Employees in the U.S. seem to overwhelmingly share a “it won’t happen to me” attitude when it comes to losing jobs. Glassdoor.com has released results from a survey, which found that 4 out of 5 employees have no concerns about being laid off in the next six months.
GlassDoor breaks it down into two categories – companies that have reported upcoming layoffs, and companies that have not:
Employees who work for companies that have reported layoffs versus those that haven’t are more likely to:
Total
n=1,331
Employees from companies that have communicated layoffs within the past 6 months
n=327
Employees from companies who have not communicated layoffs within the past six months
n=1004
Have concerns about being laid off in next six months 21% 45% 12% Have concerns coworkers will be laid off in next six months 42% 87% 26% Be working harder to avoid a lay off given the current state of the economy 52% 69% 46% Not expect a pay raise in next 12 months 40% 49% 36% Not expect a bonus 25% 32% 22% To take on more projects and responsibilities to avoid a lay off 74% 84% 70%
“This data reinforces the need for employers to be more open and transparent with their plans for the company and people. It is human nature to always think that something bad will happen to someone else but never to me. Employees often think them personally — or their company — will be insulated from layoffs and that someone else will lose their job, not them, often causing shock and denial when notified their job has been eliminated,” says Rusty Rueff, co-author of Talent Force: A New Manifesto for the Human Side of Business and former HR executive at Electronic Arts and Pepsico, who is also a member of Glassdoor’s board of directors.
“Fourth quarter layoffs may just be a prelude of what’s to come and both employers and talent should take time now to communicate and plan short-term options and contingencies. In today’s environment there’s no reason to continue to have people surprised and not prepared for the worst,” adds Rueff.
Employees Expect Raises and Bonuses
Some other interesting stats revealed by the survey include:
– Even amid widespread company cost-cutting, 40% of employees say they expect a pay raise or cost of living increase in the next 12 months while 40% do not expect a raise and 20% say they are unsure.
– Of those eligible for an annual bonus, 57% expect a bonus and 40% do not.
Of those who expect a bonus:
– 41% expect it to be about the same as last bonus
– 28% expect it to be less than last bonus
– 15% expect it to be more than last bonus
– 16% are unsure of the amount
“Salary and total compensation are very important to employees so we aren’t surprised more than half of employees are unwilling to take pay cuts to avoid a lay off. We are surprised, however, that so many employees say they are not personally concerned about layoffs, particularly given the frequency we’re seeing people discuss layoffs in their Glassdoor reviews over the past few months,” said Robert Hohman, co-founder and CEO of Glassdoor.com, a career and workplace community bringing greater transparency to salaries and workplaces.
So if employees are so confident, what are they willing to sacrifice in order to keep their jobs?
– 74% would take on more projects or responsibility
– 60% would increase the amount of hours worked
– 46% would give up perks like commuter subsidies, on-site cafeteria, child care, dry cleaner, gym access
– 32% would accept a reduction in health and dental benefits coverage
– 30% would accept a cut in salary or wages
– 24% would forfeit paid time off or vacation
– 24% would take an unpaid leave or sabbatical
The good news here is that employees are willing to work harder and stay motivated so that they can keep their jobs. This should theoretically lead to more productivity, which should make business owners happy – a silver lining in the dark cloud of the economy.
