••• employment research
Employee engagement down but retention is steady
Midwest workers least-engaged
Employee engagement has dipped to its lowest point in eight years, according to data from the fifth annual Employee Engagement Trends Report from Quantum Workplace, an Omaha, Neb., human resources technology company. The report analyzed data from more than 444,000 employees at nearly 5,500 organizations.
“The data tells a clear story,” says Greg Harris, president and CEO of Quantum Workplace. “Employee sentiment is moving to the middle. More employees are on the fence. They’re generally favorable – they aren’t necessarily trying to leave – but something is holding them back from truly engaging.”
The report also found that while engagement declined, employee retention was relatively stable. The majority of retention-related items trended down with engagement. However, 76.1 percent of employees said it would take a lot to get them to leave their current position, which is a .23 percent improvement from the previous year, when employees were more engaged.
“While the drop in engagement is disconcerting, employers should be encouraged that the three most important drivers of employee engagement are identical to the previous year,” Harris says. “All three involve the commitment and strategic communication of senior leaders. That should give us a good hint about how employers should respond to these findings.”
Other highlights from the report include:
Men had higher levels of engagement than women. Almost 71 percent of men were engaged, compared to fewer than 68 percent of women.
Baby Boomers (employees 66 years old and older) were the most engaged age group, followed by the youngest Millennials (25 years old and younger).
Employee engagement was lowest in the Midwest. In fact, the Midwest (as defined by the Census Bureau’s regional designations) was nearly 10 percentage points lower in engagement than the South, which had the highest level of engagement.
The top three most-engaged industries were: management of enterprises, real estate and construction. The least-engaged industries were: public administration, manufacturing and nonprofit.
More than 20 percent of survey-takers responded with uncertainty to nine out of 37 survey items. This represents a decrease in confidence compared to the previous year when employees responded with this much uncertainty to only six survey items.
Executives declined in favorability on only 22 percent of the survey items, while hourly employees declined on 70 percent of the survey items. Executives were more favorable than hourly employees on every survey item. The complete report is available at www.quantumworkplace.com/2015trends.
••• automotive research
Who’s most connected to connected cars?
Does Gen Y hold the key(s)?
Although Generation Y has yet to make a major impact on the new car market, Nuremburg, Germany-based research company GfK believes that this age group’s interest in all things tech is going to be critical for the future of the connected car industry.
GfK recently conducted a study in six key countries – the U.S, the U.K., Germany, Brazil, Russia and China – looking at which features of connected cars (such as entertainment, safety and behavioral tracking) appeal most to certain age groups.
Across Germany, the U.K. and the U.S., the study showed that 46 percent of drivers aged up to 34 (Gen Y) find the idea of a fully integrated in-car entertainment system very or extremely appealing. This is more than double the percentage (20 percent) for drivers ages 45 and over.
The picture is even more positive in the developing car markets of Brazil, Russia and China, with in-car entertainment appealing strongly to over half (55 percent) of those aged up to 34, compared to just a third (33 percent) of those aged 45 and over.
Why should car manufacturers and in-car tech companies focus on Gen Y? The upper band of Gen Y drivers – those aged 25 to 34 – are heavier drivers than other age groups. In the developed markets surveyed, they spend an average of five hours a week driving, compared to 4.6 hours for those aged 45 and over; and in the developing markets, the figures are 6.1 hours versus 5.6 hours.
Gen Y drivers also aspire to certain driving experiences that connected cars can readily tap. In Germany, the U.K. and the U.S., drivers aged up to 34 are more likely to want to feel “proud” (20 percent, compared to 10 percent of those aged 45 and over) and “excited” (13 percent, compared to 7 percent of the older group) while driving. These aspirations are also seen in Brazil, Russia and China but more evenly across the age groups: 24 percent of both age groups want to feel “proud” while driving; and 18 percent of drivers aged up to 34 and 17 percent for those aged 45 and over want to feel “excited.”
Finally, three-quarters (75 percent) of Gen Y drivers in the developed markets surveyed – and 79 percent in the developing markets – believe that they are likely to be using their own, personal car in five years’ time.
“These factors combine to make Gen Y drivers an attractive audience for connected cars – especially as they grow closer to the age at which people tend to become new car buyers,” says Frank Härtl, global lead for automotive at GfK. “What the industry needs to do is find ways to let Gen Y drivers experience connected cars now – and that means outside of the direct purchase cycle – so that they discover that cars deliver the emotions of excitement and pride in a car that they aspire to.”
Gen Y may get this crucial experience with connected cars through alternative business models, such as pay-as-you-go car rental or hire services (e.g., Zipcar), which GfK’s study shows are particularly interesting to Gen Y drivers. Across Germany, the U.K. and the U.S., roughly one-third (34 percent) of drivers up to 34 years old say they are likely to, or definitely would, consider using a pay-as-you-go service instead of owning a car. This contrasts to just 19 percent of those aged 35 and over. And the appetite is even higher among younger drivers in Brazil (40 percent), Russia (44 percent) and China (64 percent).
“By including connected cars in the growing car-sharing services, the industry can give younger drivers an opportunity to discover this technology and fall in love with the experience it delivers. Current car-sharing services require an interaction with technology – Web site booking, apps for locating/unlocking vehicles – that Gen Y consumers already enjoy – so adding connected car technology to this experience will be a natural progression for them. And with this ‘foot in the door,’ the industry then has an engaged audience that should drive future demand,” Härtl says.
••• hispanic research
Hispanic health insurance levels up, satisfaction down
Insured? Yes. Happy? No.
In a recent study conducted by ThinkNow Research, Burbank, Calif., when Hispanics were asked if they currently had health insurance, 83 percent said yes, compared to 77 percent who said yes in November 2013. At the same time, the source of this insurance has changed considerably. While 42 percent got their insurance from their employer in 2013, that number declined to 36 percent this year. Eleven percent of Hispanics state they get their insurance through either the federal or a state ACA exchange this year, which is more than any other ethnic group. “This increase in health insurance coverage among U.S. Hispanics highlights the market potential for health insurance companies and hospital organizations looking to target this group,” says Mario X. Carrasco, ThinkNow Research partner.
The number of uninsured Hispanics dropped from 20 percent to 16 percent and while the trend has been away from their employer as a source of insurance and toward the ACA, Hispanics’ overall satisfaction with their health insurance has also shifted. When asked how satisfied they were with their current health insurance, in November 2013, 89 percent said “very satisfied” or “somewhat satisfied.” In May 2014, that dropped to 84 percent and for 2015 it fell even further to 81 percent.
Regarding how pleased people were with Obamacare, across ethnicities, results varied greatly. Of those who were very or somewhat pleased with the ACA, Hispanics came in at 47 percent, whites at 35 percent, African-Americans 60 percent and Asians 50 percent.
While acceptance and enrollment in ACA continues to grow, there are still a lot of questions surrounding it. With nearly 12 million subscribers on the books, it certainly looks as though the Affordable Care Act is working but there are still some issues to address. Unhappy customers abound, whether it’s due to the Web site, pricing or the product itself, and there needs to be an increased focus on the customer experience. Health care for all is a laudable goal but reaching that goal is the challenge.
••• financial services
Are shoppers paying attention to mobile payment?
A knowledge deficit
As the infrastructure for widespread use of in-store mobile payment locks into place across the U.S., the industries involved can accelerate adoption by better educating consumers on the performance and ease of use of mobile pay services, a survey by Verifone of U.S. consumer attitudes suggests.
Conducted online by Wakefield Research among 1,000 adults 18+, the survey took place during the busy holiday shopping season, between December 16 and December 23, 2014, timed to coincide with maximum consumer interest in retail payment options.
More than half of respondents – 53 percent – said it was important for more stores to install devices that enable consumers to pay with their smartphones, indicating wide receptivity to mobile pay options once they’re provided. The response was significantly higher among younger consumers; 64 percent of respondents aged 40 and below agreed that more stores should install devices that allow customers to use smartphones to pay.
Additionally, 84 percent of respondents said they would use their smartphones to pay for small and medium purchases, such as a cup of coffee or pair of jeans.
At the same time, the survey showed that half of consumers polled were unfamiliar with mobile technologies such as near field communication and mobile wallets. Similarly, half of respondents said they were unlikely to shop in a store because it used in-store tracking technology to provide offers on mobile devices.
“This is a classic case of new technologies needing to reach critical mass before consumers come on board,” says Joe Mach, senior vice president and general manager of vertical solutions at Verifone. “Today, in 2015, the pieces are fitting into place. What’s essential now is for the industries driving the mobile payment revolution, from finance to retail to systems providers, to educate consumers on mobile payment’s benefits and easy use.”
Other key survey data include:
Credit/debit cards remain the primary method of payment for 63 percent of all survey respondents, with 6 percent favoring alternative payment options such as PayPal and 4 percent preferring mobile wallet services.
A total of 54 percent of survey respondents are familiar with EMV technology. Of this group, 39 percent use credit or debit cards that have EMV chips as their primary or secondary payment method; among respondents under 40 years of age, 49 percent use credit or debit cards that have EMV chips as their primary or secondary payment method.
More than half of respondents – 56 percent – are willing to continue shopping at a store whose credit card information was stolen; the number of consumers who are less likely to continue shopping at such a store was 44 percent.
Among the advantages cited to using smartphones instead of traditional payment methods, speed of use ranked first (34 percent), followed by freedom from carrying a wallet (29 percent), access to mobile deals (24 percent), ease in tracking spending (23 percent) and safety of personal data (18 percent).
“The survey data illustrate a typical early adopter scenario – high awareness among younger consumers, which is the essential precursor to mass market adoption,” says Mach. “The mobile payment industry is an industry on the cusp, with so many components essential to success, such as EMV and ApplePay, coming into focus for the first time and delivering real value to the end user.”
Wakefield Research engaged survey respondents first with an e-mail invitation, followed by a 13-question online survey. Magnitude of variation is approximately 3.1 percentage points.
••• restaurant research
When servers strike back
How managers can handle angry waitstaff
As long as there are servers in restaurants, there will be disagreeable customers who give them a hard time. Are those customers always right? And how should a server respond?
A server’s response in a tense situation reflects – positively or negatively – on the server, the customer and the company, says Emily Hunter, a workplace deviance expert and assistant professor of management in Baylor University’s Hankamer School of Business. “When we think about someone else being right, it tends to make us defensive and argumentative,” Hunter says, adding that, in those situations, it’s in everyone’s best interest to keep revengeful retaliations in check. “If the server can focus on improving the customer’s experience and satisfaction, that is a win-win-win for the server, customer and company.”
Hunter co-authored a study of 438 service employees (servers, hosts/hostesses, bartenders, cashiers, etc.), which showed that the vast majority of those surveyed engaged in some sort of counterproductive workplace behavior when aggravated by a customer. Among the offenses: 79 percent made fun of a customer to someone else; 72 percent lied to a customer; 43 percent argued with a customer; 19 percent confronted a customer about a tip; and 6 percent owned up to contaminating a customer’s food.
“It doesn’t matter so much whether the customer is right or wrong,” Hunter says. “Instead of getting defensive and argumentative, servers can try to remove the question of who is right and reframe the situation, focusing on how to make this customer’s experience better.”
Employers and managers can take preemptive steps to help their employees engage with meal-time curmudgeons. Hunter offers the following tips:
- Train employees to use healthy coping strategies, such as emotional detachment from customer interactions.
- Institute an open-door policy so employees feel comfortable to seek management’s help with a customer.
- Provide frequent rest breaks to help servers reduce stress, refresh and reenergize.
- Empower employees to provide small discounts or reparations as needed.
“It is well-known in the research literature that providing employees with greater job control helps them cope with stressful demands at work,” Hunter says. “Providing servers with more control, flexibility and empowerment to handle customer issues can buffer the buildup of stress and prevent employees from retaliating at their customers.”
••• health care research
No need to shop around
For many, health care costs don’t merit price-comparing
More than 59 percent of Millennials, ages 18 to 34, report using the Internet to check the price of consumer electronics and 35 percent comparison-shop online for automobiles. But when asked about medical or dental care, the numbers plummeted to 19 percent, according to a survey from FAIR Health, a New York-based health care information nonprofit.
The FAIR Health survey results come at a time when high-deductible health plans and narrow and tiered medical networks are becoming more widespread. Consumers are being asked to bear more of the cost of their medical and dental care and become more engaged in their health care decisions. Comparison-shopping for medical and dental care is one way they can save money and become better informed.
The 2015 survey of more than 1,000 adults in the U.S. also reveals that half of consumers are surprised by their out-of-pocket medical expenses. Consumers aged 55 to 64, who may be facing increased health issues as part of the natural aging process, are most likely to say that out-of-pocket medical costs are much more than they expect, especially when compared to Millennials (ages 18 to 34) and seniors (age 65+). Millennials are relatively healthy due to their youth and seniors qualify for Medicare, which has deductibles and copays that are modest compared to many commercial plans.
Despite the Millennial generation’s reputation for digital savvy, when it comes to using technology to check the cost of medical and dental care, there was no significant difference between them and other age groups. “Since many Millennials are dealing with their own insurance for the first time, the new health care paradigm that requires more consumer engagement and cost-sharing is the only model that many of them know,” says Robin Gelburd, president, FAIR Health. “While it might seem odd that they are not using their technology skills to comparison-shop online for health care, this will likely change as they age and need more complex care and health care costs become more transparent. It also may point to the need for more education about health insurance and reimbursement models for those new to the workforce and private insurance.”
According to the FAIR Health survey, a third of all consumers said their out-of-pocket medical costs were much higher than expected. This percentage jumps to 39 percent among Baby Boomers in the 55-to-64 age group, yet only 14 percent of Boomers state that they comparison-shop for health care online. Women (35 percent) were more likely than men (28 percent) to say that their out-of-pocket medical costs were in line with their expectations.