The Americanworker pulse surveyCOVID-19 insights and recommendations for employers

April 2020

April 22, 2020

Contents

3

4

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1 About the survey

2 Key findings

Looking forward: Considerations for employers

Who participated

April 22, 2020

Executive summaryAs COVID-19 transforms the American work experience, employers want to know how their workers are holding up, what they can do to maintain employee morale and productivity, and how they can begin to plan for a smart transition to a post-COVID-19 environment.For insights into these important questions, KPMG polled 1,000 full-time and part-time workers in early April across a range of industries and company sizes.

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April 22, 2020

Key findings

April 22, 2020

Key findings

Americans report their companies communicated well and most report feeling prepared to transition

Despite feeling prepared,Americans are finding it difficult to cope with the new normal, especially parents and management

But American workers are resilient and are finding ways to make it work with their colleagues

Employees who feel valued by their companies are reporting more success during this time

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How prepared did you feel to transition from working in an office or other physical location to working remotely?

April 22, 2020

Many of those Americans who transitioned to working remote report feeling prepared for that change.

Four in five (82%) American workers, who before COVID-19 typically worked in an office or other physical location, felt prepared for their transition to working remotely full-time.

82%Felt prepared

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64%Say finding work-life balance is difficult

69%Say their job is more demanding now

57%Find work to be overwhelming

Parents are having an especially hard time adjusting

To what extent do you agree or disagree with the following statements regarding changes that occurred because of COVID-19? Which of the following has improved or worsened due to the impact of COVID-19?

April 22, 2020

Despite feeling prepared to transition, many are finding it difficult to adjust to the new normal.

60%Say their job is more demanding now

56%Say finding a work-life balance is difficult

53%Say their mental health has worsened

49%Say they find work to be overwhelming

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April 22, 2020

67%

55%63%

50%47%

39%

Job is more demanding now Finding work/life balance isdifficult

Finding work to be overwhelming

To what extent do you agree or disagree with the following statements regarding changes that occurred because of COVID-19?

The higher Americans are up on the corporate ladder, the more likely they are to find work more challenging.

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Management Non-management

April 22, 2020

The findings show that perception on culture and feeling valued pose a greater risk at the non-management level.

Of non-management workers say they don’t feel valued by their company compared to 19% of middle management and 22% of upper management

Of non-management workers say company culture has worsened compared to 25% of middle management and 23% of upper management

32% 36%

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To what extent do you agree or disagree with the following statements regarding changes that occurred because of COVID-19?Which of the following has improved or worsened due to the impact of COVID-19?

April 22, 2020

Uncertainties about the future leave many feeling concerned.

63%

are concernedabout reducedpay

56%

are concerned about the future of their industry

57%

are concerned about losing their job

44%

are concerned about technology replacing their job

How concerned are you with the following regarding the impact of COVID-19?

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April 22, 2020

But American workers are resilient and are finding ways to make it work regardless of the challenges.

How effectively has your team used technology to communicate or adapted to working together? Has team collaboration changed as a result of COVID-19 changes?

Four in five American workers

Say their team is effectively using technology to communicate (87%)

Say their team has effectively adapted to working together (82%)

70%Say their team is collaborating better as a result of COVID-19 changes

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April 22, 2020

And now more than ever, American workers are leaning in to their companies, saying they are more committed.

More than 8 in 10 American workers say they are more committed to their companies amid COVID-19 changes.

85% are more committed

And that’s especially true among management

96%

87%

80%

Upper management Middle management Non-management

How has your commitment to your company changed during COVID-19?

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April 22, 2020

Commitment levels differ by industry, with healthcare and retail among the lowest.

94% Insurance

American workers in the insurance, banking and capital markets, and tech industries are more likely to report feeling more committed to their company amid COVID-19 changes in comparison to workers in healthcare and retail.

92% Technology

78% Retail

80% Healthcare

92% Banking

How has your commitment to your company changed during COVID-19?

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April 22, 2020

Has improved

Has worsened

And while many are adjusting to the changes, 3 in 5 feel things have improved over time with the changes.

Which of the following has improved or worsened due to the impact of COVID-19?

58% 59% 58% 64% 54% 59%

Engagement with company

cultureRelationship

with coworkersWork-life balance Quality of work Level of

productivity

Engagement with my

supervisor/ team

42% 41% 42% 37% 46% 41%

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April 22, 2020

Which of the following has improved or worsened due to the impact of COVID-19?Of the following, what has your company done in response to COVID-19 changes?How effectively has your team used technology to communicate or adapted to working together?Has team collaboration changed as a result of COVID-19 changes?How has your commitment to your company changed during COVID-19?

The findings are clear. Employees who said they feel valued by their company were more likely to report success transitioning during this time.

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Feel valued by their employers

Do not feel valued by their employers

Quality of work has improved 69% 47%

Level of engagement with supervisor/team has improved 67% 37%

Coworker relationships have improved 65% 42%

Level of engagement with company culture has improved 67% 31%

Work-life balance has improved 63% 41%

Level of productivity has improved 60% 37%

Mental health has improved 52% 31%

Employers clearly communicated changes to their work 70% 50%

Employers expressed concerned about their well being 72% 40%

Employers provided adequate resources to do their job 68% 31%

Employers laid out a plan on how the company transitions during this time 62% 39%

Effectively used technology to communicate 93% 69%

Effectively adapted to work together 88% 63%

Team is collaborating better now than before 75% 55%

More committed to company 94% 58%

April 22, 2020

Looking forward:considerations for employers

April 22, 2020

As COVID-19 plays out, employers will inevitably begin to shift their focus from resilience. To smooth that transition and position themselves for success, KPMG recommends employers undertake these key additional measures:

Reframe the employee deal. Reframing the employee deal starts with sharpening and reinforcing the employee value proposition by focusing on all the factors that go into it, including compensation and rewards, development and advancement opportunities, and workers’ physical health and safety. It also requires maintaining and improving the employee experience, which for now should involve reinforcing team dynamics, continuing to facilitate remote work as needed, and upgrading leadership competencies to accommodate new workplace realities.

Review how teams are tooled. As employers segue from short-term response to COVID-19 to a long-term shift in how and where their people work, they should boost use of the technologies they have found most supportive of new ways of working—including increasingly important tools like machine learning, robotic process automation and other artificial intelligence applications that can help workers do their jobs faster and better.

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April 22, 2020

Reskill workers. As new technologies continue to reshape the world of work, it will be incumbent upon employers to make sure employees’ skillsets keep pace and that the workforce in general has the flexibility needed to adapt to whatever changes may lie ahead. Employers also must be prepared to deliver training and education programs in a virtual environment when, in situations like the current one, traditional environments are not accessible.

Invest in leadership. To address and prevent burnout in leadership ranks, it will be critical for organizations to reestablish expectations and resourcing for top-level leaders, making sure they have everything they need to do their jobs and manage their emotional and psychological challenges amidst ambiguity.

Start planning now for economic recovery. We suspect the economy’s recovery will occur in stages as consumers gradually begin to feel comfortable returning to public spaces and resuming pre-COVID-19 routines. Employers must start preparing now for how they will respond—who will come back to work first, what will be needed to ensure their safety and the safety of customers, and what changes implemented during the pandemic should continue even after it has passed.

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April 22, 2020

Who participated?

Role in company

11%

47%

42%

Middle managementUpper management Non-management

Company size

Small 51%

Medium 30%

6%

39% 38%

17%

Gen Z Millennial Gen X Baby Boomer

Male Female

52% 48%

Gender Generational breakdown

Large 19%

Top five industries represented

Technology

22%

Banking

10%

Insurance

6%

Healthcare

19%

Retail

7%

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Some categorical response rates in this survey presentation may reflect a threshold of less than 100 survey participants.

April 22, 2020

Contact usPaul LipinskiPrincipal, Human Capital Advisory leader E: plipinski@kpmg.com

Matt CampbellManaging Director, Human Capital Advisory E: mscampbell@kpmg.com

Brock SolanoManaging Director, Human Capital Advisory E: brsolano@kpmg.com

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