research paper

Canada survey summary – June 2011

Navigating the new rules of engagement

Canada survey summary 2

About What’s Working™

Mercer’s proprietary What’s Working™ survey, which examines employee views on work, was conducted over the past two quarters among nearly 30,000 workers in 17 countries, including more than 2,000 workers in Canada. The survey, results from which were last released in Canada in 2006, includes more than 100 questions on a range of work-related topics and refl ects the overall demographics of the Canadian workforce in terms of age, gender, job level and industry.*

* The survey sample does not include workers from the public sector.

Canada survey summary 1

Mercer research confi rms: Employees are increasingly disengaged One in three is seriously considering leaving his or her organization; one in fi ve is indifferent New Mercer research shows that Canadian employees are less committed to their employers and less satisfi ed with many aspects of the work experience compared to the previous survey, and they have one of the highest levels of disengagement among the coun- tries surveyed, with a total of 58% “checked out” on some level. Slightly more than one-third of Canadian workers say they are seriously considering leaving their organization at the present time; another one- fi fth is ambivalent about whether to stay or go.

Two factors are behind this shift: an evolving employment deal that employees view as a series of takeaways, plus responses to the economic downturn, such as pay freezes, smaller merit increases, and cuts in training, promotions and jobs. From the employee viewpoint, not only has the deal been redefi ned, in many cases, it is also not being delivered as promised.

The potential business consequences of this erosion in employee sentiment are signifi cant. As the economy continues to improve and additional job opportunities emerge, employers want to hang on to valued talent and minimize any productivity or morale issues among workers who remain. Adding to the complexity are differing expectations, work styles and fi nancial considerations among the multiple generations that comprise today’s workforce.

Mercer’s What’s Working™ survey validates what employers have sensed or even seen in their own employee survey data: Employees are not happy. It also confi rms that the employment relationship currently resides at a critical infl ection point. An engaged workforce is more necessary than ever, but

at the same time, more diffi cult to achieve, due in part to ongoing fi nancial pressures that limit organi- zations’ investments in potential solutions.

Among those employees who are more fully engaged, the ability to do a good job at a successful, respect- able organization and having the fl exibility to provide high-quality products and services are key to their commitment.

A clear understanding of “what’s inside employees’ minds” represents an important step in developing a blueprint that skillfully combines existing approaches with innovative, new ideas to improve engagement, performance and productivity.

Following are highlights of Mercer’s new What’s Working survey fi ndings for Canada, organized into seven content areas that represent the way employees view the employment relationship.

of workers are seriously considering leaving

In Canada:

1 3

2 Canada survey summary

Overall, 36% of Canadian workers are seriously considering leaving their organization at the present time (up from 26% in 2006), with another 22% uncertain about whether they’ll stay or go – together representing well over half a workforce that is disaffected on some level. The number seriously considering leaving is even higher among younger workers: 43% of employees age 25–34, along with 45% age 24 and younger, say they are contemplating their departure. Slightly more men (37%) than women (34%) are considering leaving. And more managers (43%) than senior managers (34%) or nonmanagers (33%) are considering leaving.

Survey scores among Canadian workers dropped in varying degrees on most other engagement-related questions as well, with the greatest decline seen in the number of employees who say their work provides a sense of personal accomplishment – down from 80% in 2006 to 68% in 2010. (See Exhibit 1.)

Engagement by the numbers Exhibit 1: Engagement scores decline in varying degrees

20102006

0% 10% 20% 30% 40% 50% 60% 70% 80%

My work gives me a feeling of personal accomplishment 80%

68%

I feel a strong sense of commitment to my organization 67%

60%

Overall satisfaction with my job 73%

69%

I am proud to work for my organization 72%

67%

Overall satisfaction with my organization 69%

65%

Canada survey summary 3

Survey question

Percentage who agree among

Gap Those seriously considering leaving

Those not considering leaving

I believe that I have a long-term future with my organization 52% 78% 26%

I would recommend my organization to others as a good place to work 59% 83% 24%

I am proud to work for my organization 59% 82% 23%

I feel a strong sense of commitment to my organization 55% 76% 21%

I am con! dent that my organization will be successful in the future 65% 85% 20%

Personally, I feel that I am treated fairly in my organization 61% 79% 18%

Overall, I am con! dent that I can achieve my long-term career objectives in my organization

51% 67% 16%

My organization has established a good reputation for customer service 67% 83% 16%

Employees in my organization are treated with dignity and respect, regardless of their position or background

59% 75% 16%

I am given good opportunities for continuous learning to improve my skills 57% 72% 15%

Employees who are seriously considering leaving their organization at the present time hold very different views of work than employees who are planning to stay. Their perspective permeates their survey responses. Following are the 10 largest gaps in their scores.

Engagement gap runs deep and wide

Contrary to what has been written previously, this year Canadians indicated that pay is the most important part of their employment deal – by a wide margin. Yet only a little more than half (53%) say they are satisfi ed with their base pay, and slightly more (58%) feel they are paid fairly given their performance and contributions to the organization.

At the same time, signifi cantly fewer employees today understand how their pay is determined (74% now, compared to 82% in 2006), which may contribute to their sense of dissatisfaction. And fewer believe that the pay in their organization is as good as or better than the pay offered by other organizations in their geographic area (52% compared to 60% in 2006).

Although still a minority, more employees partici- pate in bonus plans today (39%) than in 2006 (29%). Of those who participate, 70% say they are personally motivated by their organization’s incentive compensa- tion plan. Those who participate also report a greater sense of recognition and reward. For example, 65% of bonus-plan participants say their performance for a good job is recognized, compared to 47% among nonparticipants.

Today’s employees also credit their employers for improvements on a variety of performance-related issues. (See Exhibit 2.)

20102006

0% 10% 20% 30% 40% 50% 60% 70% 80%

My manager regularly coaches me on improving my performance 32%

42%

I understand how my performance is evaluated 58%

63%

I have had a formal performance appraisal or review in the past 12 months 46%

54%

My organization does an adequate job of matching pay to performance 42%

46%

Exhibit 2: Employees cite improvements in performance managementMy Pay

However, new data go beyond the link between performance feedback and employee satisfaction, showing those who have had a performance review in the last year are also signifi cantly more positive about their organization and its ability to manage talent. (See Exhibit 3.)

Did not receive performance reviewReceived performance review

0% 10% 20% 30% 40% 50% 60% 70% 80%

Manager provides informal feedback 62%

39%

The organization is doing a good job of retaining talent 54%

39%

There is opportunity for growth and development 62%

42%

The organization is well managed 60%

42%

Exhibit 3: Employees who receive performance reviews view their employer more positively

4 Canada survey summary

Canada survey summary 5

Today, 66% of Canadian employees rate their overall benefi ts program as good or very good, and 58% say they are satisfi ed with their health care benefi ts. About 48% agree that benefi ts play a signifi cant role in their decision to continue to work for an organization.

While 57% say their benefi ts choices meet their needs, 53% say their benefi ts are as good as or better than those offered by other organizations in their industry, down signifi cantly from 65% in 2006.

Forty-three percent of employees want more choice and control to reduce the value of some benefi ts in order to increase the value of others to better fi t their needs. About the same number (41%) say they would be willing to use some of their own money to pay for improved or new benefi ts that are important to them.

In general, employees indicate that benefi ts are less important to them in their overall employment deal relative to such elements as pay, retirement plans and type of work. That may be because, for better or worse, employers have done little in the way of dramatically modifying their benefi ts programs as a result of the economic downturn. Acknowledging the continuation of the status quo, it appears employ- ees simply did not have benefi ts as high on their radar this time relative to other components of the employee value proposition.

My Benefi ts A good retirement savings or pension plan is the second most important element of the employee value proposition for Canadian respondents, behind only base pay and ahead of other key elements, includ- ing type of work, bonus or incentive plan, fl exible work schedule and career advancement. Overall, 62% say they are satisfi ed with their current retirement savings/pension plan.

However, nearly one-third lack confi dence in being ready for retirement:

29% believe they personally are not doing enough to fi nancially prepare for their retirement

31% believe their organization is not doing enough to help prepare them

The importance of having a pension plan dramatically increases among respondents age 45 and older, with employees 55–64 or those having 15 or more years of service placing particularly high importance on this element. And somewhat unexpectedly, having a company-provided retirement plan rivals or is more important to younger respondents than having a fl ex- ible work schedule.

My Retirement

Career development is another area where Canadian employees noted improvements in recent years, although overall scores remain relatively low. (See Exhibit 4.)

Despite these positive changes (along with career advancement ranking second in importance for employees under age 35), only 54% of respondents are confi dent they will be able to achieve their long-term career objectives in their organization, and 61% (down from 64% in 2006) believe that they have a long-term future with their organization.

Such scores do not bode well for organizations that increasingly are emphasizing “building” talent, rather than “buying” talent, in order to gain control over their talent pipelines.

Exhibit 4: Career development scores show improvement

0% 10% 20% 30% 40% 50% 60% 70% 80%

My manager plays an active role in my personal career planning 35%

43%

My organization is doing a good job of developing its people to their full potential 43%

49%

Promotions are generally given to the most quali!ed employees in my organization 35%

42%

My organization is doing a good job of retaining its most talented people 41%

48%

20102006

My Career

Canadians are more engaged when they have a positive view of their company. In fact, of the top six survey questions most correlated to employee engage- ment, four focus on respectability, commitment to quality and future success of the organization.

Slightly more than half (53%) believe that their organi- zation as a whole is well managed, down from 56% in 2006, and 71% are confi dent that their organization will be successful in the future, about the same as in 2006 (70%). The most notable decline: 57% say the level of job security offered by their organization is as good as or better than the security offered by other organiza- tions in their industry, down from 66% in 2006.

My Company

6 Canada survey summary

Canada survey summary 7

Several job-related items rank among the highest scores in the Canadian survey. Eighty-two percent of respondents say they are provided with the equip- ment or tools they need to do their job, while 81% say they can clearly see how their work contributes to the organization’s overall goals, and 80% say their job makes good use of their skills and abilities.

The most signifi cant changes from 2006 refl ect employees’ lack of what is needed to function autono- mously and do their jobs well, such as having the fl ex- ibility to provide good service to customers (down 10 points to 70%), ready access to necessary information (down 10 points to 72%) and suffi cient authority to be effective (down eight points to 71%).

“The type of work I do” is the third most important element of the employee value proposition. More than three-quarters (78%) of all Canadian employees are satisfi ed with the type of work they do, and 77% are satisfi ed with their co-workers.

My Job Two-thirds of Canadian employees say they are able to maintain a healthy balance between their work and personal lives, and nearly the same number (65%) say the amount of work they are asked to do is reasonable. In addition, 54% say their organization provides them with the opportunity to work fl exibly – something that is valued slightly more by female and younger workers.

My Life

For more information, or to see What’s Working survey fi ndings for other countries, visit www.mercer.com/insideemployeesminds.

Mercer contacts

Madeline Avedon (Toronto) +1 416 868 8843 [email protected]

France Despatie (Montréal) +1 514 841 7997 [email protected]

Sarah Fitzmaurice (Calgary) +1 403 476 3285 sarah.fi [email protected]

Brian Lindenberg (Calgary) +1 403 476 3235 [email protected]

Eleana Rodriguez (Toronto) +1 416 868 2871 [email protected]

Sharon Vanderwerff (Toronto) +1 416 868 8912 [email protected]

Mercer offi ces

Calgary +1 403 269 4945

Edmonton +1 780 483 5288

Halifax +1 902 429 7050

London +1 519 672 9310

Montréal +1 514 285 1802

Ottawa +1 613 230 9348

Québec City +1 418 658 3435

Regina +1 306 791 4558

Saskatoon +1 306 683 6950

Toronto +1 416 868 2000

Vancouver +1 604 683 6761

Winnipeg +1 204 947 0055

8 Canada survey summary

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Argentina

Australia

Austria

Belgium

Brazil

Canada

Chile

China

Colombia

Czech Republic

Denmark

Finland

France

Germany

Hong Kong

India

Indonesia

Ireland

Italy

Japan

Malaysia

Mexico

Netherlands

New Zealand

Norway

Philippines

Poland

Portugal

Saudi Arabia

Singapore

South Korea

Spain

Sweden

Switzerland

Taiwan

Thailand

Turkey

United Arab Emirates

United Kingdom

United States

Venezuela

For further information, please contact your local Mercer offi ce or the fi rm’s headquarters at:

161 Bay Street, PO Box 501 Toronto, ON M5J 2S5 +1 416 868 2000

Or visit our website at: www.mercer.ca

Copyright 2011 Mercer (Canada) Limited. All rights reserved.

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