The Crisis of Confidence Hasn't Reached the Workplace

GALLUP NEWS SERVICE

There is an obvious crisis of confidence on Wall Street as one major U.S. company after another seemingly implodes. But, according to the June Gallup/UBS Employee Outlook Index survey, the overwhelming majority of American employees continue to trust in the people who run the companies where they work.

In June, nine out of 10 employees working at for-profit companies in the private sector say they have a great deal or a moderate amount of trust in the executives running their companies -- essentially the same percentage as in April. Nine out of 10 employees also say they have a great deal or a moderate amount of trust in the people who handle the finances and accounting at their companies -- virtually the same percentage that took this position in April.

How much would you say you trust the people who run your company -- a great deal, a moderate amount, not much, or not at all?

 

	Great deal	Moderate amount	Not much	Not at all	No opinion
2002 Jun 17-19	46%	43	8	3	--
2002 Apr	49%	37	9	4	1

How much would you say you trust the people who handle the finances/accounting at your company -- a great deal, a moderate amount, not much, or not at all?

 

	Great deal	Moderate amount	Not much	Not at all	No opinion
2002 Jun 17-19	49%	40	8	2	1
2002 Apr	51%	36	9	3	1

Employees Do Not Rate All Executives Highly

While the June survey continues to show that an overwhelming number of employees think highly of those running the companies where they work, they do not feel the same way about corporate executives running other companies. When asked their opinion of corporate executives, 87% say that the people who run the company where they work are honest and ethical. Only 54% of American employees surveyed said that they believe most corporate executives to be honest and ethical.

Similarly, 82% of employees say that the people who run the companies where they work are good leaders. Only 67% believe that most corporate executives are good leaders. And 73% of employees say that the people who run the companies where they work are "worth the money they earn," while only 41% believe that most corporate executives are.

 

Employee Outlook Index Survey June 2002	Yes, applies in my company	Yes, applies in other companies
Honest and ethical	87%	54
Good leaders	82%	67
Worth the money they earn	73%	41

Good News for Customers, Not Stockholders and Employees

The good news is that nine out of 10 employees say that the people running the company where they work are trying to do what is best for their customers. And two out of three employees say this is the case for the corporate executives running other companies. This is not surprising given the increased focus of many companies on customer satisfaction and loyalty during the past couple of years.

What is surprising is that only two out of three employees say that the leaders of both the company where they work and those at other companies are trying to do what is best for their stockholders. Given the focus on Wall Street, quarterly earnings, and stock prices, the general perception has been that, if anything, company executives have been too focused on the short-term interests of their stockholders. Of course, many employees are stockholders today, and this employee perception may relate to the sharp deterioration in the market value of many stocks during the first half of 2002.

Maybe not as surprising, but certainly as troublesome, is the fact that only about two out of three employees say that the people running the company where they work are trying to do what is best for their employees. And, only four out of 10 employees say this is the case with the corporate executives running other companies. In part, this may reflect the efforts -- such as cost-cutting and downsizing -- companies are making to remain profitable in the difficult economic environment of 2002. Still, this degree of cynicism among employees does not seem to bode well for long-term productivity.

 

Employee Outlook Index Survey June 2002	Yes, applies in my company	Yes, applies in other companies
Trying to do what is best for the company's customers	91%	68
Trying to do what is best for the company's employees	69%	46
Trying to do what is best for the company's stockholders	65%	67

The Employee Outlook Index Declines

Although most employees continue to trust their corporate leaders, they are becoming somewhat less confident about the business outlook for their companies. The Employee Outlook Index -- a joint venture of Gallup and UBS -- decreased for the second straight month in June, reaching 66 -- down from 69 in May and 72 in April. The decline in the Employee Outlook Index in June is largely due to the drop in its job security index component from 53 in May to 45 in June.

 

 

Gallup/UBS Employee Outlook Index
	Employee Outlook Index		Present Company Conditions Index	Future Company Conditions Index	Job Security Index
2002 Jun	66%		83	69	45
2002 May	69%		84	70	53
2002 Apr	72%		89	74	52

 

Survey Methods

Results for the Employee Outlook Index are based on telephone interviews with a randomly selected national sample of 659 adults, 18 years and older, conducted June 3-6, 2002, and June 17-19, 2002. For results based on this sample, one can say with 95% confidence that the maximum error attributable to sampling and other random effects is ±4%. Results for the questions involving employee trust in their corporate leaders are based on 318 interviews conducted June 17-19, 2002. For results based on this sample, one can say with 95% confidence that the maximum error attributable to sampling and other random effects is ±6%. In addition to sampling error, question wording and practical difficulties in conducting surveys can introduce error or bias into the findings of public opinion polls.