ROSELAND, N.J., Dec. 3, 2018 /PRNewswire/ -- As a
leading provider of research on labor markets, people and
performance, ADP® today announced the biggest trends
that could impact the workplace in 2019.
Looking back at the state of the labor market according to the
monthly ADP National Employment Report® and quarterly
Workforce Vitality Report, the U.S. workforce experienced historic
gains in 2018. Specifically, in 2018 the unemployment rate
fell to a near 50-year low, more than two million jobs were added,
and wage increases began to accelerate in 2018. Wages
increased nearly an average of $1 per
hour from last year, and the average wage increase for job
switchers was 5.8 percent, while job holders saw a 4.7 percent
increase.
"With 2018 employment levels at an all-time high and broad-based
wage growth taking root, the U.S. job market is more dynamic than
ever," said Don Weinstein, Chief
Product and Technology Officer, ADP. "In 2019, employers and
workers will increase their focus on issues ranging from the
personalization of pay, to an increasing mosaic of workers that
span fulltime to gig, data privacy issues, and more."
Trends for 2019:
The Personalization of Pay
- With workers being able to personalize almost every
aspect of their personal and professional lives, employers will
need to adopt flexible options around pay schedules and provide
financial wellness tools to employees.
- Digital accounts will become an increasingly common option for
employees that allow access to pay how and when they want.
- The weekly, bi-weekly or monthly payroll cycle will evolve into
schedules that meet the needs of each individual worker.
- Today, 86 percent employees are interested in using
non-traditional financial tools to manage their pay. Tools
that enable workers to manage and budget take-home pay, while
automatically tracking spending and suggesting budgets, will help
them meet their financial goals.
Ensuring Workforce Agility
- Employers will continue to shift to a mosaic of
workers to meet business needs, increase their focus on employment
engagement and embrace the importance of the team.
- As organizations become more agile, they will have a greater
reliance on freelancers and contractors to help bridge the skills
gap and scale effectively. Employers need to assess the right
mix of freelancers (1099), temps and traditional fulltime workers
(Form W-2) to best meet their increasingly on-demand business
objectives. As a result, employers will need to manage worker
classifications in a more dynamic manner.
- Today's workforce has more generations working than ever
before. With Gen Z workers entering and Baby Boomers retiring
from fulltime work, employers will need to limit "brain drain" and
engage workers in new and creative ways.
- As employers struggle to retain and engage employees, many will
change how they approach the annual performance review and opt to
move to new performance-based models where the frequency of team
leader check-ins is key to increasing engagement. In fact,
data shows that associate engagement is 57 percent higher when a
team leader frequently checks in with their team members.
- Organizations will increasingly demand HR systems that account
for and manage where work gets done. Today, more than 82
percent of work gets done on teams. As teams organically form
to address business needs, companies need to be able to track
employee performance in a more matrixed environment. Systems
need to track what team members do well, what they enjoy and foster
ways to do more of it. Rather than focusing on developing
weaknesses, models will shift to help workers discover their
strengths and leverage them more at work.
Diversity and Inclusion
- Pressure for employers to deliver against diversity and
inclusion initiatives will continue.
- The business case for diversity had an enormous spotlight
placed on it in 2018. From the lack of women and minorities
in leadership roles, to the challenges workers faced in reporting
issues. Despite this attention, organizations still struggle
to make progress in this critical area. According to findings
from Rethinking Gender Pay Inequity in a More Transparent
World, a study released by the ADP Research
Institute®, women are paid on average 17 percent
($13,640) less in base salary than
men. However, when factoring in incentive pay, the total
earnings pay gap widens to 19 percent ($18,500).
- In 2019, organizations will need to address the gender pay gaps
by focusing on key metrics and diversity and inclusion initiatives
that demonstrate progress in both pay and bonuses.
Democratization of Data
- Employers and employees will benefit from better access to
deeper workplace insights.
- Providing business leaders with data that delivers meaningful
and actionable workforce insights, as well improving industry
competitiveness, will become the new norm. An increased focus
will be placed on how easy it is for leaders to consume and put
data into action. HR systems will increasingly tap into
artificial intelligence (AI) and machine learning (ML) to serve up
insights in real time.
- Workers will also have more access to data through financial
wellness and professional development tools that support their
goals both inside and outside the workplace.
- Data privacy will continue to remain an industry and public
focus with the EU General Data Protection Regulation (GDPR).
Other countries and states will continue to look at privacy
rights.
Digital Consumer-Grade Human Resources
- Employers and employees will continue to demand that
the technology they use at work be as user friendly as what they
use in their personal lives.
- This push will require HR solutions to be fully mobile enabled,
cloud-based, open to APIs and designed with the end user in
mind.
- HR technology and data will need to be accessed, shared and be
able to be integrated across functions and bridge internal business
silos.
About ADP (NASDAQ-ADP)
Powerful technology plus a human touch. Companies of all
types and sizes around the world rely on ADP cloud software and
expert insights to help unlock the potential of their people.
HR. Talent. Benefits. Payroll.
Compliance. Working together to build a better
workforce. For more information, visit ADP.com.
ADP, the ADP logo, ADP A more human resource, the ADP
Research Institute and the ADP National Employment Report are
registered trademarks of ADP, LLC.
Copyright ©
2018 ADP, LLC.
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SOURCE ADP, LLC