ADP Research Institute (ADPRI) has launched Today at Work , a fresh and comprehensive data-driven resource for business leaders and other decision-makers that will be released every quarter with new findings on a variety of topics impacting the world at work.
For accountants, Today at Work can be leveraged as an ongoing, data-driven business resource that they can share with clients who want to improve their businesses and employee experiences by way of actionable insights on workforce topics where data has historically been lacking.
Additionally, accountants can use the findings coming out of Today at Work to make informed decisions for their own businesses and employees.
Blending ADP’s extensive data set representing more than 25 million US workers with nearly a decade of continued surveys of more than 490,000 workers in 29 countries, Today at Work examines the entire employee lifecycle to provide a people-centered and comprehensive view of the world of work.
As accounting clients continue to adjust their approach to finding, keeping and developing workers, it is more necessary than ever to have reliable data and insights to understand the needs of the worker and keep pace with the changing and evolving workforce.
“With so much data at our fingertips, we have the opportunity to tell the full story of the workforce with an eye toward its continued evolution and change,” says Dr. Nela Richardson, ADP, chief economist and head of the ADP Research Institute. “For example, productivity has always been a key metric monitored by decision-makers and economists, but understanding what drives productivity has been difficult to measure. In this report, we’re able to illustrate the important link between motivation and commitment and productivity.”
In the September issue of Today at Work — “The Hidden Truth About Promotions” — ADPRI shows how promotions, under certain conditions, can impact businesses, a finding that underscores the importance of having a thoughtful retention plan and a strategy to support these career milestones.
ADPRI analyzed the full job histories of more than 1.2 million US workers from 2019 through 2022 to see if there was a relationship between receiving a promotion and leaving the company. Within a month after receiving their first promotion, 29% of people had left their employer. Had these people not been promoted, only 18% would have moved on.
By the six-month mark, that risk narrows, and both newly promoted workers and those who had not been promoted had the same chance of leaving the company for any reason.
Additional variables can factor into the impact of a promotion. Workers in jobs with fewer entry requirements are more likely to quit after being newly promoted, for example. In roles that demand extensive preparation such as graduate school or an advanced technical degree, a promotion increased a manager’s risk of leaving more than it did for non-managerial workers.
So for accountants and their clients, what would be the takeaways and learnings coming out of the new ADPRI research regarding promotions and their impact on retention?
The findings highlight the importance for an employer to have a strategic approach to promotions and what comes after. For example, it is key to provide career development opportunities that help workers transition into their new roles and responsibilities, which could, in turn, increase worker commitment to their employer.
Career development does not end with a promotion; in fact, this is the start of a new journey for that employee and it’s crucial for employers to provide the support they need in their new role.
It also highlights the importance for businesses to develop a good bench so that if employees do leave, they have the people in place to make sure the company continues to operate at a high-level.
The report also debuts the Employee Motivation and Commitment Index, a real-time way to measure the state of worker allegiance. The EMC Index tracks how people think and feel about their jobs, their place on the organizational chart, and their employers.
This intelligence can help organizations boost productivity and provide insight into labor force dynamics.
In August 2023, the EMC Index fell from 108 to 100, its lowest point since June 2022. The index peaked in December 2022 at 121, after a year of robust pay growth, strong hiring, and the rise of remote work. The EMC Index also revealed a strong relationship between output and worker motivation and commitment. High-productivity workers are 2.6 times more likely to respond positively to questions about their work and motivation.
For the finance industry specifically, 32% of employees in this sector had high motivation and commitment according to a 21-month average. This was the fourth highest share behind technology (42%), information (37%), and construction and related trades (34%).
Twenty-eight percent of employees in the professional services industry had high motivation and commitment.
Today at Work will be released quarterly, with each issue leveraging ADP’s extensive data set to cover a range of workplace topics and deliver actionable insights.
“This is only the beginning of what this series of reports will offer,” Richardson says. “For the first time, we’re combining ADP’s unparalleled hard data with people-centric surveys to identify actionable insights for decision-makers.”
For additional findings, visit Today at Work. For more information on the ADP Research Institute, CLICK HERE.