Dive Brief:
- For two straight quarters at the end of 2015, American worker confidence sunk to its lowest levels in two years. But things are looking up in the first quarter of 2016, according to a new survey.
- The National Worker Confidence Index, a survey of U.S. employees from HRO Today Magazine and Yoh, found that confidence levels rose across all four categories in the first quarter of 2016 to 96.8 from 94.2 in the fourth quarter of 2015.
- The index tracks workers perceptions of four worker confidence drivers: likelihood of job loss, likelihood of a promotion, likelihood of a raise, and overall trust in company leadership
Dive Insight:
Andy Roane, Yoh vice president for RPO, said the largest gains in the index were seen in the three non-financial categories: job security, promotion and trust in leadership. He added that the reason expected raise potential lagged could mean workers are taking a "wait-and-see approach" before expecting wage increases after a rough fourth quarter in 2015.
While the Worker Confidence Index rebounded in the first quarter of 2016 to 96.8, it is still 3.4 points lower than during the first quarter of 2015. The Index hit a high point in the second quarter of 2015 to 102.0 but has yet to cross the 100-point threshold in any quarter since, Roane said.
What does it mean for employers? For one thing, it means the need to invest in employee wellbeing is greater than ever. Otherwise, with confidence levels high, some employees might suddenly become so-called passive job seekers – and that can negatively impact the bottom line should those workers leave.