There is a significant divide in workplace culture perceptions between leaders and employees, with less than half of workers feeling their companies are effectively fostering a positive culture, despite widespread efforts by executives and HR leaders to improve it, according to new research from Dayforce.
The 15th Annual Dayforce Pulse of Talent report, which surveyed 9,489 employees across nine countries, found that while 84% of executives and 81% of HR leaders say they are actively working to strengthen organizational culture, only 48% of workers agreed their workplaces had made real progress.
Dayforce Chief People Officer Amy Cappellanti-Wolf highlighted the challenge, saying, “For organizations, cultivating a strong culture is a constant balancing act between productivity and agility and creating a space where people can do their best work.”
Workplace culture index
In an effort to gauge workforce sentiment, Dayforce introduced a Workplace Culture Index in this year’s report, grouping respondents as Culture Promoters, Culture Passives, or Culture Detractors. These segments underscore the cultural disparities within organizations. While 85% of Culture Promoters believe they have the necessary technology to perform efficiently, only 39% of Culture Detractors felt the same. Similarly, Culture Promoters were nearly four times as likely as Culture Detractors to feel their company’s benefits aligned well with their needs.
Flexible work options also play a role in shaping perceptions. More than half of Culture Promoters reported having flexibility in how, when, and where they work, whereas less than a third of Culture Detractors reported the same experience. Trust was another stark contrast: 91% of Culture Promoters felt trusted by their employers, compared to just 29% of Culture Detractors.
Role of AI
The report highlights the role of artificial intelligence (AI) in shaping workplace perceptions, with a notable gap between leaders and employees. Executives were 44% more likely than workers to believe AI is used responsibly and nearly 50% more likely to say they understood AI’s current and future applications. This discrepancy indicates, the report suggests, that greater transparency about AI use might help bridge the communication gap and support a stronger organizational culture.
The stakes of cultivating a positive culture are high, with 69% of respondents indicating they have turned down or would turn down a job opportunity if the culture didn’t feel right. For younger workers under 35, that figure rises to 75%. Respondents also said that an improved culture would boost engagement, mental health, and motivation, with 51% noting they would feel more engaged, 47% believing their mental health would improve, and 46% saying they would be more motivated to work harder.
The survey, conducted by Hanover Research between September 4 and September 20, 2024, included participants aged 18 and older from companies with at least 100 employees in Australia, Canada, Germany, Japan, Malaysia, New Zealand, Singapore, the United Kingdom, and the United States.