In addition, 50 percent of employees believe the information they’re getting from management, up from 37 percent in 2002. Other indicators were positive compared with 2002. Seven percent more employees believe their employer conducts business with honesty and integrity; 17 percent more believe management makes timely decisions and 7 percent more believe management motivates employees.

Weak areas, according to Watson Wyatt, continue to be performance management, communication, employee development and rewards. Only 31 percent of employees believe their company does a good job helping poor performers improve. Only 32 percent feel their company acts appropriately when performance does not improve.

"While companies have made strides in performance management, they still struggle to differentiate between high and low performers and to make tough decisions regarding poor performers who don’t improve," said Watson Wyatt’s Ilene Gochman, one of the survey’s co-authors.