Canadian Employees Feeling Anxious and Less Motivated About Job

New Ipsos Reid Study Indicates That 22% of the Canadian Workforce are Concerned with Employment Management Now Faced with Challenge of How to Re-engage Workforce

10 June 2009

Economy

Toronto, ON - Signs of an economic recovery may be registering across the country, yet many Canadian employees remain concerned about losing their jobs. According to recent findings from Ipsos Reid's Build a Better Workplace syndicated study, 22% of Canadian employees are very much concerned or somewhat concerned when asked "how concerned are you that you may lose your job or be laid off during 2009 because of the financial and economic crisis?." This new figure measures employee concerns in the final days of May and is slightly down from the previous study in January when the national score was 24%.

"Although employees tend to get accustomed to the turbulent environment in sectors deeply affected by the crisis, their level of anxiety is high," says J.B. Aloy, Ipsos' resident expert on employee management and engagement. "This is especially true in organizations where layoffs have been announced. In these organizations, 44% are concerned, down slightly when compared to January's study, but still indicating a high level of anxiety."

Regional differences from the January study to the study conducted in late May remain significant, however the gap in anxiety levels between Western Canada and Ontario appears to be to be diminishing (from 9 points to 5 points). Job security anxiety is limited in Quebec compared to the national average (14% vs. 22%).

One of the most striking elements uncovered in the latest study results is the shift regarding the most anxious categories of employees:

concerns in the manufacturing sector are lower than they were in January (30% vs. 40%)
concerns in business services / communication sector have increased and they are now on a par with the manufacturing sector.

For the first time, sales forces express more anxiety than staff working in administrative support, managerial or technical functions. Almost one in three sales employees is concerned about job security, 12% being "very much concerned."

All this leaves management wondering what to do in order to re-engage the workforce. Is it possible to assess the impact of this anxiety? Are anxious employees less satisfied with their professional situation? Are they less motivated? "The answer to all three questions is `Yes'," adds Aloy. "Concerns about one's professional future are clearly impacting staff motivation."

To illustrate this, respondents were asked about the reasons why their motivation is decreasing. Several employees explained: "The atmosphere of looming cutbacks combined with an uncommunicative senior management does little to inspire team spirit amongst the ranks," says one survey respondent. Another stated: "After having 50% of staff laid-off there remains a combination of survivor's guilt and the nagging question `Am I next?'"

In addition to layoffs, employees report that a number of measures have been implemented by employers in response to the crisis:

Hiring freeze: 27%

Salary freeze: 26%

Budget cuts for travel: 26%

Benefits cuts: 10%

Salary reductions: 8%

Mandatory vacations: 8%

4-day workweeks: 8%

Although 43% of employees consider internal communications about these policies rather effective, the increased pressure at work is mentioned by many and the impact on their motivation levels is significant. Again, comments from respondents to illustrate this: "Staff left must do their work, take on learning tasks normally carried out by assistants 'on the fly' and find time to train and be trained on new technologies. It does not seem that much thought of the overall impact was considered," says one respondent.

"Why should I keep giving my all when they keep taking away? Salary has been cut by 15%, flex day has been eliminated, work day has been extended. And...not even a sorry...just `this is what is happening, like it or leave'," adds another.

Even in organizations where a salary freeze is not implemented, employees indicate that base salary increases will be limited in the coming fiscal year (i.e. increase of less than 3% for 83% of employees informed about their salary evolution).

The results were obtained from the Better Workplace Syndicated Study, an online poll of 1,128 employees in Canada, completed between May 22 and May 29, 2009.

For more information about this news release, please contact:
JB Aloy
Employee Research Expert
Ipsos Reid
(416) 572-4494
[email protected]

About Ipsos' Better Workplace Products

The Better Workplace Syndicated Study is a quarterly online study of employees across Canada used to identify and measure key trends in employee motivation and opinions. The study provides insights regarding staff reactions to the downturn as well as to policies implemented by employers. The focus is placed on compensation in the June report.

In addition, as organizations re-invent themselves, many have found it helpful to obtain quick input and pulse checks from their own staff. Ipsos offers the Better Workplace Panel, a research tool specifically designed for human resource professionals. This customized survey tool allows clients to conduct short, cost-effective surveys four or six times per year with rapid turn-around on results.

Results from the most recent syndicated study and information on Ipsos' customized offerings can be found at www.ipsos.ca/loyalty/erm or by contacting JB Aloy by e-mail at [email protected] or by phone at (416) 324-4494.

About Ipsos Reid

Ipsos Reid is Canada's market intelligence leader, the country's leading provider of public opinion research, and research partner for loyalty and forecasting and modelling insights. With operations in eight cities, Ipsos Reid employs more than 600 research professionals and support staff in Canada. The company has the biggest network of telephone call centres in the country, as well as the largest pre-recruited household and online panels. Ipsos Reid's marketing research and public affairs practices offer the premier suite of research vehicles in Canada, all of which provide clients with actionable and relevant information. Staffed with seasoned research consultants with extensive industry-specific backgrounds, Ipsos Reid offers syndicated information or custom solutions across key sectors of the Canadian economy, including consumer packaged goods, financial services, automotive, retail, health and technology & telecommunications. Ipsos Reid is an Ipsos company, a leading global survey-based market research group.

To learn more, visit www.ipsos.ca.

About Ipsos

Ipsos is a leading global survey-based market research company, owned and managed by research professionals. Ipsos helps interpret, simulate, and anticipate the needs and responses of consumers, customers, and citizens around the world.

Member companies assess market potential and interpret market trends. They develop and build brands. They help clients build long-term relationships with their customers. They test advertising and study audience responses to various media. They measure public opinion around the globe.

Ipsos member companies offer expertise in advertising, customer loyalty, marketing, media, and public affairs research, as well as forecasting, modeling, and consulting. Ipsos has a full line of custom, syndicated, omnibus, panel, and online research products and services, guided by industry experts and bolstered by advanced analytics and methodologies. The company was founded in 1975 and has been publicly traded since 1999.

In 2008, Ipsos generated global revenues of e979.3 million ($1.34 billion U.S.).