Glassdoor Q2 Employment Confidence Survey: More Employees Willing to Make Concessions to Keep Jobs; 50% Expect No Pay Increase

Glassdoor Q2 Employment Confidence Survey: More Employees Willing to Make Concessions to Keep Jobs; 50% Expect No Pay Increase

The Bureau of Labor Statistics reported last week that the number of jobs lost in June was higher than expected with 470,000 job lost — 25,000 more than what was reportedly lost in May, pushing the national unemployment rate to nearly 10%.  According to the Glassdoor.com Q2 Employee Confidence Survey conducted by Harris Interactive, companies are cutting more than jobs as more than half (54%) of employees report their employers have made changes to the number of staff, organizational structure, compensation and benefits, or other perks over the past six months.

It seems these actions are causing employees to come to terms with the new face of the economy and its impact on the workplace – and their livelihood. You can read our press release or see quarter-by-quarter details in our Q2 Employment Confidence Summary Sheet.

In Q2, more employees are also willing to make various concessions in order to keep their jobs. The most noted concessions include:

  • 71% take on more projects and responsibility
  • 64% work more hours
  • 42% take a cut in salary or wages, up from 30% in the fourth quarter of 2008

About one-third (32%) of employees say they expect a pay raise or cost of living increase in the next 12 months, while 50% do not.  This compares to Q408 when 40% of employees said they expected a pay increase while 40% did not. Interestingly, pay raise expectations are lowest among those living in the west (see chart below).

Glassdoor Report: Do you expect pay or cost of living increase in the next 12 months?*

(Employed full/
part-time)

Northeast

Midwest

South

West

Yes

38

33

36

21

No

43

49

47

60

Don’t know

19

18

17

19

* Based on a nationwide sample of 2,261 U.S. adults aged 18 years and older, of whom 1,278 are employed full time or part time

What if you lost your job tomorrow?  It’s happening to people every day and 39% of those currently employed, including those self employed, think it’s likely they could find a job matched to their experience and compensation in the next six months, while nearly one-third (31%) think it’s unlikely.  For those 55+, 41% say it’s unlikely. But what does this mean?

Employees are consumers and expectations of employment factors (such as pay, job security, ability to get re-hired and employer outlook) can not only impact employee morale and motivation, but can also affect consumer behavior. (See our survey preview post on how layoffs impacted summer travel this year.)

We’ve only been tracking these factors for a couple quarters and we’ll continue to monitor over time to see how economic recovery or further downturn could impact employee sentiment. It may become a leading indicator for consumer confidence.

Categories: Glassdoor Updates

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