Nearly 35,000 workers across the globe reveal
their expectations around pay, skill development, and AI as the
world of work enters a new era.
ROSELAND, N.J., June 3, 2024
/PRNewswire/ -- The post-pandemic era of work is being shaped by
technological advances, economic forces, and shifting demographics.
Building on survey responses from nearly 35,000 workers in 18
countries, the ADP Research Institute's fourth annual "People
at Work 2024: A Global Workforce View" captures how worker
expectations are changing.
The great transition
This year will mark an important transition from a troubled,
pandemic-driven economy to a new, post-pandemic world. In this new
version of work, the pandemic imprint lingers, but technological
advances, changing demographics and shifting workplace norms will
drive seismic change.
Global inflation has reset worker expectations on pay,
demographic shifts have crowded five generations into the
workplace, and pioneering innovation in artificial intelligence has
created uncertainty.
Employers seeking to navigate this labor market in transition
will need a keen awareness of workforce sentiment. Companies that
communicate clearly, calibrate worker expectations, nurture trust,
and invest in skill development can stay ahead of what's to
come
"The pandemic left a permanent imprint on the world of
work, forcing change big and small
on long-standing practices. Now comes a new wave of
challenges, with demographic shifts and new technologies
reshaping work in real time," ADP chief economist Nela Richardson said. "While global
employment has stabilized, worker sentiment continues to shift
in this fast-moving environment."
People at Work 2024: A Global Workforce View
Among the takeaways from this year's report:
Cost-of-living increases influence expectations for
pay: One of the challenges of highly inflationary
time periods is the impact cost-of-living increases have on how
people think about future price increases and their wage
expectations.
After a global bout of surging inflation, an elevated cost of
living has reset worker expectations on pay. The data show workers
in countries with a high rate of inflation have greater
expectations for pay increases. But if the past is any measure,
people may be disappointed as survey respondents in every country
overestimated their pay gains last year.
"While global inflation has lessened considerably over the past
three years, people still haven't fully adjusted their pay
expectations to reflect this decrease," Richardson said. "For that
reason, some workers might still expect higher pay than is
warranted by current economic or business fundamentals."
- The biggest mismatch in pay expectations globally was found in
Latin America. There was a 6
percent gap between worker pay expectations and pay increases in
Brazil. In Chile, the gap was 5 percent.
- Seventy-seven percent of workers expect a pay increase in the
next 12 months, 20 percent expect no change, and 3 percent
anticipate a pay cut.
- Employers need to manage changing, and sometimes lofty, worker
expectations. The report advises employers to adopt transparent
communication and fully explain corporate initiatives and their
impact on the issues workers care most about, including salary,
worker flexibility, career progression, and training
opportunities.
A multigenerational workforce: The world's older workers
are moving into retirement and soon will be replaced by a new
generation. People born in the late 1980s and early 1990s are
moving up the management ladder, and those born around the turn of
the century are entering the job market. Employers will need to
address the differing priorities of a workforce with wide-ranging
ages. Balancing company initiatives to support multiple generations
will be key to fostering a positive work environment.
- As adults aged 25 to 34 settle into the workforce and begin to
advance in their careers, they're less likely than any other group
to make day-to-day enjoyment of their jobs a top priority
(26%).
- Workers 55 and older prioritize autonomy over their time more
than their younger counterparts. 31% of workers 55 and older rank
flexibility of hours among their top priorities, compared to 24% of
workers aged 18 to 24.
- One of the biggest changes to the global workplace has been the
widespread adoption of flexible work arrangements. Embracing this
change, 17% of adults 18 to 24 value the freedom to choose where
they work, compared to 13% of workers 55 and older.
- As workers age, they place more importance on salary. Most
workers 45 to 54 rank salary as a top priority (62%). Pay is
prioritized by 56% of workers aged 25 to 34, and only 44% of
workers aged 18 to 24.
AI's relationship to job skills: Workers are
keeping a close eye on the skills they'll need for the
future, and their confidence in this regard is tied to their
relationship with AI. For employers looking to integrate AI,
building employee trust and investing in skills development will be
crucial. AI training and building AI capabilities into workflows to
drive efficiencies for employees will be top strategic
priorities.
- Almost half of workers surveyed agree that skill sets of the
future will include technological abilities that aren't imperative
in their current job.
- Among workers who expect to be helped by AI, 70% are confident
they have the skills they need to advance in the next three years.
Workers who most fear AI have the least confidence (45%) that they
have the skills they'll need.
- Most workers (53%) lack confidence that their employer is
investing in their skill development.
- Among workers who feel strongly about AI, more than half say
their employer is investing in the skills training they need. As
workers grow less confident in their employers' willingness or
ability to invest in them, their concern about AI impacting their
jobs grows.
Stress is on a downward trend: Stress affects mental
health, job performance, and employee satisfaction. With the
pandemic in the rearview mirror, the percentage of employees facing
daily stress continues to decline, but employers should continue to
prioritize mitigating employee stress in the workplace.
- The share of workers who say they experience stress every day
has fallen from 19% in 2021 to 16% in 2022 to 15% in 2023.
- 32% of employees said they feel moderate stress, or stress
multiple times a week, down from 34% in 2022. 52% of employees feel
low stress, or experience stress once a week or less, up from 50%
in 2022.
- No country is immune from stress, however a large share of
workers in North America—1 in 5—report a high incidence of
on-the-job stress, a trend driven by the
United States.
- Only 21% of people feel their employer is fully supporting
their mental wellbeing.
- Employees around the world who feel supported by managers and
colleagues are less likely to be in the high-stress category.
Workers in the low-stress grouping say they're more likely to
engage in team-building activities, take days off, and have regular
check-ins with their managers.
"This continuous evolution of work is both a challenge
and an opportunity. It requires companies to be tuned in to how
their workforce is adapting and feeling," Richardson said. "If
companies keep worker sentiment in mind, change can be an
opportunity for growth."
For additional findings and context on the global worker
perspective, see the ADP Research Institute's "People at Work 2024:
A Global Workforce View" and its regional breakouts at
ADPRI.org.
About the ADP Research Institute
The ADP Research Institute delivers data-driven discoveries
about the world of work and derives reliable economic indicators
from these insights. We offer these findings as a unique
contribution to making the world of work better and more productive
by delivering actionable insights to the economy at large.
About ADP (NASDAQ: ADP)
Designing better ways to work through cutting-edge products,
premium services and exceptional experiences that enable people to
reach their full potential. HR, Talent, Time Management, Benefits
and Payroll. Informed by data and designed for people. Learn more
at ADP.com
ADP, the ADP logo, and Always Designing for People, are
trademarks of ADP, Inc. All other marks are the property of their
respective owners.
Copyright © 2024 ADP, Inc. All rights reserved.
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SOURCE ADP, Inc.