New ADP Research Institute® Study Shows Continuing Disconnect Between Human Resources Departments and Employees
Disconnect Exists Across Company Sizes and Global Geographies
ROSELAND, N.J. – September 23, 2014 – ADP®, a leading global provider of human capital management (HCM) solutions, today revealed findings from several new ADP Research Institute® studies on the interplay between human resources (HR) departments and the employees they serve. The studies, compiled in the white paper Human Capital Management’s Disconnect: A Global Snapshot, found a persistent disconnect between HR and the workforce irrespective of company size or location. The findings further revealed the disconnect extends to senior leadership, who also appear out of touch with employee attitudes and perceptions.
Among the areas where employees, HR and senior leadership don’t see eye-to-eye are:
- Employees rank the level of their compensation and benefits less favorably than HR or management does
- With the exception of the U.S. workforce, employees rate their work/life balance significantly lower than the perceptions of HR or senior management
- Career opportunities – a key driver for keeping employees – receive significantly lower ratings from employees than from HR
- Senior leadership is also rated less positively by employees than by HR – sometimes as low as employees rate the HR function itself
“What this study shows is, despite efforts to improve communications and facilitate better relationships between HR, senior leadership and employees, a big gap remains,” said Ahu Yildirmaz, vice president and head of the ADP Research Institute. “Companies are operating without a fully engaged workforce, an issue that has to be addressed if they are going to effectively manage their human capital.”
On a global basis, with the exception of Latin America, employees outside the U.S. appear much less satisfied overall with the companies they work for.
- 63% of employees in the U.S. and Latin America are “Extremely” or “Very” satisfied with their employer
- 61% in Canada
- 53% in Europe
- 48% in Asia-Pac
Perhaps more disturbing is the difference in the perception between HR and employees on how the company is managed. Employees tend to rate many management functions, particularly those dealing with workforce and talent management, much lower than HR does. This was true in all geographies and across nine different talent management areas surveyed, including opportunity for professional growth, training and support from management. Employee perceptions tended to be lower as company size increased.
The relationship with HR also has a major impact on employee retention. In the U.S., two out of five employees indicated an intention to leave their companies within the next 12 months. According to the study, dissatisfaction with HR processes, policies and functions is a major driver behind intent to leave.
To obtain a free copy of this ADP Research Institute whitepaper visit Human Capital Management’s Disconnect: A Global Snapshot.
About the ADP Research Institute®
The ADP Research Institute provides insights to leaders in both the private and public sectors around issues of human capital management, employment trends and workforce strategy.
With more than $12 billion in revenues and 65 years of experience, ADP® (Nasdaq: ADP) serves approximately 637,000 clients in more than 125 countries. As one of the world's largest providers of business outsourcing and Human Capital Management solutions, ADP offers a wide range of human resource, payroll, talent management, tax and benefits administration solutions from a single source, and helps clients comply with regulatory and legislative changes, such as the Affordable Care Act (ACA). ADP's easy-to-use solutions for employers provide superior value to companies of all types and sizes. ADP is also a leading provider of integrated computing solutions to auto, truck, motorcycle, marine, recreational vehicle, and heavy equipment dealers throughout the world. For more information about ADP, visit the company's Web site at www.ADP.com.
The ADP logo, ADP, and the ADP Research Institute are registered trademarks of ADP, LLC. All other trademarks are the property of their respective owners. Copyright © 2014, ADP, LLC.
Dick Wolfe, ADP