Discrepancy between management and frontline employees widens

Beekeeper is, among other things, the provider of the "Frontline Success System," a mobile platform for frontline team collaboration. In one of the most comprehensive surveys in the world, the company asked 6,000 employees and managers from Europe and the USA about the topic of employee retention: What motivates and what stresses? What helps employees stay in their jobs? Many of these industries suffer from high turnover and exhausted staff. The problem, according to the survey's findings, does not lie in excessive expectations on the part of the workforce. Rather, it shows that there is insufficient communication between the hierarchy levels: Many managers simply don't know what their employees are missing at work.

The report gives companies practical advice on how they can improve the quality of jobs and the employee experience and thus counteract the shortage of skilled workers. This includes, among other things, reliable shifts and attractive social benefits. All industries have some catching up to do when it comes to digitizing frontline workplaces. According to the respondents, the construction industry is particularly far behind.

45 percent of employees plan to leave their jobs

The results of the survey show how high the need for action is for companies: 45 percent of employees plan to leave their jobs in the coming months. Frontline industries are struggling with particularly high levels of layoffs. In retail, for example, the turnover rate is 60 percent. Fifty percent of hourly employees quit their jobs within the first 120 days. Overall, turnover costs companies worldwide $630 billion each year, according to the "2020 Retention Report"of the Work Institute. Cristian Grossmann, founder and CEO of Beekeeper AG: "The way companies approach the important topic of employee retention is clearly not working. Studies and surveys show that there is a growing discrepancy between what employees want and what management wants. Each employee who leaves costs an average of almost 12,000 francs. If companies want to remain competitive, they must take effective measures to improve employee retention."

Recognition, feedback, reliable shifts and good benefits.

Among the most important factors for motivation and employee retention:

• Framework conditions that enable the work to be done in good quality and in the allotted time. In the manufacturing industry, for example, this is the biggest motivator for half of the respondents.
• Leadership that cares about the workforce and thanks them for their efforts is critical for about half of employees in all industries.
• In customer-facing industries such as healthcare professions, retail and construction, positive feedback from colleagues and customers top the list of motivating factors, with more than 60 percent in each.
• For 51 percent of healthcare professionals and 48 percent of retail employees, it is important that supervisors recognize hard work.
• Thirty-two percent of healthcare respondents and 39 percent of retail respondents value predictable and reliable shifts as one of the most important factors.
• In the manufacturing industry, 49 percent value leadership that is actively engaged with employees. Competitive benefits such as health care, mental health care, child care, transportation and paid time off rank second for 35 percent.
• Likewise, 35 percent of manufacturing workers and 37 percent of healthcare workers want to understand why their work is important to the company and society.
• Thirty-two percent of construction workers said they want tools and technology to help them work better and smarter.

Frontline workplaces are hardly digitized

Cristian Grossmann explains: "The construction industry is notoriously behind other industries when it comes to digital transformation. When it does go digital, it does so primarily through sophisticated project management tools such as cloud-based programs and Building Information Modeling, or BIM. Construction workers also want tools designed specifically for them to participate in the industry's digital revolution."

Only three percent use collaboration apps

Things don't look much better in other frontline industries: In manufacturing, 85 percent of employees in German-speaking countries say they work with email, while in hospitality the figure is 81 percent, followed by WhatsApp and SMS at 55 and 75 percent respectively. An app that employees without a PC workstation can use, for example, to manage their tasks or access checklists regardless of location, is used by only three percent of production companies and eight percent of employers in the hospitality industry in the DACH countries. And even when it comes to intranets, eleven percent of German manufacturing companies and 17 percent of catering companies have some catching up to do. The healthcare sector is comparatively well digitized. Here, 43 percent of employers operate an employee portal or intranet. Only ten percent use an employee app for work organization.

Communication breakdown between managers and employees

The survey reveals factors for motivation and employee loyalty that seem comprehensible and easy to implement. However, it also provides a surprising insight: For employees, predictable shifts and competitive social benefits are particularly important, in addition to positive feedback. This contrasts with 55 percent of managers who see feedback and recognition as the best means of retaining their team. Reliable shifts are considered important by only 16 percent, and attractive benefits even rank last with only 14 percent. These striking differences point to a breakdown in communication and too little understanding between the two groups.

"Our survey brought to light a significant and consequential communication gap within frontline companies. We call this phenomenon 'frontline disconnect.' Business leaders and executives need to find out as quickly as possible what their employees need and want in their workplace. Most leaders and teams spend their days responding. Putting out fires. Treading water. And treating symptoms. It's time to change that and focus on root causes instead," says Cristian Grossmann, summing up the need for action.

The report "Frontline 2023: Trends and Forecasts" is now available free of charge in German and English: Download here.