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THE 2017STATE OF EMPLOYEE SATISFACTION AND LOYALTY

2017 STATE OF EMPLOYEE SATISFACTION AND LOYALTY

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Table Of Contents

3 Introduction

4 About the Survey

5 Job Satisfaction and Loyalty

6 Performance, Feedback, and Rewards

8 Employee Accolades and Grievances

9 Millennials in the Workplace

12 Owners and Executives in the Workplace

14 Survey Conclusions

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Modern HR professionals are tasked not only with hiring workers and administering benefits, but with the more nuanced, strategic responsibilities of talent management. Maintaining a skilled, motivated, high-performing workforce can make a huge impact on your company’s competitive edge, but it’s easier said than done.

Data from recent years about job satisfaction and turnover paints a bleak picture of talent management. Gallup’s infamous employee engagement survey found in 2015 that only 32 percent of U.S. employees felt “engaged” at work.1 Almost 51 percent described themselves as “not engaged,” and another 17 percent felt “actively disengaged.” While engagement isn’t the most quantitative metric, it does have a direct impact on employee retention, and losing valuable employees to churn is expensive. Josh Bersin of Deloitte suggests that losing a single employee can cost anywhere from tens of thousands of dollars to 2X their annual salary.2

In this report, TechnologyAdvice will provide up-to-date benchmarks on talent management and employee satisfaction through the results of our nationwide survey. We’ll explore the connections between performance, feedback, rewards, and job satisfaction, and offer practical advice for HR managers. By examining this data, we can answer several important questions:

• Are your current employees happy enough to keep their jobs?

• What factors have the greatest impact of employee satisfaction and longevity?

• How do job search trends correspond with company loyalty?

Introduction

“Maintaining a skilled, motivated, high-performing workforce can make a huge impact on your company’s competitive edge, but it’s easier said than done.”

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MARKETING AUTOMATION BUYER’S GUIDE

About the Survey

The original data contained in this report comes from a nationwide survey of full-time employees in the U.S., conducted between March 14-31, 2017. The survey was designed by TechnologyAdvice and administered through SurveyMonkey. We surveyed a total of 360 U.S. adults (18 and over) about their sentiments and self-evaluations on job satisfaction, performance, loyalty, and job searching.


9%

24%

35%

32%

18-24

25-34

35-49

50+

24%

27%16%

33% < 1 Year

1-2 Years3-5 Years

6+ Years

• 67 percent of respondents describe themselves as “satisfied” or “very satisfied” at work, and 75 percent as “loyal” or “very loyal” to their current employer.

• 57 percent consider themselves above-average performers, according to the responsibilities and goals of their position.

• 42.6 percent of respondents have searched for or considered other jobs in the past 60 days.

• Approximately one in five employees have specific plans to leave their company.

Key Survey Results

15%28%

11% 8%

10%

6%9%

13%

HR

Other

Owner/Exec

Sales

IT

FinanceCustomer Service

Marketing

Age Range

Department

Years at Current Company

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Company Loyalty

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MARKETING AUTOMATION BUYER’S GUIDE

I. Job Satisfaction and LoyaltyLast September, the Bureau of Labor Statistics reported that wage and salaried workers stay with their employer for an average of 4.2 years, down from 4.6 years in 2014.3 While that does represent a decline in longevity for U.S. workers, that decline may be more a reflection of social and economic trends than a product of low job satisfaction.

According to our findings, the outlook on job satisfaction is fairly positive, almost polar-opposite to Gallup’s 2015 research on employee engagement.

The numbers here seem to favor employee longevity, with roughly 75 percent describing themselves as “loyal” or “very loyal” to their current employer. Only 4.6 percent, cumulatively, are “disloyal” or “very disloyal.” Combined with our findings on job satisfaction, these figures make talent management look a lot safer for employers.

And yet, despite their self-analysis as mostly satisfied and mostly loyal at work, 42.6 percent of the employees we surveyed have searched for or considered other jobs in

the past 60 days. What’s more, about one in five have specific plans to leave their company.


Employee Job Satisfaction

Roughly 67 percent of survey respondents describe themselves as “satisfied” or “very satisfied” at work. 16.8 percent are “neutral,” 13.9 percent “dissatisfied,” and 2.3 percent “very dissatisfied.”

Satisfaction levels vary slightly by job function. Although most departments have a similar breakdown, finance professionals show a tendency toward the lower end of the spectrum, with a full 42 percent listing “neutral” or “dissatisfied.” Customer service and Owner/Exec categories contain the highest levels

of satisfied employees, with 37.9 percent and 48.2 percent listing “very satisfied,” respectively.

By contrast, company loyalty — which measures an employee’s level of commitment to their current employer — is a more nuanced metric. It’s difficult to get an accurate read based on someone’s self-evaluation of an abstract concept, so we asked several questions here addressing not just loyalty, but also practical career plans.

2%

1%3%

40%

14%

21%

34%

41%

27%

17%

Very Dissatisfied

Very DisloyalDisloyal

Satisfied

Dissatisfied

Neutral

Loyal

Very Loyal

Very Satisfied

Neutral


43%

19%

57%

81%

Have you searched for or considered other jobs in the past 60 days?

Do you have specific plans to leave your current company?

Yes

Yes

No

No

If three quarters of the workforce say they’re loyal to their company, but almost half are looking for new jobs, there’s clearly a disconnect between perception and reality, between attitude and action. What does that mean for employers and talent managers? It means retaining your employees is more complicated than keeping them happy. In the next section, we’ll examine three important variables.

There are a number of variables that influence employee satisfaction and loyalty — some universal, others specific to industry or job role. In our study, we zeroed in for closer analysis of performance, feedback, and rewards. In a healthy organization, these three factors form an unbroken chain that keeps employees engaged and motivated: low performance results in negative feedback and coaching, which leads to higher performance, positive feedback, and tangible rewards.

II. Performance, Feedback, and Rewards


7

2%

26%

21%

58%

57%

16%

20%

Employee Performance

How often does your employer reward employees for above average work?

Below Average

Never

Average

Sometimes

Above Average

Often

Excellent

Most employees (57 percent) consider themselves above-average performers, according to the responsibilities and goals of their position. Of course, most employees cannot be “above average” without constituting a new average, so perhaps the more accurate insight here is that most employees have a high opinion of the work they do. Only about one in 40 survey respondents rate themselves as “below average” performers.

Despite this trend toward a more ambitious work ethic and positive self-evaluation, the willingness of employers to recognize and reward high-performing employees lags behind. The majority of our respondents (58 percent) say their employer only rewards people for above average work “sometimes.” Another 26 percent said their company “never” rewards employees.


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In a separate question, we found that 34.7 percent of U.S. employees feel they do not receive enough regular feedback from managers and co-workers about their performance. So, not only is a large percentage of the workforce under-compensated for over-achieving, the same group is also under-appreciated. The human work ethic thrives on positive reinforcement, whether that be monetary rewards or verbal affirmation. If neither of those are present in your talent management strategy, you can expect to see engagement levels plummet.

To explore some of the more nuanced factors behind employee satisfaction and loyalty, we asked survey respondents for qualitative feedback about aspects of their job that they appreciate (accolades) or find frustrating (grievances).

After running some unstructured analysis of this feedback, we grouped the answers into major sub-categories that represent the top responses.

List 2-3 aspects of your job that you appreciate:

Compensation: About 44 percent of respondents submitted answers related to pay or benefits (pay, salary, compensation, money, benefits, perks).

Culture/People: 42 percent of respondents listed culture-related aspects of their work as a major positive (culture, team, people, co-workers, atmosphere, environment).

Freedom/Flexibility: 34 percent of respondents expressed gratitude for their freedom and flexibility in the office and offsite (work from home, flexibility, freedom, hours, commute, schedule).

Leadership: Roughly 13 percent praised management or leadership at their company (manager, management, supervisor, boss, executive).

III. Employee Accolades and Grievances

Accolades


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List 2-3 of your current pain points or frustrations with your job:

Compensation: 20 percent of respondents complained about low pay or lack of benefits at work (pay, salary, benefits, compensation, money, underpaid).

Leadership: 13 percent complained about management or leadership (manager, management, supervisor, boss, executive).

Career Development/Organizational Hierarchy: 16 percent listed grievances related to company structure or lack of career development opportunities (team, structure, career, role, position, growth, change).

Communication: 12 percent of respondents have issues with poor communication or lack of feedback at work (communication, feedback, appreciation).

Between 2014 and 2015, the infamous Millennial demographic (those between ages 18 and 34) officially surpassed Baby Boomers in share of the workforce and in sheer size.4 In a desperate effort to slow hemorrhaging turnover and the financial toll associated with it, many employers are scrambling to understand this now-dominant group and cater to their interests.

The stereotypes abound: millennials are fickle; they never stay in one place; they feel entitled to higher pay and higher levels of freedom; they expect flexible hours, unlimited PTO, open office floorplans, recreational diversions; they tire of every job after two years.

Most of these are speculative and don’t offer practical advice for an HR department. We dissected the data from several of our most important questions to see which stereotypes are true and which are circumstantial.

Grievances

IV. Millennials in the Workplace


Unsurprisingly, most millennials are still working toward a position of permanence in the job market. Only 34 percent of 25-34-year-olds and 9 percent of 18-24-year-olds have held their their current position for three years or longer.

Less than 1 year 1-2 years 3-5 years 6+ years

18-24

18-24

25-34

25-34

60%

50%

40%

30%

20%

10%

0%

Millennial Tenure

Millennial Job Satisfaction

60%

50%

40%

30%

20%

10%

0%Very

Dissatisfied

Dissatisfied Neutral Satisfied Very

Satisfied

23%

39%

15%

38%

16%

25%

12%

6%

42%

3%

42%

9%

23%26%

0%

52%

1%

28%


On the other hand, the notion of millennials being constantly restless at work, unhappy with their environment, pay, or leadership, seems exaggerated. Only 23 percent of the 18-24-year-old demographic and about 16 percent of the 25-34-year-old demographic identify as “unsatisfied” or “very unsatisfied” at work. On average, 67 percent of millennials are “satisfied” or “very satisfied” at work — an identical result to that of the survey as a whole. Furthermore, 68 percent of millennial respondents say they are loyal or very loyal to their current employer, compared to 75 percent of the entire sample.

In essence, millennials are no less happy at work or dedicated to their employer than workers in other age groups.

Job search trends among millennials are not dramatically different from those of other age groups, either. Roughly 44 percent of 18-34-year-olds have searched for or considered other jobs in the past 60 days, compared to 39 percent of 35-49-year-olds and 46 percent of those 50 and above.

And yet, when it comes to making specific departure plans, the scales tip:

Millennial Job Searches

Do you have specific plans to leave your current company?

18-3427%

15%

17%

73%

85%

83%

35-49

50+

Yes No


A full 27 percent of millennials say they have specific plans to leave their current company. Since the margin over other age groups is much higher here, it’s safe to assume that, although millennials aren’t necessarily more likely to look for a new job, they are more likely to accept an opportunity, should one arise. Conversely, since older demographics are further along in their careers, they are more cautious about planning an exit.

It wouldn’t be a stretch to say your millennial employees are the most at-risk to being enticed by competitors and outside job offers. If they don’t see the kind of compensation and growth opportunities they think are important to the future of their career, it’s only a matter of time before they entertain an offer.

V. Owners and Executives in the WorkplaceRespondents who listed themselves as “owner/executive” were, by far, the most satisfied, loyal, and engaged group of respondents. A majority of owners/executives (90 percent) see themselves as above average or excellent performers, and 69 percent are “very loyal” to their companies. Only 3 percent have plans to leave for another job, and only 17 percent have even considered another position in the past 60 days.

Owner/Executive Company Loyalty3% 4%

24%

69%

Very Disloyal

Neutral

Loyal

Very Loyal


The qualitative feedback in this category was even more fascinating. Most of the negative comments from owner/exec respondents related to systemic problems like poor technology, lack of resources, or employee turnover, rather than specific people, working conditions, or pay. The positive feedback was sublime:

Ironically, this picture of joy and contentment that takes a lifetime to realize is the same rose-tinted vision many HR managers have for their rank-and-file employees. Job satisfaction aside, it’s rare to find even a mid-level manager who sees a future beyond five or ten years at their current company. In some ways, that means you should expect and anticipate turnover. In other ways, it means you should strive to engage, reward, and compensate employees not just fairly, but competitively, in order to win their allegiance.

“I am realizing a dream. I will likely make this my last job.”

“Autonomy, personal growth.”

“Brings joy to people.”

“Able to flex my creative muscle.”

“Appreciation from owners. The feeling of ‘family.’”

“Everything.”


No matter how talent management and the job market evolve, employers will always struggle with the same challenges: keeping their workforce engaged and productive, and suppressing turnover.

The good news is, people aren’t nearly as miserable at work or as disloyal to their employers as some previous studies have led us to believe. Still, with over 40 percent of current employees searching for and considering new opportunities, human resource departments have their work cut out.

If you don’t already have one in place, institute a formal performance review process. Your employees are hungry for feedback about their work, but they aren’t getting enough of it.

Check in with employees face-to-face to see how they’re doing, offer feedback, and coach them toward greater success. Make sure each team member has a clear understanding of the growth opportunities available to their role.

Reassess employee salaries and wages, based on national averages. Matching the average is good. Beating it is better. You should revisit compensation in tandem with quarterly or biannual performance reviews.

Make sure managers and company leaders are aligned with specific strategies to build rapport with their teams and communicate effectively.

Reassess your HR technology stack. Do you have the necessary systems in place monitor and manage hiring, employee performance, compensation, benefits, training, and succession planning at scale? To compare solutions and get a custom recommendation, use our Product Selection Tool.

TechnologyAdvice is dedicated to educating, advising, and connecting buyers and sellers of business technology. Through unbiased research, careful analysis, and crowd-sourced product reviews in more than 90 software verticals, we help buyers find the best solutions for their business. TechnologyAdvice is based in Nashville, Tenn., and was named to the top half of the Inc. 5000 list of America’s Fastest-Growing Private Companies in 2014, 2015, and 2016.

V. Survey Conclusions

Final Recommendations

About TechnologyAdvice

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Sources

1. “Employee Engagement in U.S. Static in 2015.” Gallup. January 13, 2016. http://www.gallup.com/poll/188144/employee-engagement-stagnant-2015.aspx

2. Bersin, Josh. “Employee Retention Now a Big Issue: Why the Tide has Turned.” Linkedin. August 16, 2013. https://www.linkedin.com/pulse/20130816200159-131079-employee-retention-now-a-big-issue-why-the-tide-has-turned

3. “Employee Tenure in 2016.” Bureau of Labor Statistics. September 22, 2016. https://www.bls.gov/news.release/pdf/tenure.pdf

4. Fry, Richard. “Millennials surpass Gen Xers as the largest generation in U.S. labor force.” Factank. May 11, 2015. http://www.pewresearch.org/fact-tank/2015/05/11/millennials-surpass-gen-xers-as-the-largest-generation-in-u-s-labor-force/

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