2018 WORKFORCE MINDSET® STUDY

Searching for a modern

employee experience
 CONTENTS

1 Design an experience with employees

in mind

2 Taking the pulse of employees

6 Employees’ wish list

10 Technology bugs

12 A failure to communicate

14 We’ve got work to do

18 Survey respondent profile

20 Contacts
 EXECUTIVE SUMMARY

Design an experience with employees

in mind

These are unprecedented times for companies and the people who make them
succeed. With economic expansion, competitive labor markets, a Baby Boomer
retirement wave looming and the rise of the robots…today, it’s more critical
than ever for you to design and deliver an employee experience that allows you
to recruit, retain and engage the best talent. The insights and analysis in the
2018 Alight Workforce Mindset® Study (WMS) can help you do just that.

• Learn how American workers are feeling about issues like their jobs, benefits
and workplace technology.
(Spoiler alert…it could be a lot better.)
• Discover surprising trends in employees’ understanding of and satisfaction
with the total rewards you provide.
(Spoiler alert…they don’t get it or appreciate it as much as you’d expect.)
• Consider five things you must do to win the hearts and minds of the people
you depend on, day in and day out, to get the job done.
(Spoiler alert…they don’t all come with a price tag.)

We heard from 2,501 employees representing the U.S. workforce.* Read on to

learn what they had to say.

* See page 18 for details

2018 Workforce Mindset Study 1

 Taking the pulse of employees

You’re a great company and you try to take

care of your people, so they should be feeling
the love, right? Well, maybe they’re not. In
fact, most workers aren’t particularly positive
about their overall employee experience, the
adequacy of their total rewards or the clarity
of your company’s employee value proposition.
The numbers show there’s a lot of room for
reflection, redirection and renewal on the part
of employers. Let’s break it down.

So what?

Even with all you’re investing in your employees, you

may not be hitting the mark. It’s no wonder people
may be ready to look elsewhere. Can you afford that
at your organization?

It’s tempting to draw conclusions on how your employee

experience should measure up, based on engagement,
uptake on specific programs, or demographics.
To maximize your investments, don’t minimize analysis.
Now’s the time to answer the hard questions using
all your data sources—and gather more data for the
questions you can’t answer.

2
 TA K I N G T H E P U L S E O F E M P LO Y E E S

Overall employee experience

3 in 10 For many of today’s workers, the overall employee experience is not meeting
expectations, nor is the experience perceived as particularly productive or
say “My overall experience inspiring. This is driving some declines in retention as well, with over half (54%)
falls below my expectations.” passively or actively considering new jobs (up 4 points from 2017). Regardless,
(falls below/falls well below) it will be important for you to know where your company stands. Clearly there’s
a need for employers to explore what’s causing the gap between expectations
and actual experiences, and then work to bridge it.

“I would rate my overall employee experience as awesome or great.”*

All employees 38%

Emerging Millennials 46%

Established Millennials 39%

Gen Xers 37%

Boomers 32%

Overall employee experience

45+55+M45%
say

“I’m likely to recommend

my company as
45+55+M45%
say

“This company provides

all I need to be fully
40+60+M
43%
say

“The purpose and culture

of the company inspires me
an employer.”** productive in my work.” to perform at my best.”

*Employees rated their experience on a 6-point scale, from “awful” to “awesome.” Figures represent those indicating “awesome” or “great.”
** F
 igures represent those indicating an 8, 9 or 10 on an 11-point scale (where 0 = “not at all likely” to 10 = “extremely likely”). This translated to a -12 employee
Net Promoter Score®, or NPS. (Note: Net Promoter Score and NPS are trademarks of Satmetrix Systems, Inc., Bain & Company, Inc., and Fred Reichheld.)

2018 Workforce Mindset Study 3

 TA K I N G T H E P U L S E O F E M P LO Y E E S

Total rewards

Compared to other employers,
my total rewards are:
34%
Above or well above
(down from 39% in 2015)
Fewer employees feel their total rewards are meeting their and their family’s
needs. Why does this matter? One reason is that employees who do perceive
their overall total rewards as meeting their needs are seven times more likely
to be engaged than employees who don’t. If people don’t feel they’re getting
what they need from you, they will certainly look for it at another employer.
Most concerning is a dramatic drop in employees’ understanding of their total
rewards— down an astonishing 27 points in three years. Prior research shows

43% that the least understood rewards tend to be incentives, wellbeing, career/
development/training and recognition programs. And, not surprisingly,
About the same understanding is highly related to perceptions of value. If they don’t comprehend
(no change from 2015) what they have, how well can we expect them to appreciate its value?

23%

54+46+P
Below or well below “This reward meets my and/or my family’s needs.” (strongly agree/agree)
(up from 15% in 2015)

Pay

Base pay 50%

50% 54% Incentive/bonus 41%

report a good understanding say their overall total pay
of their overall total rewards rewards meet their 41%
Long-term
(down from 77% in 2015) family’s needs incentives (e.g.,
stock awards)

Health, welfare and retirement benefits Work/life and other programs

Dental 63% Paid time off 62%

Retirement 62% Workplace 51%

savings plan flexibility

Vision 61% Wellness/wellbeing 50%

programs

Medical and Rx 59% Work/life programs 46%

Life and disability 58% Career, personal 44%

insurance development and
training programs

Recognition 42%
programs

4 Alight Solutions
 TA K I N G T H E P U L S E O F E M P LO Y E E S

Employee value proposition

Employees are 4x more likely to
be engaged when they view their
company’s EVP as compelling.
Another factor in how employees are feeling may be the low scores we see
for understanding their company’s employee value proposition (EVP).
Only 1 in 12 are very confident they can describe their company’s EVP.
Last year, the figure was 1 in 9—it wasn’t a great number then, and things
are moving in the wrong direction.

While employees can’t confidently describe their company’s EVP, 74%

(87% among high performers) say having a clear EVP is important to them.

A clear EVP is especially important to the younger workforce (78% among

Emerging Millennials). These workers are more likely to report seeking
job opportunities elsewhere, and they’re paying attention to other
companies’ EVPs.

My company’s EVP (strongly agree/agree)

60+40+M 62+38+M 60+40+M 65+35+M

60%
2018

“My company’s EVP is

compelling to me.”
62%
2017
60%
2018

“My company’s EVP has

characteristics that are
65%
2017

unique or special compared

to other companies.”

What’s an EVP?

An EVP is a broad collection of ambitions captured in an authentic statement

that represents the desired employee experience. It sets the direction for creating
a work environment that supports an organization’s mission, business goals
and brand promise, while empowering the organization to attract, develop and
motivate the talent it needs to achieve its objectives.

Simply put, an EVP embodies both what an organization needs from employees
and what employees should expect in return. When it resonates with the specific
type of talent a business needs, that’s what we like to call “the match.”

2018 Workforce Mindset Study 5

 Employees’ wish list

Accountability is top of mind for many

employees—they say they want employers
to “do the right thing,” both in terms of how
leaders operate the business and how the
company treats individuals.

Reinforcing a trend we’ve seen over the

past few years, employees are also looking
for balance, flexibility and fun in their
work experience.

So what?

Do you know what your employees want? You may feel

you’re hearing it through HR’s observations, program
feedback and anecdotal evidence (like the loudest voices
or most frequent comments).

But effective strategy requires specific input. Gather

baseline information through pulse surveys, spot polls,
focus groups and other simple research. Listen to
the language your employees use—then test your
understanding and ideas.

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 EMPLOYEES’ WISH LIST

Accountability

On employees’ wish lists, 2018 was a year when political divides, privacy concerns and corporate
continuous improvement, accountability dominated the media. In fact, many companies took very public
compassion, ethics and stands on social issues. Accountability as a desired characteristic has steadily
integrity are new to the top 10. risen from 8th in 2015 to 2nd this year. The heightened attention given to “doing
the right thing” appears to be ingrained in employee thinking. Workers want
their companies to be ethical and honest, and they themselves want to be
treated fairly and respectfully.

Top characteristics of desired employee experience

1 Balanced (home/work) 6 Employee recognition-oriented

2 Accountable 7 Compassionate

3 Honest 8 Respectful

4 Continuously improving 9 Trustworthy

5 Ethical 10 Fair, having integrity (tie)

Differentiators

Fun, flexibility, and better rewards continue to be top characteristics that can differentiate one employer from
another (since 2016). Innovation and stimulating work closely follow, with stimulating work moving up the list
from 8th place in 2017.

“This really differentiates one employer from another.”*

59% 59% 59% 57% 55% 55%

is a fun place has a provides provides better is an innovative provides
to work flexible work better than than average organization stimulating
environment average pay benefits work

*Figures represent those citing each as more likely to differentiate rather than as an expectation from most employers on a 4-point scale.

2018 Workforce Mindset Study 7

 EMPLOYEES’ WISH LIST

Balance and flexibility

“I would not consider a job that “Balanced (home/work)” is something 31% of respondents say they’d like their
provided less flexibility than employer to be—the number-one answer. Flexibility is also critical to workers
I have today.” across employee segments (including generations) and, like fun, has a highly
(strongly agree/agree) individualized definition.

59% 49% When asked what they would value in terms of flexibility as part of their work
experience, employees respond with answers ranging from personal needs
High Other to professional development:
performers  performers 
• “Great work schedule, working my own hours and always getting 40 hours
every week no matter what.”
• “The ability to take on other roles from time to time.”
• “Volunteer time off in addition to worker pay.”
• “Being able to spend time with my family.”
• “More ability to change my schedule.”

Employees desire flexibility to such a degree that 51% say they would not
even consider a job that provides less flexibility than what they have
today. Those who would consider a job with less flexibility say it would take,
on average, a 31% pay increase to make up for the flexibility loss.

How much more base pay would get you to take a new job that doesn’t provide desired flexibility, assuming everything else
would be exactly the same?

Emerging Established All

Base pay increase required Millennials Millennials Millennials Gen Xers Boomers

0%
2% 1% 1% 3% 3%

1%–10%
7% 7% 7% 7% 11%

11%–20%
14% 15% 15% 17% 15%

21%–30%
33% 29% 30% 27% 27%

31%–40%
21% 21% 21% 17% 17%

41%–50%
24% 27% 26% 30% 26%

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 EMPLOYEES’ WISH LIST

Fun

As one respondent put it,  “A fun place to work is where you like the people. I’m
not talking about beanbag chairs and pool tables.” Fun at work is about the
environment you provide, the experience you create, and the camaraderie you
encourage and engender. So what do employees tell us “fun” really means?

• It’s about the collective experience, not the individual experience. Events and
social activities pay off with stronger employee relationships and enhanced
collaboration.
• A free-to-be-me atmosphere, a place where people are authentic, friendly
and open, so they can work and laugh together in an enjoyable environment.
• Coworkers who are dedicated, collaborative and fun to be with.
• Challenging, innovative and stimulating work.

What does “a fun place to work” mean for you?

“The work I do has

“Enjoyable people, to be engaging. I want
“Anywhere
after-work functions to solve hard, interesting
creativity is
that bring employees problems, and a company
encouraged.”
together.” that lets me do that
is exciting to me.”

“A place where
employees can
“Non-stressful.
actively engage and
Empowered to
feel like they’re
make decisions.” making a big
impact together.”

2018 Workforce Mindset Study 9

 Technology bugs

In the ’80s, Madonna may have lived in a

material world, but these days we live in a
digital one. In 2018, the average American
spent more than 11 hours a day engaged with
technology and media (Internet-connected
devices, radio, TV, games and so on).*

We have grown to depend on (and demand)

instant access to everything in the world—
facts, figures, news, entertainment, connection
to our communities, you name it.

So what?

Come on, admit it. You’ve yelled at some screen at least

once today. Satisfying? Maybe. Productive? Not so much.

If you want your workforce to move at the speed of life,

you need to understand what’s working and what’s
working against you. While knowing the latest and
greatest on the market is important for benchmarking
and strategy, take a hard look at internal data to learn
the real story about your technology—how it works and
what employees think about it.

* 1st Quarter Nielsen Total Audience Report (https://www.nielsen.com/us/en/

insights/news/2018/time-flies-us-adults-now-spend-nearly-half-a-day-inter-
acting-with-media.print.html)

10
 TECHNOLOGY BUGS

39% But when it comes to the tech they have at work, employees are feeling a little
“so last century.” As tech providers continue to raise the bar on speed, access
say HR systems/platforms and relevant content, employees want you to do the same.
are easy to use.
Is it worth the investment in time, money and effort to upgrade your tech tools?

38% Consider this: Employees are five times more likely to be engaged when they
feel HR systems and platforms are easy to use, and six times more likely to be
say HR systems/platforms engaged when they see systems as effective.
are effective.
(strongly agree/agree)

“My experience with work technology almost always or often...”

50+50+M 42+58+M 31+69+M

50%

Enables productivity
42%

Matches my technology
experience outside
of work
31%

Frustrates me

What employees are looking for

#1 request: 2 in 3 1 in 4
a one-stop destination employees value mobile managers wish they had
for HR and benefits access to the company more employer support
information and intranet (but 70% don’t or time for improving
transactions have it) technical skills

2018 Workforce Mindset Study 11

 A failure to communicate

Effective communication and collaboration

continue to be viewed by most as expectations
from any employee experience. However,
the reality falls short in workers’ perception.
In an era of transparency and authenticity,
employer communication just isn’t breaking
through. Perhaps it’s information overload…
but employees still don’t know where to go, and
they often don’t trust what they are hearing.
If communication is key, how will you use it to
unlock the door to engaging with your people?

So what?

It appears that communication channels in many

workplaces are falling short. In the end, it really doesn’t
matter what you say or how often you say it if half
of your people aren’t hearing you.

A comprehensive communication review is a great way

to identify all the tools in your toolkit, examine their
effectiveness, and then simplify, streamline and
strengthen your approach. You could find opportunities
for big impact with relatively minimal effort.

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 A FA I LU R E T O C O M M U N I C AT E

Employees are 13x more likely to be Across the past three years, communication and collaboration have been
engaged when they feel: employees’ top expectations of all employers. However, expectations and
experiences are not quite matching up, and perceptions are declining.
• Well informed about matters
that are relevant to them
• The communication they “I expect this from just about any employer.”
receive is open and honest

#1 #2
Communicates Encourages collaboration
effectively (58%) and teamwork (57%)

Communication: Not connecting (strongly agree/agree)

2018 2017 2016 2015

I know where to go to find information 62% 68% 68% 71%

on pay, benefits or HR topics

The amount of communication/ 49% 53% N/A N/A

information I’m expected to read
and understand in a given timeframe
is reasonable

I feel well informed on matters 44% 48% 48% 49%

that are relevant to me

I feel encouraged to share my ideas 43% 48% 45% 47%

and opinions with others

The communication I receive 44% 47% 47% N/A

is open and honest

2018 Workforce Mindset Study 13

 We’ve got work to do

A great overall employee experience is critical

to attraction, retention and performance.
Designing a great experience requires us to
really understand what the workforce expects,
what it wants and what can truly delight it.

14
WE’ VE GOT WORK TO DO

Here are five things every company must do to translate what employees
want into actions you can take to meet their expectations and needs.

1. Make your workplace and work experience more modern and human.
Employees who rate their overall employee experience positively are
five times more likely to be engaged. Ask yourself the following questions.
Be honest in your answers, and then work to make improvements
where needed.

• How do employees rate the overall employee experience, and how

are we delivering on the key drivers of that experience?
• What programs, policies and resources truly enable a meaningful
balance between life at home and life at work?
• How are we defining and incorporating flexibility into the
work experience?
• What are we doing to enable fun in the overall employee experience?

2. Find what makes you special—really special—and tell your story.

Dust off your EVP. Does it reflect who you are today and who you’re
working to be tomorrow? Does it clearly, concisely speak to what
employees are looking for? Do they know that you have an EVP?
(If so, only 8% can clearly express it…it can only get better from here!)
If you don’t have a well-crafted, well-communicated EVP, there’s never
been a more critical time to build one. Then shout it from the rooftop
and work to deliver on it consistently every day.

3. Tune up your tools.

Make sure all your tech, communication and people-to-people resources
produce simple, connected, and aligned experiences. Workers are hungry to
connect with coworkers and quickly access relevant information, insightful
data and new ideas. How do your on-the-job tools measure up to the ones
people use in their off-the-job world? When a third of employees say their
work technology always or often frustrates them, what does that say about
their ability to finish the work their job requires?

2018 Workforce Mindset Study 15

 WE’ VE GOT WORK TO DO

4. Empower your managers.

Only half of managers say they have the tools, resources and information
needed to have valuable conversations with direct reports about what they
like/dislike or what engages/disengages them about their job or company.
What impact does that have on employee satisfaction and engagement?
Managers need active personal support and specific direction (not only
self-service tools) to maximize their role in leading the organization
and developing employees.

5. Ask. Listen. Act. Repeat.

It should go without saying that workers want to be included, heard and
valued. But the truth is that a huge portion of your employee population
isn’t feeling the love. Consider this:

• Four out of five employees say they expect their manager to show that
he or she cares about them as a person, but only half of respondents
say their manager does.
• Fewer than half of employees say their manager values their input and
opinions about matters that affect them.
• Only 37% of Boomers feel encouraged to share their ideas and opinions.
The cumulative intellectual capital, experience and “wisdom of the
ages” you’re missing out on may be critical.

The good news is that this is a situation with a solution. Use every resource
at your disposal—surveys, performance management conversations, town
halls, good old-fashioned suggestion boxes, exit interviews—to solicit input
about what’s working and not working within the design of your employee
experience. Then don’t take offense or take the feedback personally.
Take action instead.

16 Alight Solutions
We’ve got work to do

By fulfilling the needs and inspiring the spirit, a great

employee experience awaits.

With rapid market and technology changes—along with the

rise of artificial intelligence bringing both hope and fear—it can
be daunting to consider the entire employee experience and
design a great one. Yet Millennials and their younger siblings,
Centennials, have made it clear that it is not the “thing,”
but the experience, that matters most.

So what does this mean for your organization? In seeking deeper

human insights and applying data and friendly technology
in ways that bring new opportunities to the human condition,
leaders can create great experiences for their employees…
and thereby drive superior advantage and performance.

We can almost hear workers saying, “A great employee

experience is one that fulfills my needs AND inspires
my spirit.” We’ve got work to do, so let’s get to it!

17
 Survey respondent profile

2,501 Gender Industry of employee

respondents with Females 50% Business services and 10%

nearly 8 million construction
Males 50%
employees Financial services and insurance 12%

Generation Health care 19%

1,000+ Millennials 49% Manufacturing and energy 14%

5%
employees per 19% Media, entertainment
Emerging Millennials
company and leisure
Established Millennials 30%
Public sector 10%
Gen Xers 24%
Retail and wholesale trade 19%
Boomers 27%
Technology 8%

Utilities and telecommunications 4%

Company size

13% Personal income

1,000–1,999
2,000–4,999 22% <$35,000 21%

5,000–9,999 20% $35,000–$64,999 34%

10,000–24,999 17% $65,000–$99,999 30%

25,000 or more 28% $100,000 or more 16%

Tenure

<2 years 20%

2–<6 years 28%

6–<10 years 18%

10–<20 years 22%

20 or more years 12%

18 Alight Solutions
Alight’s mindset research

Alight Solutions’ Consumer Experience practice is pleased to offer a suite of

“mindset” research. Our research provides a comprehensive view of what
employees are thinking to help our clients understand how to optimize the
employment experience to drive employee engagement as well as productivity
and performance. For more information, please visit alight.com.

The fourth annual Workforce Mindset® Study described in this report is part
of this mindset series, along with Alight’s Health and Financial Wellbeing
Mindset Study. The study aims to provide insight into what employers can do
to improve employees’ wellbeing, drive greater engagement in benefits and
wellbeing programs, and facilitate smarter planning and actions.

2018 Workforce Mindset Study 19

 Contacts

We at Alight Solutions are grateful to have the opportunity

to bring you insights into the employee experience for
the fourth year. Feel free to contact us if you would like
to discuss any aspect of the research or to help you design
your own fulfilling and inspiring experiences.

Laine Thomas Conway

Vice President, Consumer Experience
laine.thomas@alight.com

David Stuart
Senior Consultant, Consumer Experience
david.stuart.3@alight.com

Ray Baumruk
Vice President, Consumer Experience
ray.baumruk@alight.com

Christin Devcich
Senior Consultant, Consumer Experience
christin.devcich@alight.com

We gratefully acknowledge the valuable contributions

of many other colleagues at Alight and our partners
at Kantar Consulting in creating this report.

The information contained herein and the statements expressed are

of a general nature and are not intended to address the circumstances
of any particular individual or entity. Although we endeavor to provide
accurate and timely information and use sources we consider reliable,
there can be no guarantee that such information is accurate as of
the date it is received or that it will continue to be accurate in the future.
No one should act on such information without appropriate professional
advice after a thorough examination of the particular situation.

© 2018 Alight Solutions

20 Alight Solutions
About Alight Solutions
As the leading provider of human capital
solutions, we help our clients and their people
navigate the complexity of health, wealth
and HR. We combine data-driven, consumer-
centered technology with personalized care
and service to deliver a superior customer
experience. Our dedicated colleagues across
19 global centers help more than 22 million
people and their 18 million family members
simplify work and life, both now and in the future. 

At Alight, we are reimagining how people

and organizations thrive.

alight.com