Dayforce report reveals disconnect between executives & workers

A new report from Dayforce has revealed significant gaps between executives' perceptions and the realities faced by frontline workers and middle managers in Australia and New Zealand. The research indicates a substantial disconnect in understanding the challenges and pressures experienced by employees on the front lines.

Dayforce's report, "Conquering the Frontline Manager Complexity Crisis," was based on a survey conducted by Hanover Research, encompassing 6,935 respondents globally, including an Australian/New Zealand sample size of 1,011 respondents. The survey involved 460 workers, 99 middle managers, and 452 executives from various industries. The findings highlight several domains where there is a misalignment in views between executives, managers, and workers.

According to the report, while 97% of the surveyed executives in Australia and New Zealand believe they understand the challenges faced by their frontline workers, only 73% of workers agree with this statement. As for the perception of fair pay, only 37% of managers and 77% of workers believe that employees are compensated fairly for their work.

Financial stress appears to be a common issue, with 74% of managers and 75% of workers stating that financial stress at least sometimes distracts them from their work. Another crucial area of concern is staffing. Only 52% of managers and 79% of workers feel that they often or always have an appropriate number of staff, a sentiment that is significantly higher among executives at 94%.

The burden of staffing issues is palpable among workers, with 54% reporting that they often or very often feel personally stressed due to staffing challenges. Frontline workers identified higher compensation (40%), improved paid sick days and holidays (31%), and better health benefits (30%) as key factors that would make them feel more appreciated.

Dayforce's Chief Strategy Officer, Justine Janssen, emphasised the importance of empowering managers to address these issues. "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 optimised 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," Janssen said.

The report highlights five key areas where organisations can support managers to improve the overall performance of their frontline workforce:

Support Workforce Planning: Scheduling is a significant driver of turnover, with 89% of managers and 94% of workers in Australia and New Zealand likely to leave their current job for a role with a better schedule. Managers require leadership support to enhance schedule flexibility for workers.

Democratise Data to Make Competitive Pay Decisions: With the rising cost of living, compensation greatly impacts turnover. While most executives (97% in Australia and New Zealand) feel they have the data needed to make competitive pay decisions, only 48% of managers feel confident in this regard. Providing managers with the necessary information to make informed compensation decisions is crucial.

Tackle Labour Shortages and Skills Gaps: Helping managers optimise their current workforce by prioritising internal mobility and creating personalised career paths is vital. The research found that 80% of workers in Australia and New Zealand want to advance within their company, but they need support with skills development to do so.

Invest in Workforce Compliance: Compliance challenges are widespread, with 99% of executives in Australia and New Zealand acknowledging such issues. Only 26% of managers agree that workforce compliance has become harder over the past two years. Utilising technology to ease compliance management can help managers focus more on their people.

Lean in with Executive Support to Build Culture and Connection: There is a clear disparity in connection to the employer between executives and frontline workers. While 98% of executives in Australia and New Zealand feel a moderate or high degree of connection, only 64% of workers share this sentiment. Executives must engage with and listen to workers to minimise labour shortages that disrupt business continuity.

The findings from Dayforce's report underline the critical role of managers in addressing the disconnect between executives' perceptions and the actual experiences of frontline workers. By empowering managers with the necessary tools and support, organisations can mitigate frontline risks and foster a more aligned and efficient workforce.