PHILADELPHIA, PA — In a remarkable turnaround after nine months of decline, the U.S. Worker Confidence Index™ (WCI) not only swung an upward curve in the last quarter of 2023 but also hit record highs in its near decade long surveillance. After briefly dipping, the WCI surged 8.1 points to 114.9 at the close of 2023, surpassing its previous peak of 114.4 noted in Q4 2022.
The survey, undertaken by HRO Today magazine and Yoh, an international talent and outsourcing firm, monitors American full-time employees’ perceptions of job security, chances of promotion, and potential salary increments, along with trust in company leadership.
In Q4 2023, three of the four indicators making up the WCI – the likelihood of receiving a raise or a promotion, and faith in company leadership – all registered ascents. The Perceived Likelihood of a Raise Index clocked the greatest surge, rocketing 15.1 points up from 116.8 to 131.9. Despite the Job Security Index logging a decline, an expected Q4 seasonal trend, it is anticipated to recover in the upcoming quarters.
Emmett McGrath, President of Yoh, emphasized the value of investing in talent acquisition during periods of worker satisfaction. “The U.S. talent market continues to defy expectations,” said McGrath. “That’s good news for employees and employers alike.”
The Q4 2023 WCI revealed job security has diminished among different categories, including men, prime-age workers, and both high and low-income groups. However, it increased for mid-level earners and older workers while remaining stable for women.
In a hopeful note, over a quarter of respondents (25.5%) were optimistic about receiving a promotion from their current employer within the next year. Confidence was particularly high among the 25-34 age group, with nearly half (43.5%) anticipating a promotion.
Likewise, optimism about receiving a pay raise surged in Q4, with almost one-third of all workers expecting an increment of at least 3%. Workers aged 35-44 felt the highest likelihood, with 47.6% anticipating an increment.
Additionally, after a steep descent in the previous quarter, employees’ faith in their company’s leadership rebounded significantly. Nearly half of the workers surveyed (47.5%) trusted their company’s leadership to make sound decisions for the company and its employees.
This upward movement across the indices, culminated in the WCI reaching its highest since inception in 2014, reverses the downturn spotted in the initial three-quarters of 2023.
With the worker sentiment now swinging upward and reaching new heights, businesses have a unique opportunity to secure and develop talent, a move that was sorely needed after a year marked by unease and declining confidence.
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