With risk of attrition on the rise, organizations that lack
critical insights face millions of dollars in potential workforce
investment losses
AUSTIN, Texas, March 28, 2024 /PRNewswire/ -- The ActivTrak
Productivity Lab today released its 2024 State of the Workplace:
Emerging Technology & Employee Engagement Trends, a study
of digital workplace behaviors revealing that 20% of employees are
disengaged1 due to ongoing
underutilization, a 67% increase since 2021. Meanwhile, 7% of
employees risk burnout due to overutilization. With nearly 30% of
workers at risk of attrition due to workload imbalance,
organizations face millions of dollars in potential workforce
investment losses.
With nearly 30% of workers at risk of
attrition due to workload imbalance, organizations face millions of
dollars in potential workforce investment losses.
The cost of replacing an individual employee can range from
one-half to two times the employee's annual salary. Assuming an
average voluntary turnover of 20%, a 1,000-employee organization
with 27% attrition could lose an additional 70 employees — equal to
$2.1M in replacement costs — due to
workload imbalance.2
The Productivity Lab examined three years of anonymized insights
based on 958 companies, 135,098 users and 96,912,446 hours worked,
representing one of the most direct and objective studies of
productivity based on actual behavior (versus self-reported
surveys). The study reflects user behavior examined from
Jan. 1, 2021 to Dec. 18, 2023 across productivity, engagement and
technology adoption.
Key Findings
Engagement findings show that 27% of employees risk
attrition due to burnout or disengagement.
- 20% of employees were disengaged in 2023, up 67% since
2021
- 7% of employees risked burnout due to overutilization, down
slightly since 2021
- 4% of employees worked on weekends, down from 5% in 2022
Productivity findings show that employees completed their
work in less time.
- The workday got 15% shorter (-47 min) from Q1 2021 to Q4
2023
- Employees were +8 min/day more productive in the first half of
2023 vs. the second half
- Time spent on collaborative activities such as chat and
messaging increased slightly
- Total digital activity, productive time and focus time stayed
relatively constant
Technology findings show that industry, company size
and workplace environment influenced AI tool adoption.
- 22% of employees used AI tools in 2023, an increase of 50% from
Q1 to Q4
- Telecom (34%) and Legal Services (32%) had the highest AI tool
adoption (≥ 25% of employees)
- Across any given industry, 1 in 10 employees used AI tools,
with Financial Services using the most
- Slightly more employees in mid-market organizations (23%) used
AI tools compared to their larger (21%) and smaller (21%)
counterparts
- Employees were 5% more likely to use AI tools when working
remotely than when working from the office
- Across 23 industries, ChatGPT was the most used tool in all but
one (Legal)
And while AI usage increased, there was no apparent impact on
productivity when comparing employees who used AI tools to those
who did not. This may be attributed to early exploration and
experimentation that have yet to produce meaningful results.
"There are positive signals in this year's report, with shorter
workdays and productivity remaining steady. Burnout is declining,
hopefully, because employers are adopting the right initiatives. On
the other hand, disengagement is growing, which must be a key
concern for leaders in 2024. Businesses that get the future of work
right must revamp their approach to understanding where these risks
exist across their organizations," said Gabriela Mauch, vice president of ActivTrak's
Productivity Lab. "Answering these questions can help organizations
make better use of untapped workforce capacity and improve business
outcomes."
To learn more about the ActivTrak Productivity Lab and how
organizations can better anticipate and plan for the future of
work:
- Download the report: 2024 State of the Workplace: Emerging
Technology & Employee Engagement Trends
- Read the blog post
- Attend the LinkedIn Live event
About the ActivTrak Productivity Lab
The Productivity Lab is a center for research and expertise on the
future of work. Through reports, benchmarks, assessments and best
practices, we provide an in-depth understanding of workforce
activity data across people, processes and technologies. This work
is delivered through consulting and advisory services that help
leaders across industries identify trends, improve performance and
validate workforce investments – ensuring workforce productivity is
sustainable and optimized for success. Productivity Lab findings
have informed the work of leading industry analysts, media and
research organizations. To learn more visit:
https://www.activtrak.com/productivity-lab.
About ActivTrak
ActivTrak helps organizations make
data-driven decisions to improve hybrid work. Our workforce
analytics platform provides visibility that improves team
productivity and performance, ensures compliance with policies and
expectations, and informs allocation of workforce investments. More
than 9,500 customers trust ActivTrak's unique privacy-first
approach and award-winning technology which has been recognized by
the Deloitte Technology Fast 500, Inc. 5000 and G2 'Best Of'
category awards. ActivTrak is backed by Elsewhere Partners and
Sapphire Ventures. To learn more visit:
https://www.activtrak.com/.
1 Employees at risk spend >75%
in an underutilized state
annually.
2 Based on 20%
annual voluntary turnover and replacement
costs equal to half of a $60K annual salary.
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SOURCE ActivTrak