Recent corporate strategy
shifts have left many employees confused about the link between their jobs and
company objectives, making recovery efforts more difficult for companies,
according to a new Watson Wyatt study of nearly 13,000 workers.
Conducted earlier this
year, Watson Wyatt´s WorkUSATM 2002 survey found that less than half of
employees (49 percent) understand the steps their companies are taking to reach
new business goals - a 20 percent drop since 2000. The study also found that
employees are unclear about the important connection between job performance
and pay; only 35 percent see a clear link between the quality of their job
performance and the money they earn.
"Confusion about corporate
goals and uncertainty about the link between pay and performance will
complicate economic recovery for many companies," said Ilene Gochman, Watson
Wyatt´s national practice leader for organizational effectiveness and the
author of WorkUSATM 2002. "This is extremely unfortunate because we know that
there is tremendous positive impact to the bottom-line when employees see
strong connections between company goals and their jobs. Many employees aren´t
seeing that connection."
According to the study,
three-year total returns to shareholders (TRS) are three times higher at
companies where employees understand corporate objectives and the ways in which
their jobs contribute to achieving them.
"Companies cannot develop
effective teams and working relationships unless everyone involved clearly
understands the connections between their jobs and objectives," Gochman added.
"Workers and their companies excel when they know why their jobs matter and
they understand what´s in it for them."
In addition to findings on
the link between employees and business goals, the WorkUSATM survey also
examines employee trust levels, effective business change management,
communication, performance management and worker attitudes towards pay and
benefits.
"In every case, we found
that employee attitudes make a difference when it comes to business
performance," Gochman said. "For example, companies that instill trust, manage
business changes effectively and communicate openly with employees have much
higher shareholder return rates than companies that don´t. This means that in
today´s economic climate, no company can afford to ignore what their employees
are thinking."
WorkUSATM is one of the
largest and most current statistically representative surveys on the attitudes
of U.S. workers. The 2002 survey includes responses from 12,750 workers at all
job levels and in all major industries.
Key Findings from the
Watson Wyatt WorkUSATM 2002 Survey
Percentage of workers who:
Have confidence in the job
being done by senior management
2000: Â 50%
2002: Â 45%
Believe their companies
conduct business with honesty and integrity
2000: Â 68%
2002: Â 63%
Trust senior leaders at
their firms
2000: Â N/A
2002: Â 39%
Say their companies
effectively manage business changes such as downsizing, mergers, restructuring,
and expansion
2000: Â N/A
2002: Â 43%
Believe their companies
communicate effectively with employees
2000: Â N/A
2002: Â 32%
Say their companies involve
employees in decisions that affect them
2000: Â 27%
2002: Â 19%
Say senior management
motivates them to perform well
2000: Â 40%
2002: Â 32%
See no clear link between
their jobs and pay
2000: Â N/A
2002: Â 40%
Believe that high
performing workers go unrewarded
2000: Â 42%
2002: Â 40%
Say their companies do a
good job telling them how their pay is determined
2000: Â 56%
2002: Â 43%
Are satisfied with their
pay
2000: Â N/A
2002: Â 60%
Are satisfied with their
benefits
2000: Â N/A
2002: Â 49%
Believe their pay packages
compare well with those offered by other companies
2000: Â 57%
2002: Â 48%
Believe their benefits
packages compare well with those offered by other companies
2000: Â 38%
2002: Â 48%
View their stock option programs
favorably
2000: Â 57%
2002: Â 50%
View their profit sharing
plans favorably
2000: Â 55%
2002: Â 45%
Source: Watson Wyatt
WorkUSATM 2002 Study
Watson Wyatt & Company,
the primary subsidiary Watson Wyatt & Company Holdings (NYSE: WW), is an
international human capital consulting firm that provides services in the areas
of employee benefits, human resources technologies and human capital
strategies. The firm is headquartered in Washington, D.C., and has more than
4,250 associates in 61 offices in the Americas and Asia-Pacific. Together with
Watson Wyatt Partners, a leading European-based consulting partnership, the
firm operates globally as Watson
 Wyatt Worldwide. Watson Wyatt Worldwide has more than 6,300
associates in 87 offices in 30 countries.