge whether the approach is fair. There may be skepticism, which could raise concerns that less qualified people will be favoured, just because they are from an under-represented group. Whilst the candidate may be fully qualified, the mere introduction of these quotas may place the appointed candidate in a difficult position and

is it time to take some positive action?Irina Blagoeva, Consultant, GfK Engage

InAprilofthisyear,provisionsinthe2010EqualityActmadepositiveactionduringtherecruitmentprocess legalforthefirsttime.Unlikepositivediscrimination,(employerseffectivelyfillquotasforunder-representedgroups irrespectiveof their skill set)positiveactionmeans thatemployers cannowchoosetohirecandidatesfromsuchgroups,providedthattheyareasqualifiedfortheroleasotherapplicants.Infact,similarinitiativesarealreadyworkingwellinmanycountriesacrosstheworld.

A recent survey by GfK highlighted that 60% of employees feel that it would be unfair to use positive action in the recruitment process. One in four (25%) were unsure, whilst only one in six felt that it would be fair

09 10

How can it best be implemented?The following actions can play an important role in the successful implementation of a positive action policy:

»» Give it time – a drastic cultural change is never a good idea for small or large organisations. It is always advisable to take one step at a time and introduce employees to the idea gradually.

»» Alter your image/brand to appeal to a wider variety of candidates – women, ethnic minorities, disabled, etc.

»» Internal communications are fundamental in obtaining staff buy in. This can be achieved through organising training sessions on positive action.

»» The policies need to be fair to all, and candidates selected based on qualifications first; otherwise there is a risk of reversing the effect of positive action and creating more inequality at the workplace.

Whether you agree with it or not, one thing is certain – positive action is here to stay, and demographic characteristics of the workforce will be playing an increasingly important role in selection and promotion practices globally in the years to come.

Organisations need to consider the long term effect of implementing a positive action policy now and obtain staff buy in over time, so they can secure a skilled, varied, top-class, motivated and engaged workforce who can contribute to the future success of the organisation.

Page 7: Engaged June 2011

Sukhi Ghataore Director, GfK EngagePhone: +44 (0) 20 7890 9313

Email: sukhi.ghataore@gfk com

GfK EngageLudgate House245 Blackfriars RoadLondonSE1 9UL

Contact us

To find out more about any of the articles featured in Engaged or to speak to us, contact;

GfK Engage is GfK’s dedicated team of Employee Engagement experts, offering a wide range of information and consultancy services that help organisations develop their talent more effectively.

Our HR consultants provide end-to-end solutions, designing, implementing and supporting people-related strategies including; employee engagement, talent management, HR & team effectiveness, internal communications, change management, training and coaching and business performance metrics.

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