TriNet Releases 2024 State of the Workplace Report on Emerging Trends for Small and Medium-Size Businesses
PRNewswire 20-Aug-2024 9:15 AM
Highlights: 88% of SMB Employers Using AI for Various Functions; Only 52% of Workers Satisfied with Work-Life Balance; 85% of Employees Engaged at Work
DUBLIN, Calif., Aug. 20, 2024 /PRNewswire/ -- TriNet (NYSE:TNET), a leading provider of comprehensive human resources solutions for small and medium-size businesses (SMBs), today announced the results of an industry-wide pulse survey designed to better understand the perceptions around current and emerging workplace trends. The survey asked important questions about issues that are top-of-mind for both employers and employees.
TriNet's 2024 State of the Workplace report reveals that while SMB employers and employees are aligned in areas such as harnessing AI in the workplace, there is a gap between the two groups around overall job satisfaction and employee benefits support.
"Workplace dynamics are a key focus for both SMB employers and employees alike," said Michael Mendenhall, TriNet SVP/CMO/CCO. "This report provides insightful data, revealing that by understanding both perspectives and recognizing potential risks, employers can gain valuable insights into their workforce, while employees can better grasp how leadership views critical issues within small and medium-sized businesses."
TriNet surveyed 630 full-time employees and 588 employers from across the U.S. The research was conducted with two separate but related surveys from May 30 to June 11, 2024. The employee and employer surveys were authored by TriNet and administered by a third-party company, Qualtrics. Respondents work in one of the following industries: financial services, life sciences, main street, nonprofit, professional services, or technology. The survey focused on companies with between five to 500 employees.
Satisfaction and Engagement
Most SMB employers (61%) reported being satisfied with their work/life balance, while 52% of employees said the same. Nearly half (47%) of employees prefer a hybrid schedule, and work/life satisfaction dropped for both employers and employees who work in the office all week. Over half of workers (57%) are actively looking for a new job or are open to switching if the right opportunity came along.
A large portion (85%) of employees reported being moderately or extremely engaged with their work, similar to employers' estimate of 81%. A majority of employees (79%) report being moderately or extremely connected to their work, while 65% reported the same about connection to company leadership. Employee engagement is high across all generations, with Baby Boomers at 80%, both Gen X and Gen Z at 85%, and Millennials reporting the highest engagement at 87%. Top motivating factors include compensation/incentives, belief in company mission, interesting work/assignments, and a sense of productivity/accomplishment. The ability to work remotely is ranked as the least influential factor in employee engagement, with 17% of employees and 11% of employers considering it not influential at all.
Benefits Support
Employees highly value benefits, saying they are a top three reason for both leaving a job and considering a new one, just after better pay and growth opportunities. A majority of employees (79%) rate benefits that account for their needs as moderately to extremely important when looking for a job. The only factor rated higher is pay transparency/equity, which 80% of employees indicated as moderately to extremely important.
Medical insurance ranked #1 as the most important benefit by employees. Paid vacation/sick time, dental, retirement plans, and vision coverage rounded out the top five. Prioritization of other benefits varied by generation, particularly for employees, as they were relevant to some groups more than others. Millennials and Gen Z placed much greater importance on education reimbursement, childcare assistance, fertility coverage and parental leave.
Employers overestimated how easily employees can take advantage of their benefits programs. Fewer than two-thirds of employees reported taking advantage of their benefits, and only 58% find the technology for enrollment easy to use. The oldest and youngest employees felt differently when it came to the ease of their benefits program. Only 48% of Gen Z employees stated that they can easily access support for their benefits-related questions versus 77% of Baby Boomers. Roughly half (52%) of Gen Z employees also reported that their benefits enrollment technology is easy to use.
AI and HR Automation
AI is reshaping the workforce, both in individual job duties and more broadly across HR. Most SMB employers (88%) and employees (71%) are currently harnessing AI on the job. Technology and Financial Services sectors are adopting AI faster than Main Street and Nonprofit groups. Employees at early-stage companies are also more likely to use AI, particularly for HR-related tasks.
When it comes to HR-specific duties, one-third or more of employees are using AI frequently. One in three employees and employers would prefer to seek HR-related answers from an AI assistant over speaking with an HR administrator, citing quick responses, ease of use, and better privacy handling. Additional reasons for choosing AI include greater reliability, avoiding office politics, and avoiding personal bias.
Employers say advances in HR technology and predictive information could improve their businesses by: "improving employee morale" (37%), "increasing employee retention" (37%), "improving employee engagement" (36%), and "improving employee development" (36%).
Learn more and download the full report here.
About TriNet
TriNet (NYSE:TNET) provides small and medium-size businesses (SMBs) with full-service industry-specific HR solutions, providing both professional employer organization (PEO) and human resources information system (HRIS) services. TriNet offers access to human capital expertise, benefits, risk mitigation, compliance, payroll, and R&D tax credit services, all enabled by industry-leading technology. TriNet's suite of products also includes services and software-based solutions to help streamline workflows by connecting HR, benefits, employee engagement, payroll and time & attendance. Rooted in more than 30 years of supporting entrepreneurs and adapting to the ever-changing modern workplace, TriNet empowers SMBs to focus on what matters most—growing their business and enabling their people. For more information, visit TriNet.com or follow us on Facebook, LinkedIn and Instagram.
TriNet and the TriNet logo are registered trademarks of TriNet. All other trademarks, service marks, registered trademarks, or registered service marks are the property of their respective owners.
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SOURCE TriNet
