Employee engagement has been on the decline and increasingly more workers are looking to change jobs. This diminished loyalty and widespread apathy can undermine business performance.

Half of all employees in the United States are really not happy. That’s the takeaway from the latest installment of Mercer’s What’s Working study.

Based on a survey of nearly 30,000 workers in 17 countries, including 2,400 employees in the U.S., the consultancy concluded that base pay is the most important element of the employment deal, yet U.S. workers show lower satisfaction with this element — 53 percent satisfied, down from 58 percent in 2005.

As another example, only 43 percent of U.S. employees believe they are doing enough to financially prepare for retirement, down from 47 percent in 2005.

Meanwhile, scores for career development and performance management remain low. Just 42 percent of employees agree that promotions go to the most qualified workers in their organization, and less than half (46 percent) agree that their organization does an adequate job of matching pay to performance.

“Employees see a ‘disconnect’ between what employers are promising and what they are delivering,” Mindy Fox, a senior partner at Mercer and the firm’s U.S. region leader, said in an announcement of the findings.

As a result, overall scores are down across key engagement measures, while intention to leave is up across all employee segments.

According to Mercer’s findings, which are part of a six-month client outreach campaign called Inside Employees’ Minds: Navigating the New Rules of Engagement, nearly one in three U.S. workers (32 percent) is seriously considering leaving his or her organization. This figure, up sharply from 23 percent in 2005, is even higher among younger workers: 40 percent of employees age 25-34 are seriously considering leaving, along with 44 percent of employees age 24 and younger.

Among employees surveyed by Deloitte this past spring, only 35 percent said they expect to remain with their current employers. In other words, nearly two out of three employees surveyed worldwide (65 percent) are either passively or actively testing the job market.

In Deloitte’s report, the 65 percent of employees exploring their career options believe their companies’ corporate talent programs are seriously lacking. In the hierarchy of what isn’t working, employees identified:

• Uncertain career paths — Approximately 57 percent believe their companies do a “poor” or “fair” job of creating career paths and challenging job opportunities;
• Little leadership development — On average, 35 percent rate their company’s leadership development programs as “poor” or “fair”;
• Lack of trust in leadership — Approximately 57 percent rank their company’s ability to effectively inspire trust as “poor” or “fair”;
• Difficulty retaining top performers — Exactly half (50 percent) believe their company is doing a “poor” or “fair” job; and
• Inadequate training programs — Nearly half (48 percent) believe their company is doing a “poor” or “fair” job managing and delivering these programs.

“Of equal concern is apathy,” Mercer states. “The one-fifth of employees who didn’t commit to staying or leaving are least satisfied and engaged of all.”

While 21 percent of workers are not looking to leave, they view their employers unfavorably and post “rock-bottom scores” on key measures of engagement with their job, work and employer. Among those:

• Only half say they have been treated fairly by their company;
• Only 48 percent are proud to work for their organization;
• Only 46 percent would recommend their employer as a good place to work;
• Only 34 percent feel a strong sense of commitment to their employer;
• Only 40 percent see a long-term future with their employer; and
• Only 29 percent believe that the organization is well-managed.

In most cases, the scores for this group are even worse than those of the workers who are seriously considering leaving their jobs.

Put simply, employers will be stuck with a core group of disaffected employees unless they can figure out exactly who they are and then re-engage them.

“The business consequences of this erosion in employee sentiment are significant, and clearly the issue goes far beyond retention,” according to Fox. “Diminished loyalty and widespread apathy can undermine business performance, particularly as companies increasingly look to their workforces to drive productivity gains and spur innovation.”

Related

Who are the Happiest Workers?

Still Employed…Still Dissatisfied

The Impact of Job Satisfaction

Why Having Engaged Employees Matters

Making Disengaged Employees Feel Valued

Overworked or Burned Out?

Fighting Job Burnout

Resources

Inside Employees’ Minds: Navigating the New Rules of Engagement (free registration required)
Mercer, June 20, 2011

One in Two US Employees Looking to Leave or Checked Out on the Job…
Mercer, June 20, 2011

Talent Edge 2020: Building the Recovery Together…
Deloitte, April 2011

Additional Resources

Employee Engagement Report 2011
BlessingWhite, December 2010 / January 2011

31% Is Not a Passing Grade Says New Employee Engagement Study
BlessingWhite, Dec. 15, 2010

Employees Will Stay for the Work but Leave for Career
BlessingWhite, April 12, 2011

7 Ways to Improve Employee Satisfaction
by April Shetrone
Inc.com, May 18, 2011

Talent Challenge 2011: Moving Beyond Recession as Retention Strategy
by Jeff Schwartz
Business Finance, July 6, 2011

2 Secrets to Keeping Your Employees Engaged
by Rieva Lesonsky
Small Business Trends, May 11, 2011

Retaining, Recruiting Top Talent Key Priorities for Employers in 2011
Buck Consultants, May 12, 2011