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Thursday, 24 October 2024 12:06

Dissatisfied workers cost Aussie frontline businesses approx. $15.8 billion a year in lost productivity

By SafetyCulture

SafetyCulture report reveals critical gaps in frontline workforce management

SafetyCulture, an Aussie-founded global technology company, has released its fourth annual Feedback from the Field report. The report highlights a challenging period of change for Australia’s frontline industries, with a stretched workforce battling fractured workplace relationships, inefficient tools, and a shrinking skills pipeline.

Feedback from the Field: Time for Change is one of the largest global studies on the frontline workforce, surveying more than 10,000 workers across Australia, the UK, the US, Germany, France and Ireland. It provides a pulse check on the sentiment and challenges within the critical industries powered by 5.4 million deskless workers nationally. 

Australian workers feeling overworked and frustrated with inaction on issues

The majority (76%) of Aussie workers are dissatisfied with some aspect of their job. Among these workers, the primary reasons are unreasonable expectations leading to burnout (37%), slow responses to resolving issues or risks (36%), and pressure to cut corners to save time or money (33%).

When workers are unhappy, performance takes a hit. Of workers who admit to dissatisfaction impacting their performance, 40% feel less motivated, and 31% report reduced productivity.  On average, Aussie workers lose an estimated 6.59 hours a month due to dissatisfaction, which may show up as unproductive downtime, frequent errors, or absenteeism. The collective impact of this discontent is costing Australian businesses an estimated AUD $15.8 billion1 annually, dubbed the “Dissatisfaction Dollar.”

"Them vs. us” - a divide between management and the frontline  

The study reveals a concerning disconnect between management and frontline employees. Both groups agree there is a “them versus us” mentality (52%), rising to 64% among management and 53% among frontline employees. This divide is most prevalent in the distribution, logistics, supply & transport sector (66%) and lowest within the hospitality industry (48%).

Sam Byrnes, Chief Product Officer at SafetyCulture, says, “Frontline workers are telling us they feel unheard, overstretched, and compromised. On top of this, there is a strained relationship between employees and management that isn’t conducive to a healthy workplace culture or optimal outputs.

“There will always be room for improvement within organisations, but leaders are doing themselves, and their people, a huge disservice by failing to understand frontline challenges, acknowledging and addressing issues, and communicating adequately.

“It’s time businesses woke up to the fact that listening to people on the frontline is one of the fastest ways to improve the bottom line.”

Differences also become apparent among workers who think the frontline/management relationship can be repaired. Of these, most frontline employees desire better pay and benefits (62%), but only 49% of managers agree. Similarly, while 51% of frontline employees feel that recognition for strong performance would help ease fractures, only 39% of managers agree. On the flipside, 36% of managers feel that greater visibility of company goals could close the gap, but only 27% of those on the frontline concur. 

Skills shortages and poor knowledge-sharing create a “brain drain”

While some skills are taught, the most valuable knowledge often comes from years of experience and mentorship. It’s worrying, therefore, that 62% of Australian workers believe there will be a “brain drain” (i.e. loss of skilled and experienced workers) in their industry in the future – the highest of all regions surveyed.

Poor processes for capturing and sharing knowledge could amplify this risk, with 62% of Australian workers believing that knowledge sharing (i.e. the sharing of knowledge that helps someone perform their role, deepen their skills or upskill) is ineffective in their organisation – also the highest of all regions surveyed.

Sixty per cent of Australian workers are also concerned about skills and labour shortages in their industry. Of workers who believe these shortages present critical issues, 22% report that these are already presenting problems, and 41% believe issues will present within the next three years. 

Outdated and unfit tools & IT systems are causing a productivity roadblock

Compared to all other regions surveyed, Australian workers express the highest level of concern about the impact of new technologies. Two in five (40%) of those with concerns about the future cite emerging technologies such as AI (vs. 34% overall globally) and 46% of workers are concerned their role will be automated in the future (vs. 37% overall).  

While Australian workers express concern about future technologies, they are also frustrated with their current tooling. Nearly two-thirds (62%) are not fully satisfied with their tools and IT systems. Of these, more than one-third (37%) are dissatisfied with outdated systems, one-third (33%) say they have too many tools and IT systems, and 30% say their tools and IT are unfit for purpose.

Ineffective tools and IT systems not only frustrate workers but also reduce productivity by slowing processes and causing unnecessary downtime. On average, Australian workers lose an estimated 5.70 hours each month due to the impacts of unsatisfactory tools and IT systems. This inefficiency costs Australian businesses a staggering estimated AUD $13.7 billion annually.[3]

“Workers are only as effective as their tools. That’s why we've gathered insights from the frontline at every step of developing the SafetyCulture platform, helping us build an accessible, mobile-first platform that, above all else, meets worker's true needs.

“These tools give onsite teams the knowledge, tools, and confidence to work safely, meet higher standards, and improve every day. It's the power of improvement in their hands.”

For more information and to download the full report, visit https://safetyculture.com/feedback-from-the-field-time-for-change/

The cost of dissatisfaction to business - YouGov calculated this figure based on the average local weekly wage, the estimated average hours lost to the effects of dissatisfaction as reported by survey respondents, and the estimated number of workers in frontline industries.  Local wage estimates were sourced from national statistical agencies, and the number of worker estimates were sourced from YouGov Profiles.

Emergence (2020). The State of Technology for the Deskless Workforce.

The cost of ineffective tools and IT systems to business - This figure was calculated by YouGov based on the average local weekly wage, estimated average hours lost to ineffective tools and IT systems as reported by survey respondents, and the estimated number of workers in frontline industries. Local wage estimates were sourced from national statistical agencies and the number of workers estimates were sourced from YouGov Profiles.

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