Anyone who watches the evening news or even occasionally glances at newspaper headlines knows that the unemployment rate -- which has been rising steadily since 2001 and stood at 6.2% in July -- is a huge problem in the United States today. Early last month, when Americans were asked to name the most important problem facing this country, 17% mentioned unemployment. Unemployment was the most common response after general mentions of the economy (26%).
But in many cases, Americans' general concerns about the nation's unemployment problem stop there -- that is, workers are not too worried about losing their own jobs. According to Gallup's August 2003 Work and Education survey*, roughly one in five employed American adults (19%) are concerned that they will be laid off, 15% worry about their work hours being reduced, and 17% worry their wages will be cut.
A closer analysis of the data from this poll suggests that the unemployment situation and layoffs may be affecting more than the psyches of the employees who are worried; it could also have a negative effect on the companies for which these employees work. Employees working for companies that have recently experienced layoffs are less likely than other employees to feel a strong sense of loyalty toward their companies.
Loyalty Weaker in Layoff-Prone Companies
Gallup asked American workers, "Do you have a strong sense of loyalty to the company or organization you work for, or not?" Results were broken down by employees working for companies who have laid people off in the past six months versus employees working for companies who have not laid off anyone in the past six months. Although the majority of workers in both types of companies feel loyal to their employers, workers in companies that have laid off employees in the last six months are more than twice as likely to say that they do not have a strong sense of loyalty to the company they work for (27%, versus 13% of employees in companies that have not had layoffs in the past six months).
An even larger gap appears when the question is reversed and employees are asked if they think their companies have a strong sense of loyalty to them. Nearly half (47%) of employees whose companies have experienced layoffs feel that their companies do not have a strong sense of loyalty to them, compared to just over a quarter (26%) of employees whose companies have experienced layoffs.
Bottom Line
Gallup workplace research has shown that in order for employees to be happy and productive in their jobs, they must have a strong sense of loyalty to their companies, and feel that their companies care about them in return. Although layoffs are sometimes inevitable, these data reinforce the idea that it is important to find effective ways to help remaining employees feel safe and secure after they occur.
*Results are based on telephone interviews with 1,003 national adults, aged 18 and older, conducted Aug. 4-6, 2003. For results based on the total sample of national adults, one can say with 95% confidence that the margin of sampling error is ±3 percentage points.
For results based on the sample of 588 adults employed full or part time, the maximum margin of sampling error is ±4 percentage points.
For results based on the sample of 201adults employed full or part time who work in organizations that have had layoffs in the past six months, the maximum margin of sampling error is ±8 percentage points. For results based on the sample of 372 adults employed full or part time who work in organizations that have not had layoffs in the past six months, the maximum margin of sampling error is ±5 percentage points.
