2019 State of the Workforce Report: Pay, Promotions and Retention

Source: Ahu Yildirmaz, Christopher Ryan, Jeff Nezaj, ADP Research Institute, June 2019

All employers face the fundamental challenge of structuring, rewarding and motivating their organization’s workforce for optimal productivity and overall business performance. Unfortunately, there is no magic formula for success that works in all situations. Each employer faces its own unique circumstances — mission, market demand, competitive differentiation, labor availability and cost structure, among other things — that drive continuous change. Existing literature suggests that an organization’s ability to adapt to these changes is fundamental to the organization’s survival.

…. As a comprehensive, up-to-date source of organizational data, the findings in the report provide a solid basis for firms to understand their own organizational dynamics and improve performance.

Key observations from this inaugural study illustrate some of the ways employers can use this data:
– On average, employers will promote 8.9 percent of their employees annually, and those employees will receive an average wage increase of 17.4 percent
– Firms are more likely to promote internal employees for management positions
– Promotions within a team are associated with higher turnover among other team members
– Employee turnover varies significantly with demographic factors
– Males and females show significant disparities across pay and organizational hierarchies