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1、QUARTERLY WORKFORCE RESEARCH REPORTMEASURING WORKER MOTIVATION&COMMITMENTSuccessful companies are built on the hustle and loyalty of their workers.So we built a way to measure those invaluable qualities.ALSO IN THIS ISSUEISSUE 3|SEPTEMBER 2023THEABOUT PROMOTIONSCommitted and motivated workers can he
2、lp a companys bottom line,and theyre more likely than others to land promotions.But do employers have to worry about them jumping ship?QUARTERLY WORKFORCE RESEARCH REPORT02About Today at Work:blends ADP data representing more than 25 million U.S.workers with nearly a decade of continuing surveys of
3、more than 490,000 workers in 29 countries.Combined,these data sets provide a recurring,people-centered,and comprehensive view of the world of work.This quarterly report taps that intelligence to deliver a complete view of the employees job lifecycle,one thats rooted in data from every career touchpo
4、int and coupled with survey responses that capture how people feel about the workplace and how those feelings drive their actions.The ADP Research Institutes mission is to generate data-driven discoveries about the world of work and derive reliable economic indicators from these insights.Learn more
5、at www.ADPRI.orgWelcome to the latest edition of .This quarter,we reveal the unintended consequences of promotions and present a new way of measuring the motivation and commitment of the workforce.Companies sometimes award promotions as a way to keep their best and brightest,especially in a tight la
6、bor market.But theres a flip side of elevating an outstanding performer:It might make that individual even more marketable,as Ben Hanowell writes in this issue.If someone has excellent performance,of course you should strive to pay them more.But what companies sometimes get wrong is confusing promot
7、ions with merit pay increases.Promote people,but make sure youre promoting for the right reasons.If a person is taking on work with increased responsibility and scope,by all means promote them.But if your outstanding employee is doing excellent work in their role,there are potentially more effective
8、 ways to reward that performance think bonuses or merit pay increases,for example.To delve deeper into those best and brightest workers,weve built a tool that captures a component of the labor market thats generally not discussed or recognized:The relationship that employees have with the companies
9、they work for.As Dr.Mary Hayes and Jared Northup write,that relationship can be affected by a workers trust in leadership and their feelings of belonging and being recognized.It also can be buffeted by macro factors such as a companys performance or an economic downturn.Our new Employee Motivation a
10、nd Commitment Index captures those inputs.It seeks to measure worker motivation and commitment not for what it says about the labor market,but what it says about how workers are responding to their companies.We think this index has the potential to gauge the long-term direction of productivity and t
11、urnover at the company level and the economy at large.Send us your thoughts on this edition ofand what youd like to see in future ADP Research Institute publications.Write to the team at ADP.Research.IUntil next quarter,Nela Richardson,Ph.D.*Chief economist,ADPHead of the ADP Research Institute*Regi
12、stered representative of ADP Broker Dealer,Inc.(ADP BD),member FINRA,an affiliate of ADP,Inc.,One ADP Blvd.,Roseland,NJ,07068,and Principal Investment Strategist for ADP Strategic Plan Services,LLC(SPS)an SEC Registered Investment Adviser.Registration does not imply a certain level of skill or servi
13、ces.Letter from NelaCommitted and motivated workers can help a companys bottom line,and theyre more likely than others to land promotions.But do employers have to worry about them jumping ship?We know that a persons commitment to their employer depends in part on whether they feel recognized for exc
14、ellent work.And one way employers recognize excellence is by promoting people through the companys ranks.ADP data shows that workers who intend to stay with their current employer also are more likely than others to be committed to that employer.One would think that promoting excellent workers would
15、 only increase their motivation and commitment and reduce their risk of leaving.Think again.When someone gets their first promotion,the recognition might boost their commitment to their employer for a while.But it might also improve their confidence in their job prospects.We wondered how that first
16、promotion affects a persons risk of leaving.How does that impact evolve over the months that follow,and how does it depend on other factors related to someones job prospects?By Ben HanowellTo answer these questions,the ADP Research Institute analyzed the job histories of more than 1.2 million people
17、 in the United States working for companies that employed at least a thousand people.We looked at the years 2019 through 2022.Using this data,we built a statistical model that estimates a persons risk of leaving their employer for any reason within a given number of months,based on their managerial
18、level,job requirements,gender,months since hire,and the total number of months in which they had ever been promoted.We used the model to calculate the chances that people who actually got promoted left the company.We then used the same model to calculate what those chances would have been had those
19、same people never been promoted.Finally,we compared these two scenarios to see if moving up the ranks had any impact on retention.As it turned out,it did.For more on our statistical model,the data we used to build it,and the way we use it to measure the impact of promotion on retention,visit ADPRIs
20、Data Lab.The Hidden Truth About PromotionsQUARTERLY WORKFORCE RESEARCH REPORT04SECTION 1-THE HIDDEN TRUTH ABOUT PROMOTIONSWhat Every Manager Should Know About PromotionsWithin a month after their first promotion,29 percent of people had left their employer.Had these people not been promoted,more of
21、them might have stayed only 18 percent would have moved on,according to our estimate.Promotion,in other words,led to a nearly two-thirds increase in the risk a person would leave.By the six-month mark,that risk divide narrows.Recently promoted workers and those who hadnt been promoted both had close
22、 to the same chance of leaving the company for any reason.The two groups continued to track each other out to the nine-month mark.iCumulative chance of leaving the company for any reasonPromotion increases the chance that a person will leave.Within a month after their first promotion,29 percent of p
23、eople had left their employer.But by the six-month mark,that risk divide narrowed.The risk is most pronounced during the first six months of a promotion.0%20%0%60%80%Months since promotionSource:Statistical model built by ADP Research Institute using ADP payroll and HR dataNot promotedPro
24、motedSECTION 1-THE HIDDEN TRUTH ABOUT PROMOTIONSQUARTERLY WORKFORCE RESEARCH REPORT05All told,because promotion increases the risk of a person leaving a company,every promotion leads to a loss in effective headcount equal to about 14 days of work over a nine-month period.But remember that promotions
25、 are pretty rare.In our last issue of ,we showed that only 4.5 percent of workers are promoted within two years of being hired.That means few people are susceptible to promotions impact on the risk of leaving,leading to a small overall effect on the company as a whole.These data suggest that landing
26、 a promotion gives a person a leg up in their search for work outside their current employer.But theyre also consistent with another workplace phenomenon:People who are given more responsibility without adequate preparation,compensation,or resources could become more likely to quit.To tease apart th
27、ese two scenarios,we looked at how the impact of promotion depends on other variables that can affect a persons job prospects.People who landed their first promotion while working jobs that require little to no training or education think of work that requires a high school diploma or less were near
28、ly six times more likely to leave in the first month after their promotion than they would have been had they not been promoted.Whats more,that promotion continued to more than double their chance of leaving the company for the remainder of a nine-month period.Compare that to people promoted in jobs
29、 that demand extensive preparation,such as graduate school or an advanced technical degree.They were 52 percent more likely to leave in the first month after being promoted,but by the fifth month,their risk of leaving dropped below what it would have been without getting promoted.Fewer job entry req
30、uirements,higher riskSECTION 1-THE HIDDEN TRUTH ABOUT PROMOTIONSQUARTERLY WORKFORCE RESEARCH REPORT06The upshot:Each time someone gets promoted while working a job that requires little to no preparation,it leads to a loss in effective headcount equal to nearly three months of work.By contrast,when a
31、 person working a job that requires extensive preparation gets promoted,it costs employers less than a single day of effective headcount.Percent change in cumulative chance of leaving the company for any reason(Promotion vs.no promotion)Promotion impact weakens as job entry requirements riseJobs req
32、uiring little or no preparation stand out from the rest with the highest impact of promotion on the chance of leaving the companyDays of effective headcount lost per promotionThe stricter the job requirements,the fewer days of effective headcount lost per promotion over a nine-month period0%200%100%
33、0%400%500%Months since promotionSource:Statistical model built by ADP Research Institute using ADP payroll and HR dataSource:Statistical model built by ADP Research Institute using ADP payroll and HR dataLittle or no preparationSome preparationMedium preparationConsiderable preparationExt
34、ensive preparation851412123Little or no preparationSome preparationMedium preparationConsiderable preparationExtensive preparationSECTION 1-THE HIDDEN TRUTH ABOUT PROMOTIONSQUARTERLY WORKFORCE RESEARCH REPORT07As we mentioned earlier and illustrated in the last issue of its rare to be promoted to ma
35、nagement.Yet we also showed that the higher someone rises through company ranks,the better their promotion prospects become.It follows that their job prospects rise,too,in comparison to individual contributors.On the other hand,the non-managerial ranks of individual contributors might see a promotio
36、n into management as a signal that they could build a career at their current employer,at least for a while.If a persons job prospects improve as they rise through the managerial ranks,it might follow that those promotions increase their risk of leaving,too.Thats exactly what we found.A promotion in
37、creased a managers risk of leaving more than it did for individual contributors,and that increased risk lasted longer.While each promotion added 37 days of effective headcount for individual contributors over a nine-month period,it reduced effective headcount for managers in that same time frame.The
38、se findings reflect the economic conditions that followed the coronavirus pandemic.As the economy reopened in 2022,demand for services and goods skyrocketed,with workers in the lowest wage brackets benefiting most from the labor market boom.Workers in the bottom 10th percentile of wages saw their pa
39、y increase 9 percent from 2019 through 2022,twice the pace of wage growth experienced by earners in the 90th percentile.iiPerhaps this trend will reverse if the labor market starts to favor higher-wage earners the way it did prior to the pandemic,especially during and after the Great Recession.A pro
40、motion increased a managers risk of leaving more than it did for individual contributors,and that increased risk lasted longer.Higher rank,higher riskSECTION 1-THE HIDDEN TRUTH ABOUT PROMOTIONSQUARTERLY WORKFORCE RESEARCH REPORT0850%0%0%150%Months since promotion1st-level managers3rd-leve
41、l managers2nd-level managersIndividual contributorsYet not all managers are alike.Promotion reduced remaining tenure for first-and third-level managers the most.For first-level managers,a promotion to middle management would seem to be a suitable time to explore career options.Their promotion prospe
42、cts are better than for individual contributors,but perhaps not enough to counteract the wage bump they might get from switching jobs.Second-level managers have the highest promotion chances among managers 16.3 percent and their next move is to upper management.The promise of promotion from within i
43、ncreases the likelihood of sticking with the same employer.Finally,third-level promotions move managers into the highest ranks,where they might find themselves targeted by executive recruiters scouting for C-suite talent.Percent change in cumulative chance of leaving the company for any reason(Promo
44、tion vs.no promotion)The pull-away effect of promotion lasts longer for managersDays of effective headcount gained or lost per promotionNine months out,promotion leads to a gain in effective headcount for individual contributors but a loss for managersSource:Statistical model built by ADP Research I
45、nstitute using ADP payroll and HR dataSource:Statistical model built by ADP Research Institute using ADP payroll and HR dataIndividual contributors2nd-level managers3rd-level managers1st-level managers37162748SECTION 1-THE HIDDEN TRUTH ABOUT PROMOTIONSQUARTERLY WORKFORCE RESEARCH REPORT09The Takeawa
46、yShould you avoid promoting your managers because it increases the chance theyll leave?Of course not.Their job prospects are a function of their marketable skills,and leadership recruitment isnt easy.But you should account for this risk when promoting managers to lead larger teams.Have a plan in cas
47、e they leave.Build redundancies to mitigate the risk of losing managerial talent.Should you increase your promotion rate among individual contributors to improve retention?No,again.Promote the people who deserve it and youll increase their commitment to you as an employer where they can build a care
48、er.Promote too many of the wrong people and you lower the bar for excellence,which ultimately could undermine their motivation to work harder.Should you stop promoting your lowest-paid workers because it increases their risk of leaving?You already know the answer.The market for low-wage earners is h
49、ot.Reduce the expense of backfill recruiting by experimenting with ways to incentivize retention among this group in the months following their promotion.Footnotesi To measure job requirements,we used ADP matched job titles to Occupational Information Network(O*NET)occupation codes,which are each as
50、signed a Job Zone.ii Gould,Elise and Katherine DeCourcy.“Low-wage workers have seen historically fast real wage growth in the pandemic business cycle.”Economic Policy Institute.March 23,2023.Organizations thrive when workers have confidence in their leaders,the organization itself,and in their own a
51、bility to do the work expected of them.Unlike their less-confident peers,these workers arent paralyzed by uncertainty.Theyre not fearful of change or suspicious of innovation.Theyre motivated and empowered to meet new challenges.They want to learn new skills and take on new roles.Motivated and commi
52、tted workers,in short,are invaluable to employers.But tracking an ethereal state of mind is difficult,to say the least,and an employees positive feelings about work can easily be blown off track by myriad forces large and small.The ADP Research Institute set out to build a reliable,real-time way to
53、measure this state of worker allegiance.The result is our Employee Motivation and Commitment Index,which tracks how people think and feel about their jobs,their place on the org chart,and their employers.The EMC Index takes its measure of the labor force in real time and can tell us whether workers
54、are flourishing in their jobs or detaching.Employees,business leaders,HR practitioners,economists,and policymakers should care about worker motivation.Its important not just to individual and societal well-being,but also to a companys bottom line.Well explore these themes in this report.Measuring Wo
55、rker Motivation and CommitmentSuccessful companies are built on the hustle and loyalty of their workers.So we designed a way to measure those invaluable qualities.by Dr.Mary Hayes and Jared Northup QUARTERLY WORKFORCE RESEARCH REPORT11To build the index,we turned to our monthly Employee Sentiment Su
56、rvey and its historical repository of responses from hundreds of thousands of workers across the globe.For now,we focused our attention on responses from people in the United States.Armed with this proprietary data,we began with the theory that employee motivation and commitment is a state,not a tra
57、it.We designed the EMC Index as a tool to help define optimal functioning for employees and specific roles within an organization.The score measures how employees feel about their place at work and whether theyre thriving and growing.Because the index changes over time depending on individual and co
58、llective circumstances,it can provide context on the state of specific industries,the labor force,and the economy.In the United States,our survey delivers responses from 2,500 workers every month,data we use to measure employee engagement,resilience,and inclusion.In the end,we landed on worker respo
59、nses to nine survey items:I know I will be recognized for excellent work.I have great confidence in my companys future.In my work I am always challenged to grow.I trust my team leader.I completely trust my companys senior leaders.In the last week,I have felt excited to work every day.I see myself re
60、presented in the leadership of my organization.I believe my company promotes people based on the work they do,not what they look like.When I share my opinion,I feel heard.We used a five-point Likert scale that allows respondents to choose one of five answers,ranging from strongly agree to strongly d
61、isagree.By weighting certain responses more than others,we arrive at an EMC Index level for each worker who completes the survey.Consistent with best practices,we chose to represent motivation and commitment levels as a binary.A worker who answers many of the questions positively is categorized as h
62、igh MC.One who answers more negatively is categorized as reduced MC.As we built the index,we found that workers who score high in motivation and commitment have less intent to leave an organization,showing a clear relationship between retention and the EMC Index.An index value of more than 100 is co
63、nsistent with growing commitment and motivation.A value of less than 100 signals diminishing levels of these states.Looking at these three instruments,which weve refined over a decade of surveying workers,we examined the statistical relationship between survey responses to measure motivation and com
64、mitment at work.How Does the EMC Index Work?This was our starting point for building the EMC IndexSee ADPRIs Engagement Pulse,Workplace Resilience,and ConnectionXPS studies for more information.For more on how we constructed the EMC Index,visit ADPRIs Data Lab.SECTION 2:MEASURING WORKER MOTIVATION A
65、ND COMMITMENTQUARTERLY WORKFORCE RESEARCH REPORT12Heres What We FoundAs we hypothesized,worker motivation and commitment does in fact rise and fall over time.In August 2023,the EMC Index fell from 108 to 100,its lowest point since June 2022.The index peaked in December 2022 at 121 after a year of ro
66、bust pay growth,strong hiring,and the rise of remote work.Worker motivation and commitment rises and falls over time.In August,the EMC Index fell 8 points from the month before.The Employee Motivation and Commitment Index4060800180200DEC 2021JAN 2022FEB 2022MAR 2022APR 2022MAY 2022JUN 202
67、2JUL 2022AUG 2022SEP 2022OCT 2022NOV 2022DEC 2022JAN 2023FEB 2023MAR 2023APR 2023MAY 2023JUN 2023JUL 2023AUG 2023Source:ADP Research Institute Employee Sentiment SurveyDecember 2021=100EMC Index979895240108100SECTION 2:MEASURING WORKER MOTIVATION AND COMMI
68、TMENTQUARTERLY WORKFORCE RESEARCH REPORT13SECTION 2:MEASURING WORKER MOTIVATION AND COMMITMENTAdditional findings:ProductivityTo illustrate why workers,business leaders,economists,and policymakers should care about worker motivation and commitment,we examined the all-important yet confounding metric
69、 of productivity.Measuring output by units of input is complex and difficult.But a proxy for individual productivity can be obtained by analyzing how workers rate the quantity and quality of their output,and their commitment to getting the job done.Taken together,these metrics can help us sort worke
70、rs into three productivity categories high productivity,moderate productivity,and low productivity.When we did that,we found a strong relationship between output and worker motivation and commitment.Highly productive workers are 2.6 times more likely to respond positively to questions about their wo
71、rk and motivation.Highly productive workers are 2.6 times more likely to be high MC than moderately productive workers,and 4.9 times more likely to be high MC than low-productivity workers.Source:ADP Research Institute Employee Sentiment Survey21-month averageHigh productivityModerate productivityLo
72、w productivityShare of employees with high MC10%0%20%30%40%Productivity and high MC391220QUARTERLY WORKFORCE RESEARCH REPORT14We found a strong relationship between output and worker motivation and commitment.Additional findings:Industry differencesA persons industry might influence their level of m
73、otivation and commitment.Over the past 21 months,information and technology had the biggest share of highly motivated and committed workers,education and transportation&warehousing the smallest.Employee motivation and commitment varies by industrySource:ADP Research Institute Employee Sentiment Surv
74、ey21-month average0%10%20%30%40%50%42TechnologyInformationConstruction&related tradesFinanceReal estateApp-based task employmentProfessional servicesFood serviceManufacturingTradeLeisure&hospitalityOther industryHealth care supportHealth careEducationTransportation&warehousing37343232292825242323232
75、3222019Share of employees with high MCSECTION 2:MEASURING WORKER MOTIVATION AND COMMITMENTQUARTERLY WORKFORCE RESEARCH REPORT15Individual circumstances and market forces such as recessions,leadership changes,or company performance can influence motivation and commitment at work,causing it to fluctua
76、te markedly over time.In technology,a sector that includes electronics,robotics,data security,and artificial intelligence,motivation and commitment has been declining since February.Information which includes publishing,web hosting,television,and telecommunications also has been on a downward trend.
77、The construction,finance,and real estate sectors stand out in terms of the elevated variability of their employee motivation and commitment.By sector:Information and technologySource:ADP Research Institute Employee Sentiment SurveyDecember 2021=100EMC Index6080160180200DEC 2021JAN 2022FEB
78、 2022MAR 2022APR 2022MAY 2022JUN 2022JUL 2022AUG 2022SEP 2022OCT 2022NOV 2022DEC 2022JAN 2023FEB 2023MAR 2023APR 2023MAY 2023JUN 2023JUL 2023AUG 2023By sector:Construction,finance,real estateAll SectorsConstruction and related tradesFinanceReal estateSECTION 2:MEASURING WORKER MOTIVATION AND COMMITM
79、ENTQUARTERLY WORKFORCE RESEARCH REPORT16December 2021=100Source:ADP Research Institute Employee Sentiment SurveyEMC Index6080160180200All SectorsInformationTechnologyDEC 2021JAN 2022FEB 2022MAR 2022APR 2022MAY 2022JUN 2022JUL 2022AUG 2022SEP 2022OCT 2022NOV 2022DEC 2022JAN 2023FEB 2023MAR
80、 2023APR 2023MAY 2023JUN 2023JUL 2023AUG 2023Additional findings:DemographicsGoing deeper into the data,we looked at employee motivation and commitment by gender.The EMC Index for men fell to 99 in August,its lowest since June 2022.Education and health care show the least variability in employee mot
81、ivation and commitment.Source:ADP Research Institute Employee Sentiment SurveyDecember 2021=100Source:ADP Research Institute Employee Sentiment SurveyDecember 2021=100EMC IndexEMC IndexBy sector:Education and health careEMC Index by gender608080160180200DEC 2021JAN 2
82、022FEB 2022MAR 2022APR 2022MAY 2022JUN 2022JUL 2022AUG 2022SEP 2022OCT 2022NOV 2022DEC 2022JAN 2023FEB 2023MAR 2023APR 2023MAY 2023JUN 2023JUL 2023AUG 202342389896979910511499All SectorsEducationHealth
83、 careMenWomenSECTION 2:MEASURING WORKER MOTIVATION AND COMMITMENTQUARTERLY WORKFORCE RESEARCH REPORT17DEC 2021JAN 2022FEB 2022MAR 2022APR 2022MAY 2022JUN 2022JUL 2022AUG 2022SEP 2022OCT 2022NOV 2022DEC 2022JAN 2023FEB 2023MAR 2023APR 2023MAY 2023JUN 2023JUL 2023AUG 2023When we sorted highly motivate
84、d and committed workers by gender and age,men revealed much higher motivation and commitment scores than women during peak working-age years.Well be doing more research on the relationship between gender and the EMC Index.Men revealed much higher motivation and commitment scores than women during pe
85、ak working-age yearsSource:ADP Research Institute Employee Sentiment Survey21-month averageMenShare of employees with high MC10%0%20%30%20-3940-54Age groups55-7440%WomenMen of prime working age scored higher on motivation and commitment than women20 2023 2927 32SECTION 2:MEASURING WORKER MOTIVATION
86、AND COMMITMENTQUARTERLY WORKFORCE RESEARCH REPORT18The TakeawayFor employers,worker motivation and commitment might seem like an elusive metric to quantify.But as we demonstrate,it is measurable and,with thoughtful intent,can be nurtured to boost productivity and help organizations thrive.*Registere
87、d representative of ADP Broker Dealer,Inc.(ADP BD),Member FINRA,an affiliate of ADP,Inc.,One ADP Blvd,Roseland,NJ 07068 and Principal Investment Strategist for ADP Strategic Plan Services,LLC(SPS)an SEC Registered Investment Adviser.Registration does not imply a certain level of skill or services.Ma
88、ry Hayes,Ph.D.Research director for people and performanceJared NorthupResearch analystFor detailed biographical information,see ADPRI.org/about/Read Marys bioRead Jareds bioAbout The ADP Research InstituteAbout The Authors:About ADP The mission of the ADP Research Institute is to generate data-driv
89、en discoveries about the world of work and derive reliable economic indicators from these insights.We offer these findings as our unique contribution to making the world of work better and more productive,and to bring greater awareness to the economy at large.For more information,visit ADPRI.org.Des
90、igning better ways to work through cutting-edge products,premium services and exceptional experiences that enable people to reach their full potential.HR,Talent,Time Management,Benefits and Payroll.Informed by data and designed for people.Learn more at ADP.comThe ADP Logo,ADP,and ADP Research Instit
91、ute are registered trademarks of ADP,Inc.All other trademarks and service marks are the property of their respective owners.Copyright 2023 ADP,Inc.All rights reserved.ADPRS-20230726-4714Ben HanowellDirector of people analytics researchNela Richardson,Ph.D.*Chief economist,ADP and Head of the ADP Research InstituteRead Nelas bioRead Bens bioQUARTERLY WORKFORCE RESEARCH REPORT20