Who can create jobs in america? The American Worker Perspective on U.S. Job Creation
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1 Who can create jobs in america? The American Worker Perspective on U.S. Job Creation
2 Who can create jobs in america? The perspectives of a CFO master class The American Worker Perspective on U.S. Job Creation by Michael O Callaghan and Chris Campbell July 2012 The survey addressed worker attitudes in four areas of job creation: U.S. government s influence on job creation Government s efforts to directly create jobs CEOs motivation to create jobs in the United States Strength of U.S. economy Korn/Ferry International surveyed more than 300 full-time American workers, years old with individual annual incomes of $50,000+, on the topic of job creation in the United States. Summary The survey revealed that American workers have more confidence in the President of the United States (regardless of who it is at any moment in time) to create jobs than it has in the President, Congress and the Fed working together to control the economy. This belief in the President s ability to act alone may be the result of a perception that the responsible parties in the federal government will be unable to work together to solve the problem due to the highly partisan atmosphere in Washington. It could also reflect the respect that historically many Americans have for the Office of the Presidency (regardless of which individual occupies it at the moment) and our indefatigable optimism as a nation even in hard times. The survey also revealed that American workers do not believe that CEOs of U.S.-based global companies are working hard to hire American workers or that they are motivated to do so. Respondents are split on whether tax cuts to U.S. businesses would make a difference. 1
3 This belief suggests that American workers are realistic about the role of CEOs and business when it comes to fixing our nation s problems, including our current jobs crisis. Korn/Ferry s perspective: CEOs are borderless. Their first obligation is to the company s shareholders and so they will make investments including hiring workers in geographies where the company has the greatest opportunities and where it needs them most. This view of CEOs may dovetail with survey findings that American workers believe that China is the best economy in the world right now with the United States in a distant tie for second place with Germany. In this case, perception is absolutely aligned with reality. Based on Q economic data for 196 countries from Trading Economics, China s year over year GDP growth was 8.1%. U.S. year over year GDP growth was 2.0% and Germany s was 1.7%. Bottom line, are American workers looking for leadership in solving our nation s job crisis? Survey says: Yes. Key Findings American workers believe that the President of the United States has a big impact on job creation; they have less confidence in the ability of the President, Congress and the Fed to implement policies to control the economy. More than 70% of survey respondents believe the President (regardless of who holds the position) can create jobs. A smaller majority (59%) think the U.S. government more generally has control over job creation. But fewer (55%) think the President, Congress and the Fed combined can implement policies to control the economy. American workers are split on whether U.S.-based businesses would use tax cuts to hire more Americans. 52% of survey respondents said businesses would use tax cuts to hire more Americans, while 48% responded that they would not a statistical tie. 2
4 By a small majority, American workers do not believe the United States has invested in technologies that create jobs. 55% of survey respondents who said the United States has not invested in technologies 34% believe the United States has invested in technologies that actually eliminate jobs. American workers believe that spending government money on infrastructure projects is a good way to create jobs. Yet they do not believe it is the best area for job growth. 64% of survey respondents agreed that a good way for the government to create jobs is to spend money on infrastructure projects. However, when asked which industries had the most potential to grow jobs, infrastructure was in the top 3 responses, but did not top the list. 28% Sustainable energy solutions 23% Information technology 22% Infrastructure for the country, (roads, the utility GRID system) American workers do not believe that U.S. companies will necessarily hire American workers. Survey respondents overwhelmingly (more than 70%) believe that CEOs of U.S.-based global companies are neither working hard nor are they motivated to hire American workers. American workers believe the U.S. economy is a distant second to China, tied with Germany. When asked which economy is the strongest in the world right now, 32% of survey respondents said China, followed by 18% for Germany and 18% for the United States. 3
5 Survey Questions & Results A. U.S. Government s Influence on Job Creation Nearly two thirds of American workers believe that the President has a big impact on job creation. Yet fewer (55%) think the President, Congress and Fed can implement policies to control the economy. And 59% think that the U.S. government generally has control over job creation. Figure 1 Do you think the President of the United States has a big impact on job creation? 37% No 63% Yes Respondents are split (52% yes, 48% no) on whether businesses would use tax cuts to hire more Americans. More than half of respondents (55%) do not think the United States has invested in technologies that create jobs. [This question is referring to anyone in the office, not any particular person.] Figure 2 Do you think the President, Congress and the Federal Reserve Bank can implement policies that control the U.S. economy? 45% No 55% Yes Figure 3 When you see the U.S. jobs report every month on employment, do you think the United States government has any control over it (job creation)? 41% No 59% Yes 4
6 Figure 4 Do you think tax cuts to businesses would be used to hire more people? 48% No 52% Yes Figure 5 Do you think that the U.S. has invested in technologies that create jobs? 45% Yes 55% No 5
7 B. Government s Efforts to Directly Create Jobs Sixty-four percent of respondents think that government spending on infrastructure is a good way to create jobs. Yet, respondents do not find it to be the best area for job growth. Top 3 areas are: 28% Sustainable energy solutions 23% Information technology 22% Infrastructure for the country, (roads, the utility GRID system) Figure 6 Do you think government spending on infrastructure projects is a good way for the government to positively impact or grow jobs? 36% No 64% Yes Figure 7 Which of these technologies is the one best capital investment for U.S. job creation? 28% Sustainable energy solutions 23% Information technology 22% Infrastructure for the country, (roads, the utility GRID system) 13% New inventions / manufactured products 12% Manufacturing methods 6
8 C. U.S. CEOs American workers overwhelmingly (more than 70%) believe that CEOs of U.S. based global companies are neither working hard nor are they motivated to hire American Workers. Figure 8 Do you think CEOs of U.S.-based multinational companies are working hard to hire American workers? 71% No 29% Yes Figure 9 Do you think CEOs of U.S.-based companies that are global are motivated to hire Americans? 73% No 27% Yes 7
9 D. U.S. Economy American workers believe the U.S. economy is a distant second to China, tied with Germany. Figure 10 Which country do you think has the best (strongest) economy right now? 32% China 18% Germany 18% United States 14% Other 10% Japan 8% Brazil * The Korn/Ferry survey was conducted by Survey Sampling International, the world s leading provider of sampling, data collection and data analytic solutions for survey research The Korn/Ferry Institute
10 About the Korn/Ferry Institute The Korn/Ferry Institute generates forwardthinking research and viewpoints that illuminate how talent advances business strategy. Since its founding in 2008, the institute has published scores of articles, studies and books that explore global best practices in organizational leadership and human capital development. About Korn/Ferry International Korn/Ferry International is a premier global provider of talent management solutions, with a presence throughout the Americas, Asia Pacific, Europe, the Middle East and Africa. The firm delivers services and solutions that help clients cultivate greatness through the attraction, engagement, development and retention of their talent. Visit for more information on Korn/Ferry International, and for thought leadership, intellectual property and research. Our locations worldwide The Americas Atlanta Bogota Boston Buenos Aires Calgary Caracas Chicago Dallas Durango Houston Irvine Lima Los Angeles Medellin Mexico City Miami Minneapolis Monterrey Montreal New York Northern Virginia Philadelphia Princeton Quito Rio de Janeiro San Francisco Santiago Sao Paulo Stamford Toronto Vancouver Washington, DC Asia-Pacific Auckland Bangalore Beijing Brisbane Guangzhou Hong Kong Jakarta Kuala Lumpur Melbourne Mumbai New Delhi Seoul Shanghai Singapore Sydney Taipei Tokyo Wellington Europe, Middle East & Africa Amsterdam Athens Barcelona Brussels Budapest Casablanca Copenhagen Dubai Frankfurt Geneva Helsinki Istanbul Kiev London Lyon Madrid Milan Moscow Oslo Paris Rome Stockholm Vienna Warsaw Zurich 1900 Avenue of the Stars, Suite 2600 Los Angeles, California Tel: Fax: The Korn/Ferry Institute
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