Modern Survey National Study Indicates Employee Engagement Levels are on the Decline as Economic Woes Hit Home and at the Office.

Minneapolis, MN, November 12, 2008 — In the wake of recent economic turmoil, employee engagement figures to be more critical to business health than ever, yet new scientific research shows employee engagement on the decline. A recent national study by Modern Survey has shown employee engagement levels dropping in every category measured, including a 7% decline in the number of employees that say they “take pride in their company.”

A scientific study of national worker opinions by Modern Survey confirms that employee engagement as a whole has clearly declined over the last year. An astonishing 21% of U.S. workers were actively disengaged as of this past August when the study was conducted, a difference of four percentage points from August 2007.

Included in this national study were five questions that measure the extent to which employees take pride in their company, believe they have a promising future at their company, recommend their company as a great place to work, go “above and beyond” their normal job duties to help their company succeed, and intend to stay with their company.

These questions were first posed to a nationally representative sample of the U.S. workforce in August of 2007, then again in August of 2008. The survey was conducted via the internet, and was completed by 1000 U.S. adults (18+ years old) who matched census data in terms of age, gender and region. The percentage of workers who responded favorably to their level of engagement (i.e. who agreed or strongly agreed) for each of Modern Survey’s Employee Engagement Index questions, is shown below.

All five components of the Engagement Index show erosion in favorability, and organizational pride shows the largest (and most statistically significant) decline over the last year.

Notably fewer workers feel a strong sense of pride in their companies. Now only about half say they are willing to put in extra effort to help their company succeed and only about half say they intend to stay with their company for a long time.

“You can’t open a newspaper or surf the internet without being bombarded by headlines and stories about the country’s ever-deepening economic troubles. Month after month, we’ve all been learning about the subprime mortgage mess, plummeting property values, foreclosures, layoffs, and the collapse of some of our largest financial institutions. People are spending a lot more time worrying about how to make ends meet than they did just a year or two ago,” said Bruce Campbell, a Senior Consultant at Modern Survey.

The statistics shown above reflect the current mood of the U.S. workforce as a whole, but what about the engagement levels of individual workers? Modern Survey uses a proprietary method for categorizing individual workers into four distinct levels of engagement, based on the average rating each worker gives across five Engagement Index questions. Fully engaged employees answer at least four of the five questions with the most positive response possible. Moderately Engaged employees give mostly positive answers, while Under Engaged employees give mostly neutral to mildly positive answers. Disengaged employees give mostly negative answers.

Modern Survey’s study determined the percentage of U.S. workers that fell into the following engagement categories:

According to Modern Survey President Don MacPherson, “These findings should serve as a wake-up call to leaders and managers in any type of organization. As economic conditions worsen, you’ll be counting more and more on your employees to put forth their best efforts and to pull your organization through. These results suggest that unless you pay special attention to the engagement of your workforce, and to maintaining the type of work environment in which employee engagement flourishes, fewer and fewer of your employees will be willing to “give their all” to help your company succeed.”

“It’s important to note that our second survey was conducted after gas prices had peaked in July, and after the demise of Bear Stearns, but before the troubles at Merrill Lynch, Lehman Brothers, Fannie Mae and Freddie Mac, or AIG became public knowledge,” Campbell clarified. “We know what the basic requirements for having an engaged workforce are, and three of the key levers are giving people opportunities to grow and develop in their careers, providing lots of recognition and sincere appreciation for your people and their accomplishments, and doing whatever you can to make them feel like they are part of a winning team. Given what’s happened since August to further fuel workers’ anxieties about the economy and about their own futures, smart leaders will be paying special attention to these basic needs of their workforce over the coming months.”

About Modern Survey

In less than a decade, Modern Survey has established itself as a leader in the online survey industry, providing a robust suite of proprietary technologies combined with an array of consultative services that help our clients manage talent throughout the employee life cycle, measure and evaluate customer satisfaction and gain insight into changing markets. Modern Survey products and services have spanned 100 countries on six continents in over 30 languages. Each year, Modern Survey receives millions of web survey responses and generates tens of thousands of advanced reports. Through direct and partner channels, Modern Survey’s tools and services have reached more than 500 companies, over 80 of which are among the Fortune 500.

Media Contact:
Jennifer Halstead, Director of Business Development
Modern Survey
jhalstead@modernsurvey.com
612/746.3917