This Week's Herman Trend Alert

HR in Normal 2.0

  The Herman Trend Alert

October 4, 2006

Employee Satisfaction at Risk

Employee attitudes and behaviors show surprising similarities from one country to another. Trends observed in one country are also seen in other countries around the world.

A recent survey of employees in the Information Technology industry in India was reported in the Mumbai Mirror. The industry is still attractive as a career, with hardware professionals and marketing professionals more satisfied than those specializing in software. In spite of the industry’s popularity, the survey results indicate that employee satisfaction is decreasing. The overall employee satisfaction index has dropped by about 11 percent as compared to last year (from 77.8 percent in 2005 to 69.2 percent this year). As a result, the attrition rate of the industry has also increased by 1 percent from 14 percent last year.

"The decline in satisfaction and retention levels can be directly attributed to the steady increase in expectation levels of the employees and the inability of the employers in managing the same, explained the manager of the research project.

The largest single factor driving job satisfaction is the opportunity for growth and career development. This finding is consistent with what we are seeing in other countries, as people seek to strengthen their skills to increase their capacity to change jobs or change careers.

The Indian survey discovered that male employees in the Information Technology industry are more satisfied with their jobs than their female counterparts. A shift from the trend that prevailed a couple of years ago, this finding is the result of a movement among women in countries around the world to become more career-oriented. They are restless and anxious for professional growth and new opportunities. In addition, the percentage of female employees in the industry is consistently on the rise (from 14.5 percent in 2004 to 23.6 percent in 2006), contributing to new tensions in the field.

Another finding: work-life balance and organizational culture are primary issues for employees surveyed. These issues go deeper than just flexibility in the workplace. Employees want more control over their schedules and more involvement in the company decisions that affect them.

Local issues have become global issues.

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