Key Findings On The Employment Experience: 2017 Workforce Mindset Study
Key Findings On The Employment Experience: 2017 Workforce Mindset Study
We heard from more than 2,500 respondents representing the U.S. working
population about their work experiences. They answered more than 150
questions about themselves, how they feel about their employer, and what
they expect in an employment relationship. You’ll find the highlights of our
findings here -- exploring employee value proposition (EVP), total rewards,
manager effectiveness and technology. Here are a few points to start:
Employees aren’t feeling your EVP. While 83% of employees say having a
clear EVP is important, only 34% can describe it for their current employer.
They want more fun and flexibility. Right behind pay and benefits, fun and
flexibility are the attributes most likely to differentiate the employment
experience. (They’d like to see more innovation, too.)
Your people want respect. It’s what some of your employees seek most.
The other characteristics and values most desired by today’s employees are
balance, recognition-oriented, accountable and honest.
Today’s workforce craves flexibility. In fact, the majority of employees say it’s
the single most meaningful attribute - even more so than unlimited paid
time off and parental leave.
They understand less than you think. Though employees are experiencing
the “one-stop-shop” of their intranets, only half feel well informed or find it
easy to collaborate with other employees…and even fewer say HR systems
are effective.
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WORKFORCE MINDSET® STUDY
Just how important is having an EVP that employees can articulate, that
differentiates and that they find compelling?
—Employees
— who could describe their company’s EVP are two times more
likely to be engaged.
—Employees
— who find their EVP unique or special compared to that
of other companies are three times more likely to be engaged.
—Employees
— who find their company’s EVP compelling are three times
more likely to be engaged.
When you create a unique and meaningful EVP, you’ll get more
from your employees.
The vast majority of employees see value in an EVP; however, they are
mixed about what they have today. Only 62% of employees find their
company’s EVP compelling, although 57% say it’s an important reason
they stay.
When asked what employees think of their current EVP, 70% wish they had
a better understanding of their company’s EVP, and nearly as many (65%)
wish it was more compelling than it is.
This data sends a strong message to employers about the need to articulate
an EVP that will resonate with employees and, more importantly, live up to
its promise.
65%
I wish my company’s EVP was better than it is
61%
70%
67%
64%
64%
62%
My company’s EVP is compelling to me
69%
66%
67%
60%
56%
57%
My company’s EVP is an important reason I
65%
stay at my company 61%
62%
57%
47%
3
L O O K I N G AT T H E E M P L O Y M E N T E X P E R I E N C E
53%
Figures represent those ranking each factor a 1, 2, 3, 4 or 5, with “1” being the most influential factor on an employee’s day-to-day employment experience.
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Top 5 2017: What differentiates employers Top 5 2016: What differentiates employers
Top 5 2017: Expectations of all employers Top 5 2016: Expectations of all employers
5
L O O K I N G AT T H E E M P L O Y M E N T E X P E R I E N C E
3. Competitive 3. Competitive
3. Accountable 3. Respectful
4. Honest 4. Accountable
5. Respectful 5. Honest
When we look at total rewards overall, the news isn’t much better. In 2017,
76% say the overall total rewards program is the same as or better than
others, down from 84% in 2015. The reduced perception is consistent across
the generations. This decline in perceived competitiveness may explain why
employees lean towards value propositions that emphasize total rewards.
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T O TA L R E WA R D S A N D T H E E M P L O Y M E N T E X P E R I E N C E
Of course, health, time off and The areas most often cited as below or well below the value of others
retirement are important, too. include incentives/bonus pay, long-term incentives and recognition—all of
About half of employees rank medical which tend to be performance- or achievement-based programs. Incentives/
and prescription drug coverage (57%),
bonus pay is especially important to consider, since the proportion of total
paid time off (54%) and retirement
savings plans (47%) among their top 5
pay for bonuses has tripled from 1990 to 2017 (4.2% to 12.8% of total pay)1.
most important programs. These are
important even for Millennials, Luckily for employers, high performers are more likely than other
although Millennials also rank employees to view their rewards as competitive. Only 22% (incentives/bonus),
workplace flexibility highly (47%). 20% (long-term incentives) and 15% (base pay) think those rewards are
behind other companies’. That may be a result of the recent trends toward
more differentiation in base pay and incentives. Companies might be the
proportion of total pay with the trade-off that high performers are happier
when it comes to their pay packages.
With “provides better than average pay” as a #1 differentiator and with 72%
ranking pay among their top 5 most important rewards, organizations
should keep in mind that pay can’t be ignored when it comes to investing
in and communicating total rewards.
48%
Incentive/bonus pay
37%
45%
52%
48%
26%
Long-term incentives
19%
26%
26%
24%
16%
Recognition programs
19%
18%
14%
14%
2
Figures represent those ranking each in their top 5 when asked to rank a list of 14 rewards in order or importance.
Flexibility is key.
With this increased desire for workplace flexibility, companies need to ensure
the overall package they offer includes and captures the environment,
culture and programs that support the effective integration of work and
personal commitments, especially for the generation taking over a large
part of the workforce. There’s no denying that flexibility is becoming
increasingly important to employees in 2017:
——61% say workplace or work hour flexibility would be the most meaningful
program if offered by an employer—double the rating of trendy benefits
like unlimited time off and four times higher than longer parental leave.
—— Workplace flexibility is also the #1 rated most influential factor likely to
impact a person’s day-to-day employment experience.
—— 59% say that a flexible work environment is an important differentiator.
And while employees’ opinion of their current workplace flexibility has gone
up since 2015 (72% think the workplace flexibility offered by their employer is
competitive or better than what others offer), there is often more that
companies can do to meet their employees’ desire for real flexibility.
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T O TA L R E WA R D S A N D T H E E M P L O Y M E N T E X P E R I E N C E
One reason people may not feel great about their total rewards or
individual programs is that managers and their companies are struggling
to communicate about them. Here’s what managers had to say when asked
if they had the tools, resources and information needed to have valuable
conversations with their direct reports about various reward components.
54+55+55
Benefits and wellbeing programs 54%
How the company’s performance assessment and pay systems work 55%
Even with the right tools and resources in hand, only half of managers feel
it’s their responsibility to talk about these areas. Employees may be relying
on an increasingly self-service culture, with 68% of employees feeling they
know where to go to find information on pay, benefits and HR topics. This
means it’s incumbent on companies to provide engaging and relevant
information when it comes to the rewards they offer.
Figures represent managers who site “strongly agree” or “agree” on a 6-point scale.
1
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T E C H N O LO G Y A N D T H E E M P LOY M E N T E X P E R I E N C E
53%
N/A
N/A
48%
48%
49%
Employees could select all that apply; 5 of the 10 statements with the lowest percentage shown here.
2
Perceptions of HR systems1
42+41+40+39
Our human resource systems are effective 42%
Our human resource systems have gotten more effective over the past 40%
few years
Our human resource systems have gotten easier to use over the past 39%
few years
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T E C H N O LO G Y A N D T H E E M P LOY M E N T E X P E R I E N C E
Enterprise social networks (ESNs) have been touted as a way to improve the
employment experience. In our study, nearly half of employees use an ESN,
with most of these using SharePoint. Three-quarters find their ESN valuable
and use it for a variety of things.
23+75+ 5+ 4+ 7+ 54+
Top 5: What enterprise social networks (ESNs) or related platforms
do you use at work?
23% 7% 5% 5% 4% 7% 54%
26%
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M A N A G E M E N T A N D T H E E M P LOY M E N T E X P E R I E N C E
Year over year, employees have consistently told us they want a strong
culture that embraces workplace flexibility and relationships—in short,
a more human workplace.
Yes, I expect my manager to do this I strongly agree or agree with this statement
78%
37%
87%
48%
61%
60%
57%
55%
51%
62%
59%
56%
55%
57%
55%
information
Managers say they want more time and support for building managerial
skills (34%) and coaching their employees (22%). In the end, it equates to
how managers’ responsibilities are prioritized. Once employers have a clear
point of view on where employee-manager connection and career
development fit in, strong communication to both managers and employees
and an infrastructure that supports development naturally follow.
Figures on the left represent managers who responded “almost entirely or mostly my responsibility,” and figures on the right represent managers citing “strongly agree” or “agree” on a
1
6-point scale.
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Workforce Mindset and the
employment experience
Employees know what they want and often don’t feel like they’re getting
it all. While the common wisdom is that people are overwhelmed with
information, they actually want to feel more informed on the things that
matter to them in the workplace. They want to be inspired by their EVP.
They want to know more about what they have and how it compares.
And technology and managers are both falling short on all these fronts.
EVP
—— Consider what you want to be known for, map critical employment
experiences, and begin to align the current experience with what you
want it to be
—— Don’t neglect those elements that are most differentiating to employees,
such as flexibility, fun and rewards
Total Rewards
—— Show the value of your total rewards by using both tools to aggregate
total rewards value and timely program-specific communication
(for example, merit increase time may be a good time to remind
employees about the value of saving for retirement)
—— Spend more time on high-value communications that matter most
to people, such as personalized, mobile friendly, and interactive
communication
Technology
—— Conduct an audit of your ecosystem… what’s working, how engaged
are employees in the channels, how can they be more streamlined?
—— Prioritize improvements to technology that emphasize collaboration,
connection, and obtaining relevant information quickly to help them
be more productive and engaged
Managers
—— Don’t assume they know what to do. Give them the tools they need to do
their jobs well — specifically how to have engaging 1:1 conversations with
employees
—— Set clear expectations with them so they understand their role in
delivering messages across multiple topics
We hope the findings here put you on a path to consider your own
employment experience and what you can do to create an experience
that reimagines how your people and your organization thrive together.
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Respondent Gender
demographics
50+50+N
50%
female
50%
male
2,615
respondents
employed full-
or part-time
1,000+
employees
per company
Generations
47+26+27N
47%
Millennials1
28%
Boomers
26%
Gen Xers
13+22+201629N 21+26+192311N
1,000–1,999 <2 years
29% 11%
25,000 or more 22% 20 or more years
2,000–4,999
23%
10–<20 years
16%
10,000–24,999
19%
20% 26%
6–<10 years
5,000–9,999 2–<6 years
15+12+75171814N 22+34+2915N
22%
health care <$35,000
17%
retail and
wholesale
trade
29%
$65,000–
$99,999
16%
manufacturing
and energy
5%
internet, media, entertainment 34%
and leisure $35,000–$64,999
7%
utilities and
telecommunications
11%
business services and
construction
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Alight’s mindset research
alight.com