The WorkForce
Experience Gap
Improving Employee Experience Begins With Understanding Their Point of View
Executive Summary
Resilient organizations know how to successfully adapt to constant change to achieve their goals, but the path to sustained agility isn’t always evident. It’s not just about transforming processes, but also transforming the experiences employees have when planning for and performing work itself. Resiliency can’t happen without engaged employees. When organizations fail to address employees’ needs, it becomes harder to create an adaptable workforce that contributes to the transformation of the business.
Organizations are facing a war on talent. To gain and retain valued employees, better recognition of individual needs and skill sets will lead to business practices that improve employee engagement and operating outcomes.
To explore this concept further, a comprehensive survey of employers and hourly employees across various regions and industries was conducted. The survey measured employee experience in areas like rostering flexibility, pay policies, and assistance with personal circumstances. Across these critical areas, employees and employers disagree on how well organizations deliver the engaging workplace experiences on which sustained agility is built.
In almost every category, employers reported implementing flexible and rewarding policies and practices—but employees tended to disagree.
There’s a Real Experience Gap Between Employee and Employer—and It’s Significant
The Global Pandemic Exposed a Range of Unique Challenges to Virtually Every Workforce
These difficulties have had a particularly negative impact on organizations’ abilities to roster their employees amid variable demand and adapt to the myriad of operational requirements presented by the pandemic. That’s not surprising given that organizations have had to manage new regulations, reporting requirements, testing protocols, and absences.
Unusual situations like the disruptions from the pandemic are particularly difficult for organizations that don’t have the agility to adjust quickly and efficiently. Although we don’t expect another event of this magnitude, the ability to rapidly detect volatility and respond is becoming an invaluable competitive advantage in an age of accelerating change—and that requires a highly engaged workforce.
45% of employees report that COVID-19 complicated their work roster.
45%
68% of employers report that the pandemic complicated their ability to roster hourly workers.
68%
Job training is a point of contention across all regions, but especially so in the United States, where only 55% of employees report that they are properly trained by their employers compared to the 98% of employers who report that their organization requires training for at least some workers. Poorly or inadequately trained employees will be less involved with their work, less capable, and less productive. If employers can’t train their workers adequately, they can’t begin to engage them in meaningful ways to enable business agility.
Transforming talent strategies to attract, retain, and upskill employees with technology skills has the greatest impact on an organization’s top and bottom line.
This problem is particularly dominant for the deskless workers who are often the furthest away from upper management, experience the largest vulnerabilities within the general workforce (business change, wage pressure, roster flexibility etc.), and are the easiest group to exclude from the organization and its policies—especially in periods of change.
Modern technology solutions can significantly improve the management, engagement, and integration of large, deskless workforces where workers are often not sitting behind a desk with access to corporate systems. Investment in the tools needed by deskless workers still falls short.
One recent study found that only 1% of enterprise software investment has gone toward addressing the needs of this employee population.
The problem may not be with the employers themselves but instead with the outdated processes and systems still in use today.
61%
61% of employees confirm the use of automated, contactless health screening at their workplaces. Alternatives include processes like manual staff checks and self-checks with manual data entry.
The Experience Gap Is Global
Job Training
UK
AU & NZ
CanadA
US
Job Training
Operations managers realize the importance of a well-trained workforce. Employees, however, indicate that their organizations' approaches to job training are often far from ideal.
98% of employers require training for at least some hourly workers.
However, only 66% of employees feel that they are properly trained by their employers.
Employee PERSPECTIVE
98%
66%
Employer PERSPECTIVE
98%
Employer PERSPECTIVE
Employee PERSPECTIVE
Workforces in different regions have unique needs due to a wide range of considerations: culture, environment, government regulations, political shifts, etc. Organizations must deliver the experiences that their employees require while considering regional trends and individual needs, but the ability to address these requirements can be hindered by manual or one-size-fits-all tools.
Takeaways
“I feel properly trained by my employer.” vs. “My organization requires training for hourly workers.”
23%
Rostering determines how effectively labor is allocated, but it also affects how employees feel about their work. While underrostered employees can find themselves with too little to do, overrostered employees can often get overwhelmed.
Rostering
32%
Yet only 59% of employees report having rostering flexibility and, when all other variables are equal, would prefer to work for an employer that offered more flexibility in rostering.
82%
59%
82% of employers believe they offer rostering flexibility for hourly workers.
82%
Given the difficulties that changes in personal circumstances can present, a lack of organizational support can be discouraging for employees. Offering workers more flexibility and power over their rosters—whether through accessible, easily modified calendars or standardized, streamlined practices for shift swapping and time-off requests—will help engage the 40% of employees who feel neglected in this area.
Personal Circumstances
70% of employers report that some hourly employees are paid different rates depending on which task they are performing at a given time.
70%
In contrast, only 26% of employees report receiving task-based pay rates.
70%
26%
44%
Globally, employers and employees have radically different views on how pay is structured. Given that 42% of surveyed employees prefer task-based pay, but only 26% of employees report receiving it, there’s a major opportunity for employers to improve.
Pay Rates
But only 60% of employees say that their employers help them deal with personal circumstances that impact their rosters.
87%
60%
27%
87% of employers believe they help hourly workers with personal circumstances that affect work rosters.
87%
Click between the buttons to reveal the experience gap
Employees need to be recognized to do their best work. When that doesn’t happen, employers have an opportunity, and an obligation, to act. Without workforces whose accomplishments, needs, and ambitions are acknowledged and recognized, organizations are more likely to falter when new challenges emerge.
Employee Recognition
90% of employers believe they effectively recognize hourly workers in their roles.
90%
Unfortunately, only 77% of employees believe their contributions are recognized.
90%
77%
13%
Improving Employee Experience Is the Employer’s Job
Digital Transformation Can Help Close the Experience Gap
The COVID-19 pandemic has changed the physical location of employees, customers, suppliers, and organizational ecosystems, but people are still at the center of all organizations. They need access to digitized processes to function in this new environment.
Performance-focused IT teams understand the importance of streamlining operations and optimizing user experiences (including the experiences of employees). The challenge of improving the work experience is in part a technical one that falls not only on IT, but also on Operations, HR, and Finance to provide the workforce with access to modern, integrated technology solutions that meet their expectations and streamline the workplace.
Adapt to Higher Expectations with New Generations of Workers
This research has primarily explored the gap in employer/employee experiences in the workplace related to rostering, training, the offering of customized pay options, and support for changes in personal circumstance However, it’s important to recognize that this is just the tip of the iceberg.
Gen Y and Z will comprise 64% of the workforce by 2025 and their desired workplace experience is shaped by their life outside of work, including:
64%
How Does Your Employee Experience Stack Up?
Get Started Now
“My organization has effectively adapted to workforce rostering issues created by the pandemic.”
Employers Agree
81%
Employees Agree
64%
This global survey, conducted by Pollfish on behalf of WorkForce Software, was completed by 1,300 employees and 1,420 employers from a wide range of industries across 8 countries.
The survey was composed of 25 distinct questions, both open-ended and single-selection.
Methodology
Rostering
Personal Circumstances
Pay Rates
Employee Recognition
Scandinavia
60%
75%
63%
55%
74%
100%
98%
100%
88%
98%
Effective rostering is a major pain point for employees and employers everywhere. Operations managers, who are focused on keeping their workers properly allocated, focused, and happy with their working conditions, know the challenges that shift variations present in terms of labor forecasting. Finance teams also credit revenue lost to poor productivity, and excessive labor costs to unnecessary overtime, overstaffing quiet periods, or non-compliance penalties with rostering regulations. Without streamlined processes for shift swapping and access to demand forecasting or productivity over time data, it’s difficult to create optimal work rosters that balance productivity with employee engagement.
“My organization offers hourly workers flexibility in rostering.”
US
CanadA
AU & NZ
Scandinavia
UK
65%
54%
61%
64%
57%
82%
84%
85%
61%
80%
Employees Agree
Employers Agree
Employees Agree
Employers Agree
Unfortunately, only 55% of U.S. employees report receiving help from their organization when faced with personal circumstances that affect work rosters. Nearly half of U.S. employers appear to be taking a more hands-off approach than other countries, leaving employees to sort out their rostering issues on their own rather than providing more lenient policies or greater control over rosters. The United States has the most room for improvement, but organizations everywhere need to evaluate whether their policies and practices support individuality. Organizations must recognize unique skillsets directly related to work as well as individual needs, such as childcare or family needs.
“My organization helps hourly workers deal with any personal circumstances that impact their work rosters.”
US
CanadA
AU & NZ
Scandinavia
UK
71%
55%
61%
63%
62%
75%
85%
89%
90%
84%
Employees Agree
Employers Agree
Payment is a primary concern for workers and accurate pay ensures employees are engaged and motivated. In Australia for example, given that many Modern Awards and Enterprise Bargaining Agreements define what employees pay rates are based on the role and task performed, employees need to trust that they will be paid correctly. Across all regions, task-based pay is an area with a major gap between what employees expect and what they get. When pay rates don’t reflect an employee’s distinct role and the various assignments that comprise it, engagement—and company agility—suffer.
“Hourly workers at my organization are paid different rates depending on which task they are performing at any given time.”
US
CanadA
AU & NZ
Scandinavia
UK
20%
27%
25%
20%
35%
59%
67%
72%
66%
70%
Employees Agree
Employers Agree
Employees generally feel less recognized than their employers believe they are, with the strongest regional divide in the United States. When asked to describe how employers recognize their contributions, employees reported that recognition was mainly through verbal acknowledgement only.
“My organization effectively recognizes the contributions of its hourly workers.”
US
CanadA
AU & NZ
Scandinavia
UK
80%
79%
76%
75%
78%
87%
90%
93%
85%
83%
Employees Agree
Employers Agree
DOWNLOAD THE FULL REPORT
• The need for consumer-grade user interfaces, like the apps they use in their personal lives
• The desire for two-way conversations with their managers
• Having their voice heard and feedback acted on in a timely manner
• A sense of purpose and meaningful work
• Control over, and respect of, their work-life balance
• Job training to enable success
• Prioritization of their safety, health, and wellbeing in the workplace
These generations of employees are generally silent about their dissatisfaction when their needs are unmet and are quick to change jobs, especially in roles with low barriers to entry. A poor workplace experience suppresses engagement levels which in turn negatively impacts the ability to retain valuable employees.
VS.
VS.
Key Insights
COVID-19 has shown that many companies are not as well-equipped to deal with rapid change as they should be.
Across the following five regions, employers and employees are misaligned on a range of key issues.
Functional teams must work together for future success.
Functional teams across Operations, HR, Finance, and IT must work in partnership to create the workplace experiences employees want while providing the compliance, productivity, and agility the organization needs to succeed for the long term.
As new generations join the workforce, employee experience expectations will continue to increase.
With five generations of people active in the workforce for the first time in history, employee needs are more varied than ever before. And as the war for talent continues to shift the tide in favor of job seekers, employees have the rightful upper hand to demand a better workplace experience from their employers. Organizations that prioritize their employees’ happiness and motivation will reap the benefits of resiliency in this new era.
Employee experience for today’s workforce is driven by a blend of culture, place, and technology. There is significant opportunity for organizations to update internal policies and leverage modern technology for more streamlined processes within their workforces. Recent studies by McKinsey and Gartner confirm that organizations must invest in technology to enable today’s digital workforce, support a new version of business, and improve their talent strategies to attract and retain valuable employees. By aligning internal Operations, HR, Finance, and IT teams around a common goal, organizations can approach the employee experience gap in a holistic way.
Most importantly, before any organization can embark on a workforce digital transformation journey from an employee experience perspective, they must know where they are starting, where they are going, and how they will get there. The experience gap is real and, for those organizations without an action plan to close it, future business success is not guaranteed.
Organizations are jeopardizing their ability to build resiliency in a constantly changing world.
The Employee Experiences That Organizations Are Trying to Deliver Are Falling Short
Conclusion
The Global Pandemic Exposed a Range of Unique Challenges to Virtually Every Workforce
COVID-19 has shown that many companies are not as well-equipped to deal with rapid change as they should be.
Unfortunately, many employers don’t even know there’s an issue. Without workforces whose accomplishments, needs, and ambitions are acknowledged and recognized, companies are more likely to falter when new challenges emerge.
Executive Summary
Functional teams must work together for future success.
Functional teams across Operations, HR, Finance, and IT must work in partnership to create the workplace experiences employees want while providing the compliance, productivity, and agility the organization needs to succeed for the long term.
As new generations join the workforce, employee experience expectations will continue to increase.
With five generations of people active in the workforce for the first time in history, employee needs are more varied than ever before. And as the war for talent continues to shift the tide in favor of job seekers, employees have the rightful upper hand to demand a better workplace experience from their employers. Organizations that prioritize their employees’ happiness and motivation will reap the benefits of resiliency in this new era.
Employee experience for today’s workforce is driven by a blend of culture, place, and technology. There is significant opportunity for organizations to update internal policies and leverage modern technology for more streamlined processes within their workforces. Recent studies by McKinsey and Gartner confirm that organizations must invest in technology to enable today’s digital workforce, support a new version of business, and improve their talent strategies to attract and retain valuable employees. By aligning internal Operations, HR, Finance, and IT teams around a common goal, organization can approach the employee experience gap in a holistic way.
Most importantly, before any organization can embark on a workforce digital transformation journey from an employee experience perspective, they must know where they are starting, where they are going, and how they will get there. The experience gap is real and, for those organizations without an action plan to close it, future business success is not guaranteed.
Organizations are jeopardizing their ability to build resiliency in a constantly changing world.
The Employee Experiences That Organizations Are Trying to Deliver Are Falling Short
Takeaways
We'll help you perform a survey for your own organization and then benchmark your employee experience results against the data in this study.
1. Kelly, Jack. “A War For Talent Is Starting-Spoiler Alert: Workers Will Win.” Forbes, 13 Apr. 2021
2. Xuezhao, Lan. “The Billion-Dollar Ideas That Could Transform the Deskless Workforce.” Forbes, 17 June 2019
3. Panetta, Kasey. “Gartner Top Strategic Technology Trends for 2021.” Gartner, 19 Oct. 2020
4. Dhasarathy, Anusha, et al. “Seven Lessons on How Technology Transformations Can Deliver Value.”
Edited by Daniella Seiler, McKinsey & Company, 11 Mar. 2021
Additional Resources
1
2
3
4
4
3
2
1
Improving Employee Experience Begins With Understanding Their Point of View
New Study
The Workforce
Experience Gap
Want to Learn More About the Employee Experience Gap?
Before you can improve employee experience, you’ll need to figure out what your employees’ expectations and priorities are.
Download the Full Report
We'll help you perform a survey for your own organization and then benchmark your employee experience results against the data in this study.
Discover WorkForce Experience
Empower Employees Wherever Work Happens
Simplified communications, instant access to information, and real-time insights into sentiment will help transform the employee experience.
Want to Learn More About the Employee Experience Gap?
Before you can improve employee experience, you’ll need to figure out what your employees’ expectations and priorities are.
Download the Full Report
Discover WorkForce Experience
Empower Employees Wherever Work Happens
Simplified communications, instant access to information, and real-time insights into sentiment will help transform the employee experience.