The Difference in Engagement and Satisfaction between Unionized and
Non-Unionized Employees

Imagine an organization where Employee Engagement, satisfaction, and morale have reached an all-time low. Senior management seems unwilling to respond to the employees' need for adequate supplies, decent salary and benefits packages, or safe and secure physical working conditions. Eventually, in an attempt to increase satisfaction, the employees decide to form a union. The union immediately gets to work on the more pressing issues, and the organization sees an increase in satisfaction and Engagement levels. However, despite having a union in place, the organization's Employee Engagement and satisfaction levels never reach the levels of their competitors whose employees have never needed to form a union.

This scenario is actually more familiar than one might think. Employees often join unions in an attempt to increase their satisfaction, but never hit the same satisfaction levels as their non-unionized peers. This phenomenon can be attributed to several factors.

1. Complicated Communication Routes – Communication is one of HR Solutions' Power Dimensions. Our power dimensions are the three dimensions that all of our Best-in-Class^® organizations score well, and include Strategy/Mission, Concern for Customer Service, and as previously stated, Communication. Good communication between management and employees is key to building both Employee Engagement and satisfaction. However, the introduction of a union complicates normal communication routes since certain messages must go through the union to get to and from employees. This additional step in communication can act as a filter, and can also delay, cloud, or eradicate messages, which can lead to confusion and frustration among employees.


2. Focus of Union – When a union forms, its immediate focus is on contract negotiations, pay, benefits, and HR/workplace policies. While these elements are all important to employees, they are not the key drivers of Employee Engagement or Overall Job Satisfaction. To raise Engagement and satisfaction levels, unions would instead have to focus on issues like Recognition, Career Development, Relationship Supervisor has with Employees (see Us-Vs.-Them Mentality discussed below), and the organization's Strategy and Mission.


3. Negotiated Pay Increases – In unionized environments, compensation is regulated by contract. While contracts allow employees to receive fair wages, they remove the connection between merit and compensation. Recognition is the top driver of Employee Engagement, so the removal of this connection can lead to a decrease in Engagement levels. In addition, when a union is present, employees must hand over a portion of their paycheck each month as member dues. Dues can add to feelings of dissatisfaction, especially when employees do not see the results they expected from unionization.


4. Union Control – In a unionized environment, the union tends to determine what resources are needed and the organization's physical working conditions. This control means that when employees need new cleaning supplies or an overhead light burns out, the union has to approve the purchase or work before it is completed, which can cause interference and delay the process. One of our gaming clients provided an excellent example of how the added step of getting union approval can delay a simple change. The employees wanted to move a slot machine two feet because it was causing issues with the flow of foot traffic. To do so, they had to fill out paperwork and have it sent through the union and the government (Canada). The entire process ended up taking two months to move the slot machine two feet.


5. Us-Vs.-Them Mentality – The presence of a union can heighten tension between groups of employees and between employees and management because it creates an us-vs.-them mentality. Employees belonging to different departments can feel this divide when they believe their departments' needs are not being treated with the same care as other departments' needs. The presence of a union also makes employees feel even further separated from management, which can make management seem like the "enemy," cause a lack of trust in management, and lower Engagement and satisfaction.

Since most organizations with unions do not have more satisfied or engaged employees, non-unionized organizations should do everything they can to make sure their employees do not feel the need to organize. One way to ensure an organization's employees do not want to form a union is through HR Solution's Unionization Vulnerability Index (UVI). Our UVI is the only tool in existence that has been scientifically validated, as shown by a 92 percent success rate as defined by no card signing within five years of the initial survey.

Since unionization does not tend to lead to increased Engagement or satisfaction, it should only be used as a last resort for organizations with extremely low Employee Engagement, satisfaction and morale. The best option for organizations is to minimize the possibility that employees will want to unionize. Smart organizations that want to remain non-union listen to their employees through formal and confidential surveying, making their union vulnerability risk non-existent. By staying ahead of the curve and truly caring about employees, organizations can minimize their risk of unionization.