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CCH® HR MANAGEMENT - 03/19/10

Jobless recovery in the U.S. leaving trail of recession-weary employees in its wake, according to study

The “Great Recession” may have ended, but its impact on the U.S. workforce and employment itself looks to be deep and longlasting, according to the results of new research from global professional services company Towers Watson. The Global Workforce Study (GWS)—a biennial survey of employee attitudes and workplace trends—confirms that the recession has fundamentally altered the way U.S. employees view their work and leaders today, while dramatically accelerating changes to the basic social contract that underpins employment here. In stark contrast to earlier Global Workforce Studies, the 2010 results indicate that U.S. employees have dramatically lowered their career and retirement expectations for the foreseeable future. On-the-job advancement now takes a back seat to a growing desire for workplace security and stability—at the very point in time when traditional employment safety nets are eroding.

“For many employers, the recession has put the final nail in the coffin of the traditional ‘deal’ that once existed between employees and employers,” said Max Caldwell, a leader of the company’s Talent & Rewards business. “Not only have people seen many coworkers, friends and family members laid off, but they know they are increasingly on their own for everything from health care, to managing their career, to planning for a secure retirement. This represents a profound shift for employees and employers alike.”

The results also confirm just how far we’ve moved from the “free agent nation” concept hyped as a new approach to work just a decade ago. A startling eight out of 10 respondents want to settle into a job, with roughly half saying they want to work for a single company their entire career and the rest wanting to work for no more than two to three companies. This move toward workplace “nesting” is no doubt influenced by a perceived dearth of job opportunities, coupled with U.S. employees’ lower appetite for the risks inherent in changing jobs. In fact, more than half (56 percent) of the U.S. workforce expects little change in the job market over the next year, and over a quarter (28 percent) anticipate continued deterioration in the employment picture.

Given these views, it may not be surprising that employees today also appear willing to sacrifice career advancement to maintain what job stability they’ve been able to hang on to through the recession. Specifically, the GWS found that:

• Fifty one percent of those polled said there are no career advancement opportunities in their current roles, and another 43 percent believe they must leave their organization and join another in order to advance to a higher-level job.

• Yet, despite these obstacles to advancement, and the erosion of many of the benefits fundamental to the traditional and highly paternalistic deal, fully 81 percent of respondents said they are not actively looking for other positions.

In perhaps the starkest sign of employees’ intense focus on job security, when respondents were asked about the factors most important in a preferred work situation, more chose a “secure and stable position” (86 percent) than “substantially higher levels of compensation” (74 percent).

“The recession has clearly prompted many employees to rethink their priorities and focus on a longer-term commitment to their employer in return for some semblance of job security — despite the cuts or elimination of many programs, from bonuses to training, traditionally used as retention tools,” said Laura Sejen, a leader of the company’s Talent & Rewards business. “Where once employers fretted over a ‘war for talent,’ they must now plan for a workforce that appears ready to settle in for years — perhaps even decades.”

Source: Towers Watson; www.towerswatson.com.

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