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Report

workday

EmployeeExperienceTrends:

TopFiveFocusAreasforDriving

SuccessfulTransformationand

Changein2024

TableofContents

Introduction3

EmpoweringManagerstoOwnTransformationandChange4

ClosingTheGapBetweenExecutiveandEmployeeExpectations6

RebuildingTrusttoImproveEngagementandLoyalty8

EstablishingaFoundationofEmployeeHealthandWellbeing11

AligningGrowthOpportunitieswithOrganizationalChange13

Conclusion:DrivingSuccessfulTransformationandChangein202415

Methodology16

8.1

Diversityand

Inclusion

7.8

Healthand

Wellbeing

6.8

TransformationandChange

EmployeeExperienceTrends|3

Organizationsandtheiremployeeshaveundergonewhatseemslikealifetimeof

changeinjustafewshortyears,andit’sstartingtotakeatoll.Employeesupport

fororganizationalchangehasplummetedfrom74%in2016,tojust43%in2022,

accordingtoarecent

Gartner®survey

.

Insightsfrom

WorkdayPeakonEmployeeVoice

revealthatemployeescoresfor

transformationandchangearesignificantlyloweronaveragecomparedtoall

otherareasoftheemployeeexperience.Withthepaceofchangeunlikelyto

slowin2024,organizationswillneedtodevelopabetterunderstandingofhow

organizationaltransformationimpactstheemployeeexperience.

7.8

Employee

Engagement

Ouranalysisoftransformationandchangescoresfromover90,000employees

across126organizationsrevealsanumberofvaluableinsightsaboutwhat’s

working,andwhat’snot.

Wediscoveredthatmanagersarestrugglingmorethantheirteamswhenit

comestoresourcesandsupport,buttherealsoappearstobeadisconnect

betweenseniorleadershipandtherestofthebusiness,highlightingtheflaws

thatcomewithatop-downapproachtochange.

Transformationandchangeexperiencesalsohaveabroadimpactacrossa

numberofotherkeyexperiencefactors,includinghealthandwellbeing—

animportantindicatorofemployeeresiliencethatwillbecrucialfordriving

sustainablelevelsofproductivityin2024.

Empoweringmanagerstoown

transformationandchange.

Managersareattheheartofsuccessfultransformationand

change,translatingseniorleaderstrategyintoemployee

action,mitigatingpotentialrisks,modelingtherightbehaviors,

andjugglingtheday-to-daychallengesthatariseduringtimes

ofchange.

Eventhoughmanagersareonthefrontlineoftransformationandchange,

seniorleadersareoftentheonesmakingdecisions—with75%oforganizations

adoptingatop-downapproach.

Thisplacesadditionalpressureonmanagers,highlightedbythefactthatthey

scorelowerthanindividualemployeesforallbutoneaspectoftransformation

andchange.What’smore,theoveralltransformationandchangeexperienceis

wheremanagersarelaggingfarthestbehindtheiremployees.Someoftheother

areaswithsignificantscoredifferencesinclude:

•Consideringrisks—theimpactsandrisksoftransformationandchangehavebeenproperlyconsidered,particularlyduringtheplanningstages

•Resourcesandsupport—peoplehavetheresourcesandsupporttheyneedtodotheirworkduringperiodsoftransformationandchange

•Leadingthroughchange—howmuchtrustandconfidencepeoplehaveintheirleaderstomaketherightdecisions

Drivers1

Employees

Managers

7.27

TransformationandChange—OverallExperience

6.85

-0.45

ConsideringRisks

7.07

-0.32

ResourcesandSupport

7.13

-0.26

LeadingThroughChange

-0.20

RationaleforChange

7.07

-0.19

ImpactonRole

7.04

-0.07

BeliefinChange

7.59

-0.04

IndividualInput

+0.18

7.11

1Seeafulldescriptionoftransformationandchangedrivers

EmployeeExperienceTrends|4

CommunicatingChange7.16-0.07

Theonlyaspectoftransformationandchangewheremanagersscorehigherthanindividualcontributorsisindividualinput,whichmeasureswhether

peoplefeelencouragedandsupportedtosharetheirviewsonplannedand/orongoingtransformationactivities.

Managersmighthaveopportunitiestoprovideinput,

butthefactthattheyscoresignificantlyloweracross

allbutonedriveroftransformationandchange

highlightsthelackofupwardimpact.

“

Changedoesn’tjusthappen,

it’screated—whether

throughconsciousactionor

non-action.Whenleadersat

alllevelshaveinsight

intohowtheirteamsare

impactedbychange,they

canmakeinformedchoices

onhowtobestfacilitateor

createchange.”

ElizabethPavese,PH.D

SeniorBusiness

Psychologist,Workday

Recommendedactions.

Keepinvolvingmanagersintransformationplanning.Thereisabigdifferencebetweenbeinghandedaplanofactionandtoldtomakeithappenvs.havingavoiceinthe

conversationwhenthatplanisputtogether.Involvingmanagersduringtheplanningstagesandbeyond—suchasaskingforspecificexamplesandideas—canpositivelyimpactanumberoftransformationandchangedrivers.

Followthroughonfeedbackfrompeopleleaders.Managersmighthavethe

opportunitytoprovidefeedback,butouranalysisshowstherearestillgapsineffectivelymobilizingchange.Fortransformationeffortstowork,managersneedtoseetheir

feedbackinactionanditmustaddresskeyareas,includingrisks,trade-offs,andclearerrationaleforchanges.

Givemanagersaccesstoteam-levelinsights.Transformationandchangeoftenfails

becauseofemployeeresistanceandmanagersnothavingwhattheyneedtoeffectivelylead.Providingmanagerswithaccesstoinsightsandfeedbackfromtheirteamsallows

themto

identifyandresolveareasofresistanceinrealtime

aswellascelebrateprogress.

EmployeeExperienceTrends|5

Closingthegapbetweenexecutive

andemployeeexpectations.

It’sclearthatmanagershaveamorenegative

experienceoftransformationandchangecomparedtoindividualcontributors.Butisthesametrueforalllevelsofmanagement?

Aspartofouranalysis,wesegmentedmanagersandemployeesintodifferentgroupsbasedonthenumberofdirectandindirectreportswithintheirteam,resultinginfourgroups:

•Individualcontributors:employeeswithnodirectreports

•Frontlinemanagers:managerswithonlydirectreports

•Middlemanagers:managerswithbothdirectandindirectreports

•Seniorleaders:managerswiththelargestemployeesegments

Thisgroupingrevealsthatperceptionsoftransformationandchangegetmorepositivethefurtherupintheorganizationsomeoneis.Frontlinemanagershavethemostnegativeexperienceofthethreemanagergroups—scoringlowerthanindividualcontributorsacrossallbutonedriveroftransformationandchange.

Drivers

Individual

Contributors

Frontline

Management

Senior

Leadership

Middle

Management

6.85

-0.50

TransformationandChange—OverallExperience

+0.62

-0.33

7.59

-0.13

+0.17

+0.98

BeliefinChange

LeadingThroughChange7.27-0.27-0.06+0.83

7.16

-0.48

+0.23

+1.36

CommunicatingChange

ResourcesandSupport

7.13

-0.31

-0.14

+0.65

IndividualInput

7.11

+0.13

+0.52

+1.36

RationaleforChange

7.07

-0.32

+0.04

+0.95

ConsideringRisks

7.07

-0.15

-0.19

+0.73

7.04

-0.25

+0.29

+1.42

ImpactonRole

EmployeeExperienceTrends|6

Forbothseniorleadersandmiddlemanagers,therearethreeareasof

transformationandchangewheretheyscoresignificantlyhigherthan

thoseonthefrontline:

•Impactonrole—theamountofinformationpeoplebelievetheyhaveabouttheimpactofanyplannedorongoingchangesintheirpersonalorworklife

•Communicatingchange—thelevelofawarenesspeoplehaveaboutthestatusoforganizationaltransformationandchangeactivities

•Individualinput—whetherpeoplefeelencouragedandsupportedtosharetheirviewsonplannedand/orongoingtransformationandchangeactivities

Thedifferenceinscoresbetweenseniorleadersand

thosewithintheirreportinglineshighlightsthetop-down

natureofchangewithinmanyorganizations.Theflowof

informationisoftenoneway,withmanagersandemployees

expectedtoimplementchange,ratherthanco-createit.

Recommendedactions.

Talkwithfrontlinemanagers.Duetothesizeandcomplexityofmostorganizations,

seniorleadersareoftenforcedtomakedecisionsinavacuum.Theiropinionsaremorelikelytobeformedbyindustrytrendsandtheopinionsoftheirpeersthanthosewhowillbeimpacted.Maketimetotalkwithfrontlinemanagersandgatheremployeefeedbackthroughskip-levelconversationsandtownhallforums.

Createafeelingofcollectiveownership.Employeesaremorelikelytosupporttransformationandchangewhentheyunderstandwhyit’shappening.Frontline

managersneedmoreinformation,support,andtalkingpointstohelpensurethataclearrationaleforchangeiscommunicatedandreinforced.Thisinturncanhelpemployeestoviewchangeasanopportunity,notathreat.

Gobeyondtop-downcommunication.Companyall-handsmeetingsorotherforms

ofone-to-manycommunicationmightbeefficient,buttheydon’tallowpeopletoaskquestionsandmakesenseoftheirroleintransformationandchangeplans.Setupa

networkofchangechampionswhoareavailabletopeopleacrosstheorganization,andprovidethewholeorganizationwithregularprogressupdates.

EmployeeExperienceTrends|7

Rebuildingtrusttoimprove

engagementandloyalty.

Arecurringthemethatemergedfromouranalysisisthe

importanceoftrustingleadershiptomaketherightdecisions.

LeadingThroughChangehadthestrongestcorrelationwith

engagement,specificallyhowsatisfiedemployeesare,and

theirwillingnesstostay.

Externalresearchhighlightsthesefindings,withemployeeswhoreporthigh

levelsoftrustandcarefromleadershipmorethan2xlikelytoagreethattheir

companyhassuccessfullynavigatedexternalpressures,and

40%lesslikely

toleave

.

Outcome

Engagement(Satisfaction)

Engagement(Loyalty)

Individual

Contributors

Leading

Through

Change

+0.24

Resources

&Support

+0.22

Beliefin

Change

+0.18

Leading

Through

Change

+0.27

Resources

&Support

+0.24

Beliefin

Change

+0.19

Frontline

Leading

Resources

Leading

Resources

Beliefin

Management

Through

Change

+0.32

&Support

+0.24

Through

Change

+0.26

&Support

+0.23

Change

+0.18

Middle

Leading

Resources

Individual

Leading

Resources

Individual

Management

Through

Change

+0.26

&Support

+0.18

Input

+0.17

Through

Change

+0.30

&Support

+0.18

Input

+0.18

Senior

Leadership

ConsideringRisks

+0.32

Individual

Input

+0.29

ConsideringRisks

+0.44

Individual

Input

+0.22

High(>0.25)Medium(between0.15and0.25)Low(<0.15)

Oneofthekeydifferentiatorsbetweenindividualcontributorsandfrontline

managerscomparedtothoseinmoreseniorpositionsisthatengagementand

loyaltyaremorelikelytobeinfluencedbybeliefinchange,whichmeasures

howconfidentpeoplearethatplannedtransformationandchangewillbe

beneficialandensurethefuturesuccessfortheorganization.

EmployeeExperienceTrends|8

Thisreinforcestheimportanceoftrust,especiallyas

thesegroupshavelessinputduringtimesofchange,and

havetorelyonthedecision-makingofseniorleaders.

Anotherimportantaspectofengagementduringtimesofchangeiswhether

ornotemployeesfeelvalued.Researchhasshownthat

upto55%ofemployee

engagementisdrivenbynon-financialrecognition

—whichhelpsemployees

feelvalued,contributestohigherlevelsofengagement,andcanbea

determiningfactorforemployeeretention.

Thetransformationandchangedrivermostlikelytoimpactwhetherornot

someonefeelsvaluedisindividualinput—whichistrueacrossalllevelsof

theorganization.

Outcome

DEI–InclusivenessValued

IndividualContributors

IndividualInput

+0.40

FrontlineManagement

IndividualInput

+0.34

Resources&Support

+0.22

MiddleManagement

IndividualInput

+0.28

ImpactonRole

+0.27

SeniorLeadership

IndividualInput

+0.27

LeadingThroughChangeResources&Support

+0.23+0.18

●High(>025)●Medium(between0.15and025)●Low(<015)

EmployeeExperienceTrends|9

Therearenumerousbenefitsthatcomewithincorporatingemployeefeedback

intotransformationandchangeinitiatives.Notonlydoesitresultinemployees

feelingmorevalued—whichtranslatestohigherlevelsofengagementand

productivity—italsoprovidesaquantitativemeasureofprogress,andcan

increasetransformationsuccessratesbyasmuchas70%

.

Recommendedactions.

Studieshaveshown

therearetwotypesoftrust:task-basedandrelationship-based.Oneisbasedonsomeone’sabilitytounderstandandcompleteatask,theotheronvulnerabilityandcreatingasenseof

psychologicalsafety

.Whilegettingthingsdonemightseemmoreimportantduringtimesofchange,relationship-basedtrustenablesmanagersandemployeestoembracehigherlevelsofdiscomfortwhenitcomestolearninganddevelopment,innovation,andrisk-taking.

Bewillingtoadmitmistakes.Leadersareexpectedtohavealltheanswers,butadmittingwhensomethinggoeswrong,orsharingconcernsanduncertaintiesduringtimesof

change,demonstratesvulnerability,whichinturncultivateshigherlevelsoftrust.

Recognizeothers.Transformationandchangeisateamsport,whichiswhyit’s

importanttorecognizepeoplethroughouttheorganizationwhoaredrivingitand

supportingit—especiallywhenitcomestomanagersandemployeesonthefrontline.

Celebratesmallwins.Weoftenmisstheprogressbeingmadealongtheway,especiallyinlarge-scalechangeinitiatives.Highlightingsmallwinsincreasespeople’sbeliefin

changeandhelpsthemfeelvaluedfortheircontributions.

EmployeeExperienceTrends|10

Establishingafoundationofemployee

healthandwellbeing.

Inthesamewaythatit’simpossibletoachieveendless

growthwithafiniteamountofresources,organizationswill

needtodevelopabetterunderstandingofemployeehealth

andwellbeingin2024iftheywanttoensurethesuccessof

futuretransformationandchangeinitiatives.

Overallhealthandwellbeingscoresdeclinedby0.45betweenQ22022and

Q22023,whichfurthercompounds

theelevatedlevelsofburnoutrisk

that

employeesexperiencedacrossthemajorityofindustriesin2022following

theglobalpandemic.

Withinthecontextoftransformationandchange,oneofthebestindicatorsof

healthandwellbeingisrole-relatedstress,whichhasalsodeclinedby0.17since

2022.Perhapsunsurprisingly,role-relatedstressscoresaremorelikelytobe

positivewhenmanagersandemployeeshavetherightresourcesandsupport

duringtimesofchange.

Outcome

Healthandwellbeing–Rolerelatedstress

IndividualContributors

Resources&Support

+0.34

ImpactonRole

+0.21

FrontlineManagement

Resources&Support

+0.36

ConsideringRisks

+0.19

MiddleManagement

Resources&Support

+0.36

ConsideringRisks

+0.19

SeniorLeadership

Rationaleforchange

+0.30

BeliefinChange

+0.26

IndividualInput

+0.25

High(>0.25)Medium(between0.15and0.25)Low(<0.15)

EmployeeExperienceTrends|11

Anotherimportantaspectofreducingrole-relatedstressisthelevelof

transparencymanagersandemployeeshaveaboutthepotentialimpactof

change.Formanagers,thatmeansaproperunderstandingofpotentialrisks,

whereasemployeesaremoreconcernedwiththeimpactthattransformation

andchangeislikelytohaveontheirrole.

Providingmanagersandemployeeswiththeright

amountoftransparencynotonlyhasthepotentialto

reducerole-relatedstressandimproveoverallperceptions

oftransformationandchange,itcanalsocreatenew

opportunitiesforgrowthanddevelopment.

Recommendedactions.

Putchangeintocontext.Employeescanexhaustthemselvestryingtomakesenseof

changeontheirown.Talkingwithpeopleabouthowchangesareimpactingtheirrole—

whatisandisn’tchanging—helpsminimizeuncertainty,canincreaseemployeeconfidence,andinvitesanopenconversationabouthowemployeescanbepartoftheshift.

Berealisticandprioritizeworkloads.Transformationinitiativesareunlikelytosucceedifexcessiveworkloadsresultinemployeeburnout,absences,orturnover.Ifadditionalhiringisn’tanoption,makesurethatgoals,expectations,andtimelinesarereflectiveofsustainablelevelsoftransformationandchange.Don’tbeafraidtoadjustplans.

Fosterasenseofbelonging.Supportiverelationshipsatworkareassociatedwith

lower

levelsofpsychologicaldistress

.Framingtransformationasanopportunityratherthanathreatcanhelptofacilitatecross-functionalcollaborationandknowledgesharing,whilealsomakingiteasierformanagersandemployeestoaskforhelp.

EmployeeExperienceTrends|12

Aligninggrowthopportunities

withorganizationalchange.

Basedoninsightsfrom

thelatestWorkdayhiringtrends

report

,organizationsarerecruitingforfewerroles,coupled

withanincreaseinapplicationsandadeclineinvoluntary

turnoverof20%comparedtothesametimelastyear.

Asaresult,organizationswillneedtorecruittheright

peopleforafinitenumberofroles,andfocusonbringing

outthebestintheirexistingtalent.

Insteadoffocusingonspecificrolesandresponsibilities,whichcan

evolvequicklyduringtimesofchange,organizationsaremorelikelytofind

successwithaskills-basedapproach—whichrequiresamoreiterative

approachtoemployeegrowthanddevelopment.

Akeyfactorofgrowthscoresduringtransformationandchangeis

individualinput,whichmeasureswhetherpeoplefeelencouragedand

supportedtosharetheirfeedback.

Givingemployeestheopportunitytoprovidefeedbackallowsmanagers

todevelopabetterunderstandingofthechallengesfacingtheirteam,

theskillsrequiredtoovercomethem,andhowthoseskillscanleadto

otheropportunitieswithintheorganization.

Outcome

Growth

IndividualContributors

IndividualInput

+0.23

Resources&Support

+0.22

ImpactonRole

+0.17

FrontlineManagement

IndividualInput

+0.21

ImpactonRole

+0.17

Resources&Support

+0.16

MiddleManagement

IndividualInput

+0.29

Resources&Support

+0.21

SeniorLeadership

IndividualInput

+0.25

BeliefinChange

+0.21

High(>0.25)Medium(between0.15and0.25)Low(<0.15)

EmployeeExperienceTrends|13

Anothercontributingfactorofgrowthscoresforemployeesandfrontline

managersrelatestothelevelthatemployeesfeelinformedabouttheimpact

oftransformationandchangeontheirrole.Beingtransparentabouthow

someone’srolemightchangenotonlyhelpstoalleviatesomeofthemental

stressthatcomeswithuncertainty,italsoprovidesemployeeswithan

opportunitytoreflectontheircurrentskillsandambitionswithinthecontext

oftransformationinitiatives.

Toolsthatleveragemachinelearningandartificialintelligence,suchas

WorkdaySkillsCloud

,canhelpsurfacepersonalizedrecommendations

suchasconnections,mentors,andgigs.Thismakesiteasierformanagers,

withthehelpofour

ManagerInsightsHub

,toproactivelyidentifythebest

opportunitiesfortheiremployeesbasedonskillsinterests,helpingtoimprove

talentmobilityandemployeeengagement.

Recommendedactions.

Identifyskillsgapswithintheorganization.Beforeembarkingonanewtransformation

andchangeinitiative,it’simportanttoknowifthemixofskillswithinanorganizationcan

supportit.Ifnot,thefirststepislikelytoinvolveadditionalhiringandupskilling.

Creategrowthopportunitiesinternally.Hiringisn’talwaysanoptionduringtimesof

change,butmostorganizationshaveawellofuntappedtalent.Intentionallyaligning

peoplewithopportunitiestoupskillormovetoanotherteamcanhelpboostengagementandprovideapipelineofinternaltalentforfutureroles.

Prioritizeongoingconversationswithemployees.Transformationandchange

isinherentlymessy,whichiswhyone-to-oneandteammeetingscanoftenfalloff

calendars.Makingtimeforone-to-onemeetingsandteamconversationskeepsgrowth

anddevelopmenttopofmind—unlockingmoreopportunitiesforupskilling.

EmployeeExperienceTrends|14

TheADKARframeworkrecognizesthatchangemanagementisaboutaddressingboththeheartsandmindsofemployees,ashighlightedearlyonby

McKinsey&Company

that

emphasizedthe“reshapingofemployeeattitudesand

behaviorsisjustascriticaltothesuccessofatransformationastheimplementationofprocesschanges.”

Asourresearchshows,ongoingtransformationandchangecomesatacost.InsightsfromWorkdayPeakonEmployeeVoicenotonlyhelptogaugeorganizationalreadiness,theyals

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