ADP Research Institute®
||ADP Workforce Vitality Index
The ADP Workforce Vitality Index, produced by ADP Research Institute, to help you better understand your workforce dynamics, and align your workforce and business strategies.
How to Read the ADP Workforce Vitality Report
Published in November 2014
The ADP Workforce Vitality Report provides insights on labor market dynamics as well as benchmarks to measure human capital management for individual firms. The report includes details of the ADP Workforce Vitality Index (WVI) and its components.
The ADP Workforce Vitality Index (WVI) represents total real wages paid to the U.S. private sector. The index has been calculated by combination of geography, demography, and firm specific characteristics. Quarter 2 of 2011 is set as the base for the index (WVI Q22011=100).
The WVI distinguishes four types of workers in the labor market: job holders, job switchers, entrants, and leavers.
- Holders: those who stay with the same firm
- Switchers: those who change jobs
- Entrants: those who are newly hired by a firm
- Leavers: those who left the firm either voluntarily or involuntarily
The ADP Workforce Vitality Index (WVI) has the following components: turnover rate, change in real hourly wage for job switchers, change in real hourly wage for job holders, change in quarterly hours worked for job holders, total employment growth, change in real hourly wage between new hires and leavers.
- Turnover rate: Percent of job switchers in total workforce excluding new entrants and leavers. Turnover rate could be positively or negatively impacting the WVI depending on the change in wages. The positive relationship holds only when the job switchers’ wage increase is significantly higher than the job holders’ wage growth.
- Change in real hourly wage rate for job switchers: change in real hourly wage rate between the new job and the old job. Change in real hourly wage rate for job holders is positively associated with WVI change
- Change in real hourly wage rate for job holders: change in real hourly wage between two consecutive quarters. Change in real hourly wage rate for job holders is positively associated with WVI change.
- Change in hours worked for job holders: change in quarterly hours worked for job holders from one quarter to another quarter. Change in hours worked is positively associated with WVI change
- Total employment growth: change in employment from one quarter to the next quarter. Rapid total employment growth drives up WVI growth.
- Change in real hourly wage between new hires and leavers: difference between the hourly wages of new hires from current quarter and leavers from previous quarter
The ADP Workforce Vitality Report includes indices by different dimensions
- Region: Northeast, Midwest, West and South
- State: New York, New Jersey, Pennsylvania, Texas, Florida, California, Illinois, Washington, Michigan and Ohio
- Industry(NAICS code): construction (23), manufacturing (31, 32, 33), trade and transportation (42, 44, 45, 48, 49, 22), finance/real estate/information (51, 52, 53), professional services (54, 55, 56), education & healthcare (61, 62), leisure & hospitality (71, 72), other services except public services (81)
- Firm size: 1-49, 50-499, 500 and above (for US, 500 and above is further narrowed down to 500-999 and 1000 and above)
- Age: 16-24, 25-34, 35-54, 55 and above
- Gender: male and female
- Full and part time: Full-time workers are defined as those whose weekly hours is greater and equal to 35
- Wage tier: based on annual wage; less than 20K, 20K-50K, 50K-75K, 75K and above (upper bound excluded)
- Tenure: less than a year, 1-3 years, 3-5 years, 5-10 years and 10 years and above (upper bound excluded)
More Vital Signs
About the Report
The ADP Workforce Vitality Index is a comprehensive, quarterly measure of U.S. workforce dynamics that looks at key labor market indicators, such as employment growth, job turnover, wage growth and hours worked. This report yields deeper insights into workforce dynamics and trends than previously available.
Workforce Index Report FAQs (PDF) | Glossary (PDF)
Report Methodology (Executive Summary)
Calendar of Report Releases
For media inquiries about the ADP Workforce Vitality Index, please call (973) 868-1000 or email Michael Schneider.