New York, October 16, 2002 -- The current crisis of confidence in corporate leadership is making skeptics of the nation's employees, according to Gallup's U.S. Employee Engagement Index.
Just over half of surveyed U.S. employees (51%) told Gallup last month that they agree with the statement that the people who run most companies are "honest and ethical." Although 61% agreed that the people who run most companies are "good leaders," only 39% said corporate leaders are worth the money they earn.
Employees also said that only 66% of company leaders are trying to do what is best for their customers, and even fewer -- only 44% -- believed corporate leaders are trying to do what is best for their employees. Of course, it is no surprise that 91% of employees believed that the people who run most companies are trying to do what is best for themselves.
Although many employees have strong doubts about those running U.S. companies, far fewer doubt the leaders running the companies in which they work. For example, 81% told Gallup that they have a "great deal" or a "moderate amount" of trust in the people who run their companies. An even higher percentage (85%) said they trust the people who run their companies' finances.
Similarly, 84% of employees said the people running their companies are honest and ethical, while 76% said they are good leaders. Sixty-nine percent even said that the people who run their companies are worth the money they earn. Employees also thought that the people who run their companies are trying to do what is best for their companies' customers (89%), stockholders (78%), and employees (67%). Not surprisingly, 84% of employees believed that the people who run their companies are also trying to do what is best for themselves.
The study finds that "actively disengaged" employees -- those who are fundamentally disconnected from their work -- are most likely to assume the worst about the people who run the companies in which they work. As a result, these employees are not only likely to do significant harm to both company productivity and the bottom line, but also to spread mistrust and doubt throughout a company's workforce.
In sharp contrast, "engaged" employees -- those who identify with and act to promote their companies' objectives -- are much more likely to trust their corporate leaders. A company that can successfully find and develop more engaged employees can minimize the danger that it will suffer unjustly from the corporate corruption fallout that currently pervades the business environment. And companies that focus on building a more engaged workforce will earn benefits in addition to increased employee trust in corporate leaders.
Given Gallup's workplace research, we are not surprised that a sizable percentage of employees have such a skeptical view of their own companies' executives. Far too many U.S. employees are actively disengaged and have a skeptical view of just about everything in and around the workplace. Gallup's latest U.S. Employee Engagement Index shows that 17% of employees are actively disengaged, while 28% are engaged.
It's not surprising that engaged employees are a lot less skeptical and are a positive force in the workplace. For example, 96% of engaged employees told Gallup that they trust the people who run their companies, compared to only 46% of actively disengaged employees. An equal percentage (96%) of engaged employees said they trust the people who run their companies' finances, while only 68% of actively disengaged employees agreed.
Similarly, 97% of engaged employees said the people running their companies are honest and ethical, while only 56% of actively disengaged employees agreed. And 85% of engaged employees said that the people running their companies are worth the money they earn; only 43% of actively disengaged employees thought this was the case.
And engaged employees thought that their corporate leaders are trying to do what is best for the companies' customers (98%), stockholders (86%), and employees (91%). Stunningly, only 23% of actively disengaged employees believed that the people who run their companies are also trying to do what is best for employees.
These results are based on telephone interviews with a randomly selected national sample of 1,002 adults, aged 18+, conducted July 29 - August 25, 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 ± four percentage points. 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.
The Gallup Management Journal is an online journal published monthly by The Gallup Organization. For more information, go to http://gmj.gallup.com.
The Gallup Organization, with world headquarters in Princeton, N.J., was founded in 1935 and has grown to become one of the world's largest management consulting firms. Its 3,000 employees serve in 40 offices, including New York, Washington, Boston, and other cities in the United States and in 20 countries around the world. Gallup's core expertise is in measuring and understanding human attitudes and behavior. Gallup applies this expertise to help companies improve business performance by leveraging their employee and customer assets. Gallup also conducts The Gallup Poll, the world's leading source of public opinion.
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