Executives and managers often believe they grasp the real day-to-day struggles of their frontline workers, but new research from Dayforce reveals a stark contrast between their perceptions and reality.
The study, conducted by Hanover Research and surveying nearly 7,000 workers, managers, and executives across various industries, found that while 83% of executives believe they understand the challenges faced by frontline workers, only 62% of the workers agree.
This disparity points to a misalignment on several key issues, including workforce planning, compensation, labour shortages, skills gaps, compliance, and workplace culture.
“Whether it’s workers, managers, or executives – it’s clear that people at all levels of a frontline-focused organization feel the pain of the growing complexity crisis, with each group experiencing it differently,” said Justine Janssen, chief strategy officer at Dayforce. “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 optimized performance.”
5 key areas for improvement
The report, titled Conquering the Frontline Manager Complexity Crisis, identified five primary areas where organizations can better support their managers to enhance the performance and satisfaction of their frontline workforce:
Workforce planning
Scheduling remains a major issue, with 89% of managers and 86% of workers indicating a willingness to leave their jobs for better schedules. Managers need leadership support to improve schedule flexibility, which can significantly reduce turnover and improve employee satisfaction, it found.
“Solving the disconnect between how executives view scheduling challenges compared to managers and workers could help prevent turnover and absenteeism that can lead to critical business challenges, including diminished customer satisfaction, decreased sales, and increased labour shortages,” it said.
How often do you have an appropriate number of people staffed at your work?
| Frequency | Worker | Manager | Executive |
|---|---|---|---|
| Never | 3% | 1% | 1% |
| Rarely | 10% | 10% | 4% |
| Sometimes | 21% | 27% | 15% |
| Often | 51% | 48% | 53% |
| Always | 16% | 15% | 27% |
Compensation
There is a notable gap in the perception of pay fairness, with 83% of executives believing employees are paid fairly. That’s 21 percentage points higher than managers and 19 percentage points higher than workers.
Organizations must provide managers with the necessary data to make informed compensation decisions that align with market conditions and employee expectations, it said.
“It’s essential for executive to democratize data to ensure managers have the information they need to make competitive compensation decisions,” it said. “And it must be done in a way that allows them to continuously focus on fair pay, as the definition of ‘fair’ can change rapidly.”
Why has your organization adopted or considered adopting on-demand pay for its workforce?
(Select all that apply. Executive responses shown.)
| Reason | Percentage |
|---|---|
| Increasing employee satisfaction and engagement | 73% |
| Increasing employee productivity | 70% |
| Attracting and recruiting new talent | 63% |
| Competing with what other employers are offering | 59% |
| Not sure/don’t know | 1% |
Labour shortages and skills gaps
Sixty-five percent of workers expressed a desire to advance within their companies, highlighting the need for personalized career paths and internal mobility programs. Investing in skills development can help optimize the existing workforce and reduce dependency on external hiring.
“Internal mobility is an essential strategy for workforce flexibility that our findings show is popular among employees,” it said. “Organizations should capitalize on this by designing personalized career paths. The added benefit is that employers won’t need to constantly recruit outside candidates for open roles, while improving worker retention.”
Compliance
Workforce compliance is increasingly challenging, with 42% of managers reporting that it has become harder over the past two years. Both executives and managers support technological investments to simplify compliance management, allowing managers to focus more on people.
“Nearly all (92%) the executives we surveyed in our frontline workforce research said their organization has compliance challenges,” the report stated. “They cited variable pay, the increased volume of data to manage, and the impacts of AI as their top compliance challenges.”
What are your organization’s top compliance challenges?
(Select all that apply. Executive responses shown.)
| Compliance Challenge | Percentage |
|---|---|
| Variable pay | 34% |
| Increased volume of data to manage | 34% |
| Impacts of AI | 33% |
| Safety | 33% |
| Fair scheduling | 31% |
| Union and collective bargaining agreements | 24% |
| Tax rules | 24% |
| Variations in legislation in the same country | 19% |
| Global variations in legislation | 17% |
| We do not experience any challenges related to compliance | 8% |
Culture and connection
A significant gap exists in the perceived connection to the organization, with 90% of executives feeling connected compared to 72% of frontline workers. Enhancing communication and employee listening can help build a stronger organizational culture and improve overall engagement.
“Executives must stay attuned to what workers and managers say would make them feel more appreciated to avoid regrettable loss that further aggravates labour shortages,” it said. “And while compensation is naturally top of the list, there are other opportunities given today’s budget realities.”
Which of the following would make you feel more appreciated by your employer?
(Select all that apply.)
| Action | Worker (%) | Manager (%) |
|---|---|---|
| Higher compensation | 54% | 55% |
| Implement or increase paid sick days/vacation days | 40% | 38% |
| Implement or improve health benefits | 35% | 34% |
| More career development opportunities | 30% | 34% |
| Implement or improve mental health benefits | 31% | 36% |
| Implement or improve retirement savings plan | 29% | 31% |
| More flexibility | 30% | 31% |
| A fairer schedule | 26% | 31% |
| There is nothing my employer could do to make me feel more appreciated | 5% | 3% |
| Other | 2% | 2% |
Bridging the gap
The report emphasized the importance of executive support in empowering managers to address these challenges effectively. By investing in technology that enhances data accessibility and communication, organizations can foster a more inclusive and efficient work environment, it said.
“The complexity crisis affects all levels of the organization,” said Janssen. “But by equipping managers with the right tools and support, we can create a more aligned and productive workforce that drives sustainable success for the organization.”
The report suggests several strategies to empower managers and drive better outcomes across the workforce.
First, empowering frontline managers by simplifying their work through automation and providing tools to enhance workforce control and wellbeing is crucial. This can help reduce turnover by enabling managers to better understand and address worker challenges.
Additionally, a data-driven approach is essential. Investing in a unified people platform allows managers to access real-time data for making informed decisions on staffing, pay, and other critical areas, ultimately improving labor cost control and customer experience.
Organizations should also focus on “nailing the hard stuff” by adopting solutions that reduce compliance complexity and ensuring accurate, timely, and fair pay practices. This includes combining pay and timekeeping solutions for better operational visibility.
Being ready for anything means scaling the business with contingent workers and leveraging AI-assisted career pathing to support employee development with minimal managerial intervention.
Finally, delivering quantifiable value through modernizing workforce technology stacks and empowering managers with AI tools is key to enhancing productivity and reducing turnover.
Aligning employees with company culture and goals ensures a more motivated and efficient workforce, addressing issues like absenteeism and customer satisfaction. By implementing these strategies, businesses can overcome the complexities of managing a frontline workforce and drive sustainable success, it said.
