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The modern workplace is facing a productivity crisis as workers lose interest in their current roles. A staggering 79% of employees are disengaged at work, according to a recent study of more than 1,100 U.S. employees from MyPerfectResume, a CV platform.
One of the major reasons for this lack of motivation is low pay; 33% of respondents say it’s a primary source of this apathy, followed by misalignment in values (23%), and unclear expectations (14%).
“Companies should take this data as a wake-up call and start taking employee compensation seriously,” says Jasmine Escalera, career expert at MyPerfectResume.
That means reassessing their current pay structures to ensure they align with market rates for talent, she says. Companies should also conduct regular compensation reviews, and consider handing out bonuses or raises outside of the annual performance-based raise. That can help employees feel valued, especially when they’re taking on additional work beyond their standard roles.
But there are also other tools beyond financial incentives that can help employers address the disengagement crisis. Around 47% of employees surveyed want better work-life balance and flexibility, making it essential for companies to rethink return-to-office policies and flexible work arrangements. This is especially pivotal considering that workplace stress is high, according to the report, with around 49% of employees citing high workloads as their top stressor. While around 45% of employees say they need better pay and benefits, 47% say they desire better work-life balance or increased flexibility.
Workers are also looking for help from their managers to be more productive. Around 44% say clearer communication and better direction from leadership would help them stay engaged during the workday.
Escalera recommends that HR leaders consider creating incentive programs, expand professional development opportunities, and advocate for regular compensation reviews to ensure employee pay remains competitive and fair.
“When HR actively listens and responds, they can implement meaningful changes in the workplace that align more precisely with what employees desire,” she says.
Brit Morse
brit.morse@fortune.com
Around the Table
A round-up of the most important HR headlines.
The daughters of one of Target’s cofounders say they’re shocked and dismayed at the company’s recent decision to rollback DEI initiatives. Business Insider
There are multiple ways leaders can encourage employees to voluntarily resign without losing the company’s best people, or destroying its culture. The Economist
Top officials from the U.S. Education Department said that during the president’s prior administration he routinely hailed the same diversity efforts he now aims to dismantle. New York Times
Watercooler
Everything you need to know from Fortune.
Toxic positivity. A top neuroscientist says that negative emotions can be just as motivating as positive ones, if done correctly. —Ethan Kross
Cybersecurity concerns. Elon Musk announced DOGE’s new website and within a matter of days, hackers took control. —Chris Morris
New rules. Young professionals are comfortable breaking traditional workplace norms by wearing what they want to the office and setting boundaries with their managers. —Emma Burleigh
