The 2024 Workplace Wellness Survey published by the Employee Benefit Research Institute (EBRI) and Greenwald Research finds U.S. military veterans report higher levels of financial, social, emotional, and workplace well-being than their nonveteran counterparts. Veteran workers were more likely to report that they were intending to stay with their current employer for the immediate future. The fifth annual Workplace Wellness Survey examined worker attitudes toward employment-based benefits in the workplace, as well as a broad spectrum of financial and mental well-being, employment-based health insurance, and retirement benefit issues. The oversample of U.S. military veterans was included to better understand their opinions about their employer and how they value workplace-sponsored benefits, as well as the challenges they face balancing work, life, and their finances. “In general, veterans differed in several ways from nonveteran workers,” said Jake Spiegel, EBRI research associate, health and wealth benefits research. “They tended to be better positioned to weather short-term financial challenges, were more likely to be satisfied by their employer’s benefits offerings and had a rosier assessment of their employer’s efforts to improve their financial wellbeing. However, veterans still face similar issues in the workplace as nonveterans. Veterans and nonveterans alike were similarly worried about the effects of their employer implementing layoffs, reducing hours, or reducing wages. Also, they are just as likely as nonveterans to be concerned about their household’s financial well-being.” Veterans face similar stress outside of the workplace as nonveterans. While they were less stressed by paying bills or the amount of debt they had than nonveteran workers, they were more likely to report being stressed by financially supporting loved ones and paying for caregiving services for either an adult or a child. “While concern over workplace well-being has been trending downward in recent years, about half of American workers still report being either moderately or highly concerned about their household’s financial well-being,” said Greg Hershberger, Greenwald Research managing director, healthcare and benefits. “Veteran workers are slightly more optimistic about their household’s financial well-being but face challenges of their own. Encouragingly, veteran workers overwhelmingly reported feeling comfortable informing their employers of their status as a veteran, which helps when separating from the military, as some employers express a preference for hiring veteran applicants. Also, veteran workers were no more likely to report feeling stressed about saving enough for retirement, despite most veteran workers separating from the military before they are eligible for full military retirement benefits."
A recent Gallup poll of U.S. employees found the four most important reasons for taking a new job are to: Improve work-life balance and personal wellbeing Gain better pay or benefits Achieve stability and job security Work in a role that allows you to do what you do best Employees are watching for or actively seeking new job opportunities at the highest rate since 2015, with more than half (51%) exploring new options. Organizations that align with these four expectations have a strong foundation for selling or reselling talented individuals in their workplace. At the same time, employee satisfaction is at a record low, fueling what Gallup calls the Great Detachment: an era in which people are feeling increasingly disconnected from their employer. In turn, employees are feeling stuck with their discontent. For employers, this means that while turnover numbers may have slowed, employee productivity concerns and future talent loss are hidden organizational risks. In addition, when employees feel detached from their work, organizational change initiatives are likely to meet indifference or resistance. Understanding what employees value most in a job provides a strong foundation for improving an organization's recruiting, retention and employee value-proposition strategies.
Women tend to build less human capital through work experience than men who start in the same occupations, as seen in the tens of thousands of career trajectories McKinsey & Co. analyzed. Over a 30-year career, the gender pay gap averages out to approximately half a million dollars in lost earnings per woman. Additionally, one-third of that work experience pay gap is because women accumulate less time on the job than men. Women average 8.6 years at work for every ten years clocked by men because, on aggregate, they work fewer hours, take longer breaks between jobs, and occupy more part-time roles than men, McKinsey & Co. reported. The other two-thirds result from different career pathways that men and women pursue. Men and women averaged 2.6 role moves per decade of work and crossed comparable skill levels in each new role. However, women are more likely than men to switch to lower-paying occupations, typically ones involving less competitive pressures and fewer full-time requirements, according to McKinsey & Co. As women switch jobs, they are less likely to move into occupations projected to grow in demand, the research firm said, instead often moving into shrinking occupations. Should current occupational pathways persist, by 2030, more than three-quarters of working men would be in occupations projected to grow relative to today, compared with less than two-thirds of women. In turn, McKinsey & Co. projects the overall gender pay gap could remain at current levels.
Latino-owned small and medium businesses (SMBs) are growing rapidly, according to a new McKinsey & Co. report. Latinos start more businesses per capita than any other U.S. racial or ethnic group. In 2023, they created 36% of new businesses in the states—nearly double their representation in the overall population. According to the U.S. Census Bureau, 19% of the U.S. population is Latino or Hispanic, and that number is expected to grow to 28% by 2060. Still, Latino-owned SMBs comprise only 7% of total small-business firms with employees, and 17% of non-employer firms (which have no employees and are mostly sole proprietorships). However, 99% of Latino-owned businesses are considered small businesses. A supportive environment, McKinsey said, could pave the way for the creation of more than 600,000 new businesses, potentially bringing in about US$1.2 trillion in revenue and creating 5 million to 6 million jobs in the coming decades. Latino SMBs’ owners also skew younger, which McKinsey said offers great opportunities for long-term business growth. Additionally, the education level of these young entrepreneurs continues to increase with 20% of Latinos nationwide achieving a bachelor’s degree. Still, Latino SMBs have more challenges than non-Latino SMBs scaling up enterprises, hiring and retaining talent, and gaining access to funding, McKinsey reported. For example, in 2023, Latino-owned businesses accounted for 15% of credit applications on online lender Biz2Credit, up from 12% in 2022. Additionally, the average credit score of Latino business owners improved from 632 in 2022 to 647 in 2024, a sign that these businesses are becoming more financially stable and more creditworthy, McKinsey said.
Hospitality and leisure businesses were hit hard by the COVID-19 pandemic. However, by March 2024, hospitality and leisure employment had climbed back to its pre-pandemic level. In fact, industry workers today stand out as big winners when it comes to wage growth, according to ADP Research’s quarterly Today at Work report. According to the report’s wage data analysis, since November 2018, wages for hospitality and leisure industry new hires have jumped more than 38%, a gain second only to trade and transportation. By November 2023, the median wage for new hospitality and leisure hires was US$15 an hour. Interestingly, ADP Research also found that since December 2022, hospitality and leisure job-stayers have recorded larger year-over-year pay gains than industry new hires. Typically, people who quit their old jobs for something new enjoy bigger wage increases than workers who stick with their employers. However, in September 2024, year-over-year pay for job-stayers was up 4.6%, compared to 3.3% for job-changers, according to ADP Research. Why? ADP research found hotels, restaurants, and other employers were forced to work harder not only to acquire talent but retain it. As they raised wages for new hires, they also boosted pay for experienced employees. Hospitality and leisure was the only sector to claim double-digit annual pay gains for job-stayers between November 2021 and February 2023.
Most workers (70%) said they currently have the education and training they need to get ahead in their job or career, according to a new Pew Research Center survey. Only 30% said they need more education and training. The study found that regardless of whether workers said they need it, 51% said they have received training in the past 12 months, while a similar share (49%) said they have not. Among workers who say they need more education and training, 28% said learning on the job would be the best way for them to get it. About a quarter said completing a certificate program (24%) or getting more formal education (24%) would be the best way. Among workers who need training but didn’t get any in the last year, many point to time and resource constraints as major reasons for not doing so. More than four-in-ten (43%) said they couldn’t find the time, while 38% said they couldn’t afford it, and 28% said their employer wouldn’t cover the cost. Regarding income levels, 41% of workers with lower incomes and 43% of those with middle incomes who said they need but did not get training said they couldn’t afford it. Only 11% of upper-income workers said the same.
In 2024, employee engagement reached an 11-year low, employee satisfaction returned to a record low, and employees were seeking new jobs at the highest level since 2015, Gallup found. Why are workers feeling this way? Gallup found seven in 10 employees (73%) said their organization has experienced some level of disruptive change during the past year. The more disruption employees experienced, the more likely they are to feel burned out. Managers are reporting disruption from the restructuring of teams (55%) and additional job responsibilities for employees (69%), while nearly half (46%) report budget cuts. Most (56%) of employees report also noticing changes in customer expectations since the pandemic, with 71% of those employees attributing changes to more demanding customers or higher expectations for a better digital experience. The pandemic also caused many workers to reevaluate what they want from their career and employer. Work-life balance and better compensation packages became more significant to employees, along with expectations for remote work flexibility. Additionally, most leaders said they have very little confidence in their performance management systems, leaving organizations without a reliable way to clarify expectations, align teams, recognize achievements, and develop employees, Gallup found. Gallup suggested that employers should offer clarity of work expectations and reconnect employees to the company’s mission and purpose.
Unsurprisingly, building and grounds cleaning and maintenance occupations rank fourth among the professions with the lowest percentages of employees working fully remotely. An analysis of U.S. Bureau of Labor Statistics from October 2024 by digital mailbox provider iPostal1 found that building and grounds cleaning and maintenance professionals have 1.1% of the 5,597,000 employees working fully remotely, which equates to 60,000 people. The data also revealed that 150,000 employees in this field partially work from home. iPostal1 created a ranking based on the occupations with the highest and lowest percentages of employees working fully remotely. Overall, food preparations and serving related occupations have the lowest percentage of fully remote workers, with just 0.4% working from home. Of the total 7,702,000 people with this occupation, 27,000 work remotely and 80,000 work remotely and in-person. Construction and extraction occupations are second, with just 0.6% of employees working from home. With 8,431,000 employees in this occupation, 54,000 work fully out of office and 198,000 work some of their hours at home. Transportation and material moving occupations have the third lowest rate of remote workers, with just 0.9% (107,000) of its 11,734,000 employees working all their hours remotely, and 117,000 working some hours remotely. In total, 17,338,000 full-time employees in the U.S. work remotely, 19,893,000 work partially remotely, and 119,418,000 employees do not work from home at all.
A record 88 jurisdictions—23 states and 65 cities and counties—will raise their minimum wage floors by the end of 2025, according to the National Employment Law Project (NELP). In 70 of these jurisdictions (nine states and 61 cities and counties) wages will reach or exceed US$15 an hour for some or all employees; in 53 jurisdictions (two states and 51 cities and counties) the wage floor will reach or exceed $17 an hour. On Jan. 1, 21 states and 48 cities and counties will raise their minimum wages. Additionally, five states and 23 cities and counties will increase their minimum wages later in the new year. A growing number of states and localities are increasing their minimum wages to $15 an hour or above, USA Today reported. New York, California, Massachusetts, Washington, Maryland, New Jersey, and Connecticut are already there. On Jan. 1, Illinois, Delaware, and Rhode Island will increase their state minimums to $15. Oregon also will increase to $15 in July because of a cost-of-living rise. Other states are raising their minimums but are shy of $15. Missouri’s minimum will grow to $13.75 and Nebraska’s minimum to $13.50. Nebraska’s minimum wage will increase to $15 on Jan. 1, 2026. Additionally, Alaska, Florida, Hawaii, and Missouri will reach a $15 minimum by 2026 or 2027. In total, 16 states—Alaska, California, Connecticut, Delaware, Florida, Hawaii, Illinois, Maryland, Massachusetts, Missouri, Nebraska, New Jersey, New York, Rhode Island, Oregon and Washington—are on a path to a $15 (or higher) minimum wage, NELP reported. Additionally, California and New Jersey will raise their minimum wages for some healthcare workers, including janitorial work in California, to $18 and above. Regarding local governments, 47 localities will also hit or top $15 on Jan. 1, including more than four dozen in California, most of which will climb higher than $18. Burien, Washington—already subject to the state’s $16.28 minimum pay—will jump to $21.16 for employers with 500 or more workers in King County, making it the nation’s highest minimum wage. On the other hand, the federal minimum wage has been stagnant at $7.25 an hour since 2009. Nearly 30 states housing about 60% of the U.S. workforce have higher minimum wages than the federal limit.
A newly released survey shows Canadians are consistently drawn to employment that offers a sense of purpose and intrinsic rewards alongside traditional compensation. Among a survey of more than 1,500 Canadian adults, most (85%) felt employee wellbeing is a human right, according to First Onsite Property Restoration’s Workplace Values Index. Essentially the same number was recorded in a similar survey in 2023. Women are more likely to feel employee wellbeing is a human right than men (89% versus 82%). Meanwhile, three-quarters of Canadians (77%) would like to work in an industry where they are helping people, which is identical to the findings of the 2023 survey. Again, women are more likely to feel this way than men (81% versus 74%). “A few insights emerge from the year-over-year survey comparison,” said Leah Pearson, First Onsite Property Restoration director of talent acquisition. “The desire for helping people through their work remains strong among Canadians. It is becoming increasingly vital for HR and culture leaders to prioritize both the individual needs and overall wellbeing of employees.” The below table includes the questions included in the survey and a comparison to last year’s findings: “Once they join an organization, employees seek both external purpose and internal growth,” Pearson said. “They want to develop their skills, advance their careers, and feel valued. Organizations need to reach their employees where they feel appreciated—and support them as they evolve.” “It is one thing to attract the right candidates to an organization,” she added. “It is a completely different set of challenges to ensure their sense of wellbeing and purpose is being fulfilled.”
The U.S. Department of Labor (DOL) published a guide designed to educate employers about the benefits of using skills-first hiring practices and encourage them to use those practices to build a more qualified workforce. The Good Jobs Initiative’s Skills-First Hiring Starter Kit was announced at the White House’s Classroom to Career Summit, where President Biden and First Lady Jill Biden welcomed nearly 300 education and workforce leaders to announce new actions on workforce, career, and technical education. The Skills-First Hiring Starter Kit, developed in partnership with the U.S. Department of Commerce, is a short guide to hiring, promotion, and management built around worker skills, rather than relying on degree qualifications. “Skills-first hiring practices can be a way of helping workers get ahead through good jobs,” said Julie Su, the DOL’s acting secretary. “Our Starter Kit provides the blueprint for employers to take concrete steps to begin skills-first hiring and provide economic opportunity for workers who face barriers—not because they are not highly skilled—but because of where they attained those skills.” Skills-first hiring—also known as “skills-based hiring”—refers to the hiring or promotion of workers around demonstratable skills, knowledge, and abilities, regardless of how or where workers attained those skills. The department’s Good Jobs Principles promote skills-based hiring as a quality recruitment practice. While many employers have removed four-year degree requirements for salaried jobs, employers still struggle to implement skills-first hiring strategies after ending those requirements. The Starter Kit aims to give private employers more information on skills-based hiring so that they can successfully implement these practices in the workplace.
The U.S. Department of Labor (DOL) has obtained a judgment and order in federal court that recovers more than US$2.4 million in back wages and liquidated damages from Massachusetts and Pennsylvania healthcare staffing agencies that denied 341 employees overtime wages, including employees misclassified as independent contractors. Filed by the department’s regional Office of the Solicitor in Boston, the complaint names Malden, Massachusetts-based Gate Solution Systems, some of its officers, and managers, and joint employer Healthcare Services Group of Bensalem, Pennsylvania. It alleges that Gate Solution Systems hired the employees to provide cleaning, laundry, and dietary assistance services, under the supervision of Healthcare Services Group, at various healthcare facilities. The department’s Wage and Hour Division found that Gate Solution Systems Inc. misclassified housekeepers, laundry, and dietary workers as independent contractors. The employees in this case provided services at healthcare facilities in Maine, Massachusetts, New Hampshire, and Vermont. Employees were not paid the required overtime rate when they worked more than 40 hours in a workweek. “Misclassification of employees as independent contractors remains a serious concern for the Department of Labor,” said Jessica Looman, Wage and Hour administrator. “Preventing and combating misclassification is a priority for the Wage and Hour Division as it deprives workers of their rights to full wages, health and safety protections, unemployment insurance, workers’ compensation, and tax protections.”
