Dayforce Research: Managers Key to Conquering Complexity Crisis Facing Frontline Workforce

Rhea-AI Summary

Dayforce has released a report, 'Conquering the Frontline Manager Complexity Crisis,' highlighting a disconnect between executives and frontline employees. While 83% of executives believe they understand the challenges faced by frontline workers, only 62% of employees agree. The study, conducted by Hanover Research, surveyed 6,935 workers, managers, and executives.

The report identifies key areas for improvement: workforce planning, competitive pay, tackling labor shortages, compliance, and building culture and connection. Findings include that 89% of managers and 86% of workers would leave for better scheduling, and 72% of managers lack confidence in making compensation decisions. Additionally, 42% of managers find compliance increasingly difficult. The report suggests empowering managers with data and tools to address these challenges.

Dayforce emphasizes the need for executive support to align organizational goals and improve frontline worker experiences, potentially reducing turnover and enhancing performance.

Positive

• 83% of executives acknowledge frontline challenges, a critical first step toward addressing them.
• The report identifies 5 key areas to support managers, which could enhance workforce efficiency and loyalty.
• 89% of managers and 86% of workers are likely to leave for better scheduling, highlighting a significant area for improvement.
• Most executives (88%) feel equipped to make competitive compensation decisions, a promising sign for addressing pay-related turnover.

Negative

• Only 62% of frontline workers feel their challenges are understood by executives, indicating a significant disconnect.
• 42% of managers report increasing difficulty in managing workforce compliance over the past two years.
• 72% of managers do not feel confident in their ability to make competitive compensation decisions, potentially affecting turnover rates.

83% of surveyed executives say they understand challenges facing frontline workers, but only 62% of workers agree

MINNEAPOLIS and TORONTO, July 09, 2024 (GLOBE NEWSWIRE) -- Dayforce, Inc. (NYSE: DAY; TSX: DAY), a global human capital management (HCM) leader that makes work life better, today released a report, Conquering the Frontline Manager Complexity Crisis, that revealed alignment between frontline workers and managers, but a disconnect with executives at the helm of their organizations. Findings show misalignment across a range of critical business challenges, including workforce planning, pay, labor shortages and skills gaps, workforce compliance, and culture and connection.

With an estimated 70-80% of the workforce not sitting behind a desk¹, this new research dives into the frontline worker experience to help executives gain insights to better support managers, improve efficiencies, and build trust and loyalty with workers. Conducted by Hanover Research and surveying 6,935 workers, managers, and executives in industries with frontline workers, the findings point to an opportunity to help mitigate frontline risks – including high turnover, avoidable costs, and negative customer experiences – by enabling managers to help solve these challenges.

“Whether it’s workers, managers, or executives – it’s clear that people at all levels of a frontline-focused organization feel the pain of the growing complexity crisis, with each group experiencing it differently,” said Justine Janssen, Chief Strategy Officer, Dayforce, Inc. “The key to closing the gap is empowering managers with the data, tools, and executive support needed to drive better decision making, increased efficiencies, lower turnover, and optimized performance. This can also help align senior leadership and workers by increasing visibility into the everyday reality of frontline workers and making their work lives better.”

The report identified five key areas of opportunity for organizations to better support managers and improve the overall performance of their frontline workforce:

• Support Workforce Planning: As a major driver of turnover, scheduling is a big issue for organizations. Our research found that 89% of managers and 86% of workers said they are likely to leave their current job for a role with a better schedule. Managers need leadership buy-in and support to improve schedule flexibility for workers – and for themselves too.
• Democratize Data to Make Competitive Pay Decisions: With the rising cost of living, compensation has an outsized impact on turnover. The research found that while most executives (88%) feel they have the data they need to make competitive compensation decisions, managers don’t feel as confident (72%). Organizations should give managers the information they need to make compensation decisions that help reduce turnover, improve recruitment, and continuously focus on fair pay as a fundamental element of the employer/employee relationship.
• Tackle Labor Shortages and Skills Gaps: Help managers optimize their current workforce by prioritizing internal mobility and creating personalized career paths. The research found 65% of workers surveyed want to advance in their company, but they will need to be supported with skills development opportunities to do so.
• Invest in Workforce Compliance: Nearly all (92%) executives surveyed said their organization has compliance challenges, and 42% of managers agreed that workforce compliance has become harder over the past two years. Organizations should leverage technology that makes compliance easier to manage and saves time for managers, so they can focus more on people.
• Lean in with Executive Support to Build Culture and Connection: According to the report, 90% of executives said they feel a moderate or high degree of connection to their employer, compared to just 72% of frontline workers. The employee experience is no longer just a manager’s responsibility, executives must also engage with and listen to workers to help minimize labor shortages that disrupt business continuity.
  

Additional Information

• Download the report: Conquering the Frontline Manager Complexity Crisis
• Read the blog: New research: Managers can unlock the value of your frontline workforce

¹ 43% of Deskless Workers Are Looking For a New Job, BCG, 2022

Survey Methodology
This survey was conducted online by Hanover Research from April 1, 2024 to May 3, 2024. The study includes responses from 6,935 workers, managers, and executives from 16 different industries with frontline workers in Australia, Canada, Germany, Malaysia, New Zealand, Singapore, the United Kingdom, and the United States.

About Dayforce
Dayforce makes work life better. Everything we do as a global leader in HCM technology is focused on improving work for thousands of customers and millions of employees around the world. Our single, global people platform for HR, payroll, talent, workforce management, and benefits equips Dayforce customers to unlock their full workforce potential and operate with confidence. To learn how Dayforce helps create quantifiable value for organizations of all sizes and industries, visit dayforce.com.

Media Contact
Nick de Pass
nick.depass@dayforce.com

FAQ

What is the key finding of the Dayforce report released in July 2024?

The report reveals a significant disconnect between executives and frontline workers, with only 62% of employees feeling their challenges are understood by executives.

What percentage of managers and workers are likely to leave their jobs for better scheduling, according to the Dayforce report?

The report found that 89% of managers and 86% of workers are likely to leave their current jobs for roles offering better schedules.

How confident are managers in making competitive compensation decisions as per the Dayforce report?

Only 72% of managers feel confident in making competitive compensation decisions, compared to 88% of executives.

What are the main areas of opportunity identified in Dayforce's report?

The report identifies five key areas: workforce planning, competitive pay decisions, tackling labor shortages, compliance, and building culture and connection.

What specific compliance challenges do managers face, according to the Dayforce report?

42% of managers find workforce compliance increasingly difficult, a challenge that has grown over the past two years.