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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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