United Kingdom , London

Over half of Britain’s employees are unhappy at work, with over a third of them seriously considering leaving their jobs, according to new research by Mercer that reveals an increasing level of employee disengagement that should be of concern to employers. The data is based on Mercer’s “What’s Working TM” research amongst 2,400 UK workers in over 1,000 private sector organisations – part of a global survey of nearly 30,000 employees in 17 countries.

The feedback from employees also shows a marked decline in commitment and job satisfaction since 2006 when a similar survey was conducted. Only 61% currently say their work gives them a feeling of personal accomplishment compared to 70% four years ago, while commitment to their company has declined from 59% to 52%. Just 55% feel proud to work for their organisation compared to 60% in 2006.

Chris Johnson, UK Head of Human Capital at Mercer, commented: “During the recession, many employees have faced a mix of pay freezes, training and benefit cuts, and limited promotion opportunities – and have often absorbed extra workloads due to redundancy programmes. Many are still feeling vulnerable and generally unhappy with their lot.”

The research shows that 36% of UK workers are now seriously considering leaving their jobs, including 40% of those in the age group 25 – 34 and 36% of those aged 35 - 45. Additionally, 41% of managers are seriously considering a move, including 53% of senior managers, compared to 33% of non-managers.

“Employers should be concerned at the potential loss of many key employees with the skills and experience that they have invested in, and who are needed to drive their company recovery plans,” Mr Johnson said.

“Those who are engaged and who feel better about their employer and themselves are the people who can drive their employer's success as the economy recovers. The problem is that these are the employees who are wanting to move.”

The good news for employers is that a significant proportion of employees (64% of the total number) are not seriously considering a move and amongst this group, 41% are committed to their organisation. The remainder (23%) are feeling indifferent about staying or moving on and, to make matters worse, this group scores poorly on the conventional measures of engagement including loyalty, commitment and motivation.

In conclusion, Mercer has observed three broad groups of employees emerging from the results of the research:

• Assertives who feel positive about their employer, but who are making decisions in their own self-interest.  These people provide discretionary effort and go the extra mile for their employer and for themselves.

• Passives who feel indifferent and possibly like victims; these people may struggle to go the extra mile either for their employer or for themselves.

• Good citizens who feel good about their employer and are loyal, irrespective of how bad things have been. Their self interest is low.

Amongst the “passive” employee group, only 46% get a sense of personal accomplishment from their work while even fewer (37%) say they are proud to work for their organisation. Just 47% say that, considering everything, they are satisfied with their job. In comparison, those seriously looking to move score 54% for personal accomplishment, 48% for pride in their organisation and 48% for satisfaction.

“It’s perhaps surprising that those employees planning a job move score more positively on the engagement scale than those who are not. It seems that this second ‘passive’ group is unable or unwilling to move on – probably due to a resignation over lack of opportunities or insecurity in the job market and a general lethargy in the workplace.”

Disengagement amongst the 59% of the UK workforce is demonstrated in the low response scores on underlying factors including:

• 38% feel there are sufficient opportunities for growth
• 41% feel they are paid fairly
• 42% believe they are recognised for doing a good job
• 50% feel they are treated fairly at work
• 54% say they have a good work-life balance

Mr Johnson added: “Overall, what we’re seeing is a general malaise in the workplace. This apathy and disengagement at work can undermine business performance – especially in a post-recession period when companies need commitment from their workforce and energy to drive business growth.”

Mercer believes that re-engaging employees will require a multi-faceted approach. Employers need to understand the dynamics of disengagement in their own organisations and address the different expectations, work styles and financial considerations across the various employee groups. A one-size fits all approach is unlikely to achieve the necessary impact for improving morale, commitment and performance.

It believes that re-engaging employees will require fresh thinking.  After a sustained prosperous period up to the recession, employees’ perceptions have been affected by the recession and continued economic unease.

“Our research indicates that many employees are now taking a much more self-interested view. Their expectations of employers are rising, and where those expectations are not met, they are taking actions in their own interest,” said Dr Patrick Gilbert, Mercer’s Head of Employee Research for Europe, Middle East and Africa. “Employers cannot afford to be complacent. They need to make sure they know what is on their employees’ minds so they can focus their internal investments on areas with the greatest impact on employee engagement.”

Mercer recommends that employers take an objective view of their employee offering and review their package of rewards, career development and learning opportunities. But they should also recognise it’s important to look at the qualitative aspects of work: fairness, respect and recognition, work-life balance and effective communication. “Pay is important to get right, but engagement is generally a reflection of an organisation’s broader culture and the way it values and invests in its employees,” Dr Gilbert said.

“In recent years, employers have become more performance-focused while reducing their investments in the workforce. As a result, employees have experienced few benefits and many see themselves as the continued victims of the recession. Our What’s Working research is a wake-up call for employers; it shows that employees are not getting the right answers to the question, ‘what’s in it for me?’” he added.

Notes for editors
A chart with survey highlights is appended below.

Highlights from Mercer UK's "What's Working" Survey