Yoh’s worker confidence index falls in the first quarter

May 25, 2023

Worker confidence took a dip earlier in the year, according to the US Worker Confidence Index published by staffing provider Yoh, a division of Day & Zimmermann, and HRO today magazine.

The index fell 3.5 points to a reading of 110.9 in the first quarter from the fourth quarter after three straight quarters of gains.

“It may be easy to think that the declines seen in the Worker Confidence Index this quarter after a prolonged period of growth are cause for alarm, but it may actually indicate otherwise,” said Emmett McGrath, president of Yoh.

However, McGrath noted that the index continues to climb year on year.

“Despite non-linear growth, less-than-ideal economic conditions, and widespread layoffs in certain sectors, worker confidence continues to find solid footing. This should be a relief for both employers and employees.”

The Yoh Worker Confidence Index is based on a survey of workers and measures the perceptions of full-time workers on four key aspects of worker confidence: perceived job security, perceived probability of a promotion, perceived probability of a raise and general confidence in the company’s leadership.

The perceived job security portion of the index increased to a reading of 95.9 in the first quarter from 88.0 in the fourth quarter. “Confidence in leadership” also rose slightly to a reading of 107.5 in the first quarter from 105.8 in the first.

On the other hand, the rates of perceived probability of a raise and perceived probability of a promotion decreased. The perceived probability index level of a raise fell to 115.9 in the first quarter from 128.3 in the fourth, while the perceived probability of a promotion fell to 124.2 from 135.5.

“Many companies relied on raises and promotion offers during 2022 to counter inflation and staff shortages. Therefore, decreases in those individual rates could be a sign that employees have recently received one or both of these incentives and do not expect to receive anything else for some time,” McGrath said.

“Regardless, employees feel much more secure in their current roles than in past quarters, and that should be celebrated. Barring big changes to the economy in the coming weeks, confidence among the US workforce appears poised for a period of relative stability and incremental growth.”