The Economic Downturn: The Employees

1
The Economic Downturn The Employees Perspective

• January 12, 2009

2
In your opinion, to what extent is your job at
risk?
n604
Note Excludes respondents who answered not
sure or did not answer the question.
Percentages may not total 100 due to rounding.
3
In your opinion, right now, to what extent is
your job at risk? (By Industry and Organization
Sector)
n604

• Differences by industry
• Construction, mining, oil gas reported a
  greater average perception of job risk than
  health care social assistance.
• Manufacturing reported a greater average
  perception of job risk than educational
  services/education, government/public
  administration, health care social assistance
  or services professional, scientific,
  technical, legal, engineering.
• Differences by organization sector
• Publicly owned for-profit reported a greater
  average perception of job risk than privately
  owned for-profit, nonprofit, government
• Privately owned for-profit reported a greater
  average perception of job risk than government
• Based on a scale where 1 not at risk and 4
  significantly at risk. Only significant
  differences are presented.

4
In your opinion, if the economy continues to
decline over the next six months, to what extent
is your job at risk? (By Industry and
Organization Sector)
n604

• Differences by industry
• Construction, mining, oil gas reported a
  greater average perception of future job risk
  than educational services/education,
  government/public administration or health care
  social assistance.
• High-tech reported a greater average perception
  of future job risk than government/public
  administration or health care social
  assistance.
• Manufacturing reported a greater average
  perception of future job risk than educational
  services/education, government/public
  administration, health care social assistance,
  services professional, scientific, technical,
  legal, engineering or other industries.
• Retail/wholesale trade reported a greater average
  perception of future job risk than
  government/public administration or health care
  social assistance.
• Differences by organization sector
• Publicly owned for-profit and privately owned
  for-profit reported greater average perceptions
  of future job risk than nonprofit or government.
• Based on a scale where 1 not at risk and 4
  significantly at risk. Only significant
  differences are presented.

5
In your opinion, to what extent do you think the
current downturn in the U.S. economy has made it
difficult for you to find a job?
n21
Note Includes only respondents who indicated
that they were actively job searching. Excludes
respondents who answered not sure or did not
answer the question. Percentages may not total
100 due to rounding.
6
What is the likelihood that you will begin a job
search (or increase the intensity of your ongoing
job search) once the economy and job market
improve?
n602
Note Excludes respondents who answered not
sure or did not answer the question.
Percentages may not total 100 due to rounding.
7
What is the likelihood that you will begin a job
search (or increase the intensity of your ongoing
job search) once the economy and job market
improve? (By Employee Level)
n604

• Differences by employee level
• Middle management and non-management reported
  greater average likelihood or beginning or
  intensifying a job search than executive level.
• Based on a scale where 1 very unlikely and 4
  very likely. Only significant differences
  are presented.

8
In the past six months, what actions have you
taken in response to the downturn in the economy?
n317
Decreased use of credit cards/cancelled credit card accounts 49
Increased use of credit cards/opened credit card accounts 21
Actively searched for higher-paying job 14
Reduced my contribution to my employer-sponsored retirement savings plan 11
Had to change mode of transportation 9
Reduced my healthcare benefits 8
Took out a loan from my bank, employer and/or a family member 8
Took a second job 8
Dropped my contribution to my employer-sponsored retirement savings plan completely 7
Took a loan out from my employer-sponsored retirement savings plan 6
Started taking classes or went back to school to improve skills 6
Controlled discretionary spending and/or reduced expenditures 5
Dropped my flexible spending account enrollment 4
Used other health and wellness benefits through my employer 4
Had to take an unscheduled absence from work 4
Increased use of flexible work arrangements 4
Dropped my healthcare benefits completely 3
Dropped my life insurance 3
Had to sell home or relocate 3
Used my employers Employee Assistance Program (EAP) benefits 1
Other 6
Note Excludes respondents who answered Not
applicable, I have not taken any actions in the
past six months or did not answer the question.
Percentages do not total 100 as multiple
response options were allowed. The response
category Controlled discretionary spending
and/or reduced expenditures was recoded from
write-in responses in the other response
category.
9
In the past six months, what actions have you
taken in response to the downturn in the economy?
(By Employee Level, Organization Staff Size and
Organization Sector)
n604

• Differences by employee level
• Middle management were more likely than
  non-management to report having dropped their
  life insurance.
• Differences by organization staff size
• large-staff-sized organizations were more likely
  than small-staff-sized organizations to report
  having reduced their contributions to their
  employer-sponsored retirement savings plan.
• Differences by organization sector
• Publicly owned for-profit were more likely than
  nonprofit to report having reduced their
  contributions to their employer-sponsored
  retirement savings plan.
• Other sectors were more likely than privately
  owned for-profit, nonprofit, or government to
  report taking other actions.
• Only significant differences are presented.

10
If your employer reduced/eliminated the following
benefits (or has already reduced/eliminated), how
much of a negative impact would this have for you?
Note Data sorted in descending order by
percentage who responded a significant negative
impact. Excludes respondents who answered not
applicable or did not answer the question.
Percentages may not total 100 due to rounding.
11
If your employer reduced/eliminated the following
benefits (or has already reduced/eliminated), how
much of a negative impact would this have for
you? (Average Ratings By Employee Level,
Organization Staff Size, Industry and
Organization Sector)

• Differences by employee level
• Middle management and non-management reported
  greater average negative impact than executive
  level for eliminating healthcare benefits
  completely.
• Middle management and non-management reported
  greater average negative impact than executive
  level for reducing retirement plan contributions.
• Non-management reported greater average negative
  impact than executive level for suspending
  retirement plan contributions.
• Differences by organization staff size
• Large-staff-sized organizations reported greater
  average negative impact than small-staff-sized
  organizations for reducing retirement plan
  contributions.
• Large-staff-sized organizations reported greater
  average negative impact than small-staff-sized
  organizations for suspending retirement plan
  contributions.
• Small-staff-sized organizations reported greater
  average negative impact than medium- or
  large-staff-sized organizations for
  reducing/eliminating flexible work arrangements.
• Small-staff-sized organizations reported greater
  average negative impact than medium-staff-sized
  organizations for reducing/eliminating payment
  for professional development and/or membership in
  professional associations.

12
If your employer reduced/eliminated the following
benefits (or has already reduced/eliminated), how
much of a negative impact would this have for
you? (Average Ratings By Employee Level,
Organization Staff Size, Industry and
Organization Sector - continued)

• Differences by industry
• Educational services/education, high-tech and
  services professional, scientific, technical,
  legal, engineering reported greater average
  negative impact than retail/wholesale trade for
  reducing healthcare benefits.
• Educational services/education reported greater
  average negative impact than government/public
  administration, retail/wholesale trade or
  services accommodation, food drinking places
  for eliminating healthcare benefits completely.
• Services professional, scientific, technical,
  legal, engineering reported greater average
  negative impact than retail/wholesale trade or
  services accommodation, food drinking places
  for eliminating healthcare benefits completely.
• Educational services/education reported greater
  average negative impact than retail/wholesale
  trade for reducing retirement plan contributions
  and suspending retirement plan contributions.
• Differences by organization sector
• Government reported greater average negative
  impact than privately owned for-profit for
  reducing healthcare benefits, eliminating
  healthcare benefits completely, reducing
  retirement plan contributions and suspending
  retirement plan contributions.
• Based on a scale where 1 no negative impact
  and 4 a significant negative impact. Only
  significant differences are presented.

13
In a difficult economy, how helpful has your
organizations HR department been in?
n242
Note Data sorted in descending order by
percentage who responded helpful. Excludes
respondents who answered not applicable/dont
know or did not answer the question.
Percentages may not total 100 due to rounding.
14
To help employees cope with the current and
possible future increases in gas prices, which of
the following benefits would you like to see your
organization offer or continue to offer?
n568
Note Excludes respondents who did not answer the
question. Percentages do not total 100 due to
multiple response options.
15
To help employees cope with the current and
possible future increases in gas prices, which of
the following benefits would you like to see your
organization offer or continue to offer? (By
Employee Level, Organization Staff Size and
Organization Sector)
n568

• Differences by employee level
• Middle management were more likely than executive
  level or non-management to report interest in
  seeing their organizations offer flexible work
  arrangement benefits.
• Executive level were more likely than
  non-management to report interest in seeing their
  organizations raise the mileage reimbursement to
  the IRS cap.
• Non-management were more likely than executive
  level to report interest in seeing their
  organizations reward employees with gas cards.
• Executive level were more likely than middle
  management or non-management to report interest
  in seeing their organizations offer other
  benefits to offset the increase in gas prices.
• Differences by organization staff size
• large-staff-sized organizations were more likely
  than small-staff-sized organizations to report
  interest in seeing their organizations allow more
  employees to take advantage of your
  organizations flexible work arrangement benefits
  (e.g., telecommuting, flex time, compressed work
  week, etc.).
• large-staff-sized organizations were more likely
  than small-staff-sized organizations to report
  interest in seeing their organizations offer IRS
  Section 132 transportation accounts (pretax
  transportation reimbursement accounts).

16
To help employees cope with the current and
possible future increases in gas prices, which of
the following benefits would you like to see your
organization offer or continue to offer? (By
Employee Level, Organization Staff Size and
Organization Sector - continued)
n568

• Differences by organization sector
• Government agencies were more likely than
  publicly owned for-profit organizations to report
  interest in seeing their organizations offer
  employees cost of living raises as a direct
  result of gas prices.
• Other sectors were more likely than publicly
  owned for-profit, privately owned for-profit,
  nonprofit or government sectors to report
  interest in seeing their organizations offer
  other benefits to offset the increase in gas
  prices.
• Only significant differences are presented.

17
The Economic Downturn The Employees Perspective
Methodology

• Sample comprised of 605 full-time or part-time
  employed United States residents randomly
  selected by an outside survey research
  organizations web-enabled employee panel, which
  was based on a random sample of the entire U.S.
  telephone population.
• Survey fielded for a two-week period ending
  January 12, 2009.