We're celebrating 10 Days of Membership! Today's Gift: $20 off your professional membership with promo 10DAYS20OFF
Training, policies and tools to help HR prevent and respond to harassment claims.
Is your employee handbook keeping up with the changing world of work? With SHRM's Employee Handbook Builder get peace of mind that your handbook is up-to-date.
Develop your HR competencies and knowledge in-person in 12 U.S. cities or virtually.
#SHRM18 will expand your perspective – on your organization, on your career, and on the way you approach HR. Join us in Chicago June 17-20, 2018
The 2010 MetLife Study of the American Dream, four in 10 Americans believed that their personal financial situation would remain the same through 2010, with lack of a financial safety net and concerns over job loss offsetting their efforts to save more, spend less and work harder.
Fielded April 14-21, 2010, among the general U.S. population, the survey revealed that two-thirds of Americans believed that the full economic recovery of the U.S. was still three or more years away.
“Americans perceive their situation to be worse off than that of the U.S. economy in general,” said Beth Hirschhorn, senior vice president for global brand and marketing services at MetLife, a financial services provider. “In fact, many Americans report they continue to dig themselves out of a deep financial hole that they have been in since before the economic downturn.”
According to the study, Americans were taking significant steps to improve their financial situation:
‘Family Net’ Emerges
A significant number of Americans were helping their family members financially—even though they may be struggling themselves:
A Rising Bar of Expectations
Though many were struggling to make ends meet, needs and expectations have continued to increase. More than half of Americans believed that the bar is constantly rising in terms of the basic necessities in life. Three in 10 felt more pressure to buy more and better material possessions.
In addition, respondents expected more from the American dream itself. Since MetLife's first
American Dream study in 2006, Americans were more likely to define the dream as:
Not one component of the dream had decreased during this time.
“Given the financial pressures that most Americans are facing, one might expect us to recalibrate somewhat, but instead, Americans are expecting even more for themselves—all while dealing with mounting stress from their daily lives,” said Hirschhorn.
Despite Efforts, Americans Close to the Financial Edge
Many Americans still found themselves close to financial ruin should they lose their job:
And, their fears of job loss were high, with more than half of Americans concerned about losing their job. In addition, the lack of a personal safety net (a “cash cushion,” retirement savings as well as auto, health, home and life insurance) appeared to contribute to the pessimism about their own personal financial recovery.
A Frayed Safety Net
Two-thirds of Americans did not feel that they had an adequate safety net, and 95 percent of those were concerned about it. Considering these financial pressures, it’s no surprise that stress was running high:
Americans who considered themselves to have an adequate personal safety net were twice as likely to feel they had achieved the American dream as those who did not.
“This result, combined with the response that 77 percent of Americans say that they are working toward creating a personal safety net, may be telling us that building a safety net is an important prerequisite for Americans to be firmly on the road to recovery—both emotionally and financially,” added Hirschhorn.
Countering a Decline in Employee Engagement
While the economy was slowly recovering in the summer of 2010, employee engagement and morale in the workplace was not, according to an analysis by consultancy Hewitt Associates.
Almost half of organizations worldwide saw a significant drop in employee engagement levels at the end of the June 2010 quarter—the largest decline Hewitt had observed in the 15 years it has been conducting employee engagement research. This highlights the growing tension between employers—many of which are struggling to stabilize their financial situation—and employees, who are showing fatigue in response to a lengthy period of stress, uncertainty and confusion brought about by the recession.
In addition, the percent of organizations with declining engagement has been steadily growing. Hewitt found that 46 percent of organizations experienced a decline in engagement levels in the quarter ending June 2010, while just 30 percent saw an improvement.
“The economic situation over the past two years has clearly strained the connection between employers and employees and the stress continues to increase,” said Ted Marusarz, leader of global engagement and culture at Hewitt. “Organizations are struggling to improve employee engagement, but they need to stay focused. The extra effort companies put forth now will make a difference in how successful they are at boosting employee morale and retaining top talent as the economy stabilizes and employee opportunities open up.”
Steps to Improve Employee Engagement
According to Marusarz, key factors that differentiate organizations with improved engagement levels include:
Stephen Miller is an online editor/manager for SHRM.
Financial Stress in the Workplace, SHRM Multimedia, 2008
• Sign up for SHRM’s free
Compensation & Benefits e-newsletter
You have successfully saved this page as a bookmark.
Please confirm that you want to proceed with deleting bookmark.
You have successfully removed bookmark.
Please log in as a SHRM member before saving bookmarks.
Your session has expired. Please log in again before saving bookmarks.
Please purchase a SHRM membership before saving bookmarks.
An error has occurred
Recommended for you
Five key facts about High-energy visible (HEV) a.k.a. “blue light”
Become a SHRM Member
SHRM’s HR Vendor Directory contains over 3,200 companies