Whether you are the person doing the hiring or the one being interviewed, the giant elephant in the interview room is often around compensation.
Organizations often have the difficult task of budgeting for the talent they need now as well as forecasting who they might need later down the road. Not to mention the folks who leave suddenly and without warning. Likewise, employees often equate the level at which their company values them based on how well they are compensated for the work they perform. Employees who aren't happy choose to actively or passively pursue other means of employment; often taking the skills they've gained from the starting employer and taking them to the next one.
This complex but all too familiar scenario begs the question: do employers place enough emphasis on ensuring employees are happy? And at the end of the day, is money the only factor contributing to employee satisfaction? The latest results released by HRO Today Magazine's Worker Confidence Index will have you seriously reconsidering how you answer those questions moving forward.
consumer spending & Job Security
Going off of the notion that a happy employee is a well-paid one, you could argue happy employees contribute to a healthy economy. In a recent Wharton Business Radio podcast, VP of Recruitment Process Outsourcing for Yoh, Andy Roane was invited to address the study and how it is attempting to unravel the relationship between employee sentiment and consumer spending.
Spearheaded by HRO Today Magazine in partnership with Yoh, the intent of the study is simple. Can employee happiness be quantified and if so, does this correlate with widespread patterns in consumer spending?
WORKER CONFIDENCE INDEX
During the interview with podcast host and Wharton Professor Peter Cappelli, Roane provides a number of unique insights into the role perceived job security has not only on the work environment, but on larger consumer indices. After all, when people are more secure in the fact they will have a job long-term and are happy with their compensation level, they tend to make bigger purchases or spend more often.
The reoccurring study, which started in the last quarter of 2014, has been tabulated, tracked and analyzed quarterly. Survey respondents are asked questions surrounding four key pillars:
- Likelihood of a promotion in the next 12 months
- Likelihood of a 3% or higher raise
- Overall trust in company leadership
- Involuntarily job loss in the next 12 months
For additional information on the state of hiring, take a listen to the full podcast;including the unspoken strategy many companies are using to tackle the issue of compensation and rentention.