EMPLOYEE LAYOFF FEARS DROP TO LOWEST LEVEL IN NEARLY FIVE YEARS; CONFIDENCE IN JOB MARKET & BUSINESS OUTLOOK STABILIZES
Reports of large-scale hiring are down, while more employee perks added at work in the past six months
SAUSALITO, Calif. – (October 4, 2013) – The Glassdoor Q3 2013 Employment Confidence Survey¹ may be showing signs that employees² feel like they won’t be forced to head to the unemployment line any time soon. The findings reveal that employees (15 percent) feel less concerned about being laid off in the next six months, a low since Q4 2008 and down seven percentage points since last quarter. The survey, conducted online by Harris Interactive, evaluates four key indicators of employee confidence: job security, business outlook, job market optimism/re-hire probability and salary expectations.
As layoff concerns retreat, so does the number of employees reporting their employer initiated large-scale hiring (18 percent), a 15-percentage point drop since last quarter and a low since Q2 2011. (Reports of hiring based on employees who saw positive changes in their company in the past six months.) This differs from last year when large-scale hiring increased eight percentage points from 25 percent in Q2 2012 to 33 percent in Q3 2012.
The decline in large-scale hiring and expected layoffs may reinforce why employees’ optimism in their company’s business outlook in the next six months remains relatively unchanged. Half (51 percent) believe their company’s business outlook will stay the same in the next six months, 40 percent believe it will get better and nine percent believe it will get worse. When separating opinions by gender, more male (45 percent) than female (35 percent) employees believe their company’s business outlook will improve, while male employees (18 percent) also report more concern over being laid off in the next six months than female employees (11 percent).
Job market optimism remains unchanged when compared to last quarter, as 43 percent of employees believe that if they lost their current job they could find a job matched to their current compensation and experience levels in the next six months. Unemployed job seekers also show little wavering in their confidence levels, as 38 percent believe they could find a job in the next six months.
“This is the first quarter since the Great Recession where we are finally seeing signs of stabilization within the job market, and as a result, employees are feeling more secure in their current jobs than they have in several years,” said Rusty Rueff, Glassdoor career and workplace expert, who ran global HR departments at Electronic Arts and PepsiCo before co-authoring Talent Force: A New Manifesto for the Human Side of Business. “The signal is clear for both companies and employees that we must remain calm, carry on, and stay focused on doing our best to help move the economy forward.”
As for salary expectations, fewer employees (37 percent) reported they expect a pay raise or cost-of-living increase in the next 12 months, down three percentage points since last quarter. Employees with a total household income of $75,000 or more per year are more optimistic (44 percent) about receiving a pay raise or cost-of-living increase in the next 12 months, when compared to those who earn a total household income of less than $35,000 per year (28 percent). However, when it comes to additions employers made during the past six months, more employees (76 percent) reported new perks, such as the option to work remotely, dress casually, work flexible hours, and/or receive new stock, a high since Q2 2011 and up 29 percentage points since last quarter.
SURVEY SUPPLEMENT & IMAGES AVAILABLE: For more details, including graphics highlighting quarter-by-quarter survey results, please see the full Q3 2013 Glassdoor Employment Confidence Survey Supplement: http://www.glassdoor.com/press/surveys. To request the survey supplement, images and/or complete survey methodology, please contact pr [at] Glassdoor [dot] com.
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² For the purposes of this study “employees” were defined as U.S. adults 18+ employed full time and/or part time unless otherwise indicated.
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