ADP Research Institute Releases 2019 State of the Workforce Report: Pay, Promotions and Retention, Providing Unprecedented View of the Organization of U.S. Firms

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[{"type":"text","content":"ROSELAND, N.J., April 16, 2019 /PRNewswire/ -- The ADP Research Institute today released the 2019 State of the Workforce Report: Pay, Promotions and Retention. The study provides comprehensive, data-driven organizational benchmarks derived from the aggregated and anonymized actual HR and payroll data of U.S. workers. The inaugural report shares pay, promotion, and hierarchy insights, inclusive of all industries and firm sizes of at least 50 employees. The results are further examined by age, gender, firm size, and tenure. \nThe report uncovers key insights pertaining to business leaders and the HR community at large. It was designed to help employers gain a better understanding of the hierarchical structure of organizations, pay levels, how pay and promotions are connected and how employers retain workers throughout their organizations. Based on payroll from more than 13 million employees, the research provides details about how firm hierarchy, promotions, turnover and span of control is vital to understanding relevant labor market trends.\n\"Employees are a firm's greatest asset, and the data presented in the State of the Workforce report provides an opportunity for firms everywhere to improve organizational design, better serve their employees, and grow their business,\" said Dr. Ahu Yildirmaz, co-head of the ADP Research Institute. \"When making key workforce decisions, it is critical for business leaders to know, for example, that the average number of direct reports per manager is 6.9 and the data shows that managers with more direct reports experience higher turnover.\" \nMany of the key findings from the inaugural study focus on promotional activities, a topic of great importance to younger employees focused on career opportunities. Overall, employers promote 8.9 percent of their employees annually and those employees received an average wage increase of 17.4 percent. Interestingly, however, promotions within a team are associated with higher turnover among other team members. Dr. Yildirmaz noted that, \"While promotional opportunity may be perceived as a net positive, it can also have negative impact for team members who have been passed over.\" On the flipside, the probability for promotion exceeds 20 percent for employees as they reach higher levels of management within the organization. Firms are more likely to promot...

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