ADP Research Institute (ADPRI) recently released Issue 4 of Today at Work, ADPRI’s quarterly report series that leverages data-driven insights to deliver a comprehensive view of the world of work. The newest issue of Today at Work continues this recurring report’s trend of publishing findings that can be useful for workplace leaders in search of data-backed clarity.
Each issue of Today at Work taps into ADP's anonymized and aggregated data, regular surveys, and ongoing ADPRI research to provide a thorough analysis of the workforce. The resulting insights can provide business leaders and HR practitioners with an ongoing source of actionable metrics to help them make informed decisions in areas where data historically has been lacking.
For example, Issue 1 of Today at Work sought to reveal “the truth about pay,” specifically how employees feel about their pay and what kinds of behaviors those feelings relate to. As an example, ADPRI found pay equity impacts engagement, with workers who believe their pay is unfair 3.4 times less likely to be fully engaged.
In Issue 3 of Today at Work, ADPRI researched the connection between promotions and retention and did this by analyzing the job histories of more than 1.2 million people in the U.S. between the years 2019 and 2022 working for companies that employed at least a thousand people. The research revealed certain employees are more likely to leave an employer after being promoted within a very specific timeframe, underscoring the need for employers to establish strong promotion programs that increase retention amongst those most likely to leave.
Issue 4, released on December 12, 2023, continues the Today at Work trend by providing data-driven insights on a variety of labor market topics, including workplace stress, HR staffing, and the nursing shortage.
Before highlighting findings from each of those stories, it’s important to note ADPRI will continue to release Today at Work on a quarterly basis. Be on the lookout for future versions of Today at Work as the data within Issues 1 through 4 of this report has been fresh, comprehensive, and a welcomed addition to the HR community. It’s exciting to think what could be included in the next iterations of Today at Work as 2024 gets underway.
Workplace Stress
ADPRI sought to find out more about stress and how it impacts the workplace. Specifically, they wanted to investigate how individuals uniquely respond to stress, with some employees thriving under stress and others reacting negatively.
For example, ADPRI found 32% of employees thrive under stress, while 51% report feeling rattled, and 17% get overloaded. And then depending on how employees react to stress, ADPRI found a connection to things like intent to leave and productivity.
Employees who thrive on stress tend to have higher productivity, while also being less likely to leave their employer.
The takeaway? Business leaders and HR practitioners should listen to their employees, understand how each employee uniquely responds to stress, and then build processes to help employees manage, mitigate, and even begin to thrive with workplace stress.
HR Staffing
Using ADP data going back to 2018, ADPRI created an “HR staffing ratio,” or the number of HR personnel for every 100 employees.
ADPRI then plotted this HR staffing ratio against employee turnover to see how one impacts the other.
For starters, HR staffing is up more than 11% since 2018. Recruiters as a share of HR staff grew more than 20% from 2018 through September 2023, which reflects a labor market in high demand for workers.
In terms of the relationship between HR staffing and turnover, employers that expand their HR ranks might reduce employee turnover, at least to a point. Turnover drops for HR staffing ratios above 0.5, that is, when there is at least one HR staff member for every 200 employees. That trend reverses, however, when the HR staffing ratio exceeds 4.5, or nine HR office personnel for every 200 employees.
The takeaway? Business leaders and HR practitioners should understand the value of HR staff, seeing the evidence that suggests reduced HR staffing is accompanied by high employee turnover.
The Nursing Shortage
ADPRI found demand for nurses has far outstripped supply since 2021 despite employment for registered nurses growing 13% over the last five years, more than triple the rate of national employment growth.
Moreover, ADPRI also found the average tenure for registered nurses is now at five years, compared to 5.7 years for U.S. workers overall. Since 2019, the time registered nurses have been on a job has been steadily declining. Before this time, nurses usually stayed on the job longer than other professions.
The takeaway? Business leaders and HR practitioners in this industry should understand demand for nurses is high and tenure is declining, highlighting the need to offer competitive pay, good benefits, increased flexibility, and optimal working conditions.