Many Workers Still in the Dark About Company Goals

September 9, 2002 (PLANSPONSOR.com) -Corporate recovery may be tough for some companies because many workers aren't clear on how they personally contribute to their employer's overall goals, according to a survey.

Watson Wyatt’s WorkUSA 2002 survey found that the 49% of surveyed employees who understood their personal link to their company’s goals represented a dramatic 20% drop since a 2000 survey.

That’s not an inconsequential statistic, according to the consulting company. The study found that three-year total returns to shareholders (TRS) are three times higher at companies where employees comprehend how they help meet corporate objectives.

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The Watson Wyatt study also found that only 35% of employees understand how the quality of their work is tied to the size of their paycheck. Four out of 10 workers claim top performers go unrewarded.

Other survey findings included:

  • Less than half of workers surveyed – 45% – have confidence in the job being done by senior management, a drop from 50% in 2000.  Only 39% of workers say they trust the senior leaders at their firms.
  • The percentage of workers who say their companies do a good job telling them how their pay is determined declined from 56% in 2000 to 43% this year, the lowest level since 1994. However, 68% say company officials do a much better job communicating benefits information.
  • Stock option programs appear to be losing some worker support with a 7% decline to 50% in those ranking the programs favorably. Likewise, those satisfied with their current profit sharing arrangement dropped 10 points between 2000 and 2002 to 45%.

WorkUSA survey includes responses from 12,750 workers at all job levels and in all major industries.

Morningstar Manages Portfolios With New Program

August 21, 2001(PLANSPONSOR.com) - Morningstar has introduced the Morningstar Managed Portfolios program, a portfolio-management service for advisors who want to use external professionals for additional help with portfolio management and monitoring.

Morningstar Managed Portfolios is a fee-based investment-management program, which will initially feature mutual-fund portfolios, researched, engineered, and monitored by Morningstar Investment Services, as well as back-office operations and support services.

An online solution will provide complete client account management capabilities and marketing and sales support.

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Client portfolios will be continuously monitored, rebalanced and adjusted based on market performance and portfolio information.

The group has entered into an agreement with online brokerage clearing and trade-execution firm, Fleet/US Clearing, to offer the program to financial advisors, including its 275 correspondent broker-dealer clients.

The new program is scheduled for launch in the fourth quarter and separate accounts, allowing for portfolios to be created using mutual funds, will be added next year.

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