Survey Sees a Big Disconnect between Engineering Execs and Employees.

Results from a global survey suggest a big disconnection between executives and employees across the engineering industry. Is it damaging your productivity?

According to a recent report, many Engineering organizations today are using ineffective talent strategies that may be hurting their business. The study reveals how executives and talent often have opposing views on how to cultivate a more agile workforce. And perhaps more importantly, it shows how you can leverage those differences to make your own company stand out in today’s working environment.

Our annual 2024 Global Re:work Report features insights from two surveys—one of 1,500 senior executives, and one of 4,000 employees—at all levels of their organizations. Responses came from 13 countries and 8 industries, including Life Sciences, Energy, Manufacturing, Engineering, and Tech.

Workforce agility is the first focus of analysis in the report. It speaks to the question: is your organization able to scale and align its workforce in response to new opportunities? For example, what’s your capacity to rapidly recruit specific skills, or to reassign employees where they’re most needed?

We analyzed responses from the Engineering industry’s executives and employees, comparing them to the average response from leaders and talent across the United States. We found that Engineering companies’ top priority is improving productivity (42%), and they lead the country in using automation to do it.

However, Engineering companies are also facing significant talent retention challenges when compared to the rest of the U.S., which impacts productivity negatively. On analyzing the data, it shows retention issues are driven in part by a considerable disconnect on several key issues between the priorities of executives and the employees they manage.

One effect of this is Engineering employees are disconnected, and 62% report "quiet quitting" compared to all U.S. workers at 50%. This is compounded by the fact that Engineering companies are finding it difficult to source engineering talent.

Let’s take a closer look at these and other results from the survey.

Facing difficulty in sourcing and retaining talent.

52% of the Engineering execs we asked say they’re having difficulty sourcing and retaining the right talent, which means they’re missing critical business opportunities. This is much higher than the overall average across United States industries total of 43%.

They’re not expecting things to change. We asked how confident the executives were in recruiting specialist talent or specialized engineering skills that are highly sought after. Only 38% felt self-assured.

When asked why retention is a challenge, both leaders and their employees agree on one key point: poor work-life balance. 28% of Engineering executives cite it as one of the most common reasons that talent chooses to leave their organizations. Similarly, when asked about frustrations with their current employer, 21% of workers listed poor work-life balance among their top three complaints.

Signs that executives and talent see things the same way is good news for organizations that hope to collaborate with their talent to find ways out of the current crisis. However, there are other warnings of disconnection that HR leaders should be sure to address and realign.

Significant mismatches between employers and employees.

Executives Say                                      %           |            %            Employees Say

• Poor work-life balance               28%                     21%       Poor work-life balance
• Employees are bored                 29%                     3%       Too many dull tasks
• Poor org culture                           29%                     7%       Poor org culture
• Poor tools and technology        30%                     13%      Poor tools and technology

We noticed a few areas where there’s a considerable gap between what leaders think and what employees are reporting. For instance, 29% of Engineering executives say that employees are leaving their organizations because they’re feeling bored or under-stimulated with the tasks they perform in their role.

This is higher than the national average at 20%, as you may expect of such a technical discipline where problem-solving is key. Yet among the top frustrations expressed in our talent survey, “too many dull or repetitive tasks that aren’t interesting to me” was one of the least-cited issues (3% of engineers), much lower than Executives expected.

Poor organizational culture—for example feeling excluded, not feeling valued, or experiencing burnout—is another reason reported by Engineering leaders as to why their talent is leaving (29%). But once more, “poor organizational culture” is not a main frustration reported by talent, conveyed by just 7% of Engineering professionals.

Another disconnection is seen around “poor tools and technologies.” 30% of Engineering executives cited this as a top reason for poor retention. Yet less than half that percentage listed it among the Engineering talent we surveyed, only 13%.

Really, it’s safe to say that leaders are more concerned with each of these challenges day-to-day by definition of their roles and focus. However, HR should also be aware of these discrepancies, and set a recruiting strategy that better aligns with talent. Be sure to focus on the issues that truly matter to your employees. Ask them often.

Closing the gap: Addressing the real top 3 employee frustrations.

As noted above, both executives and workers can agree that work-life balance is a top concern. This makes it a perfect place to find common ground, and simple ways to improve the issue that can make employees feel heard. Our survey noted two other responses that stood out among the biggest employee frustrations.

One is related to basic economic doubt. 22% of the Engineers we asked felt that “the uncertain economic environment means they needed a job with greater stability,” nearly twice as high as the national average among all employees. To combat this trend, consider offering more communication and information on the topic, and how your company plans to manage. Host internal webinars on managing financial uncertainty. Offer a discount on financial counseling or consulting as a new benefit.

The number one frustration cited by employees is a lack of skills development opportunities, reported by 27% in Engineering. Likewise, executives cite this as a top reason employees choose to leave their organizations. Yet only 1 in 4 (28%) organizations offer face-to-face or online training. By focusing on it now, you’ll set yourself apart that much further from your competing employers.

Quiet quitting lowers productivity in Engineering.

This discrepancy in understanding between Engineering talent and their managers might be driving lower engagement in another new trend. More employees from the field than others have admitted to participating in “quiet quitting”—a term that describes employees who do the bare minimum required of their job and don't put in extra effort or time.

This is notably more prevalent in Engineering. About 62% of U.S. Engineering professionals reported it versus 50% of all U.S. industries. Without fully engaged employees, it’s impossible to drive maximum growth or innovation, and see your company thrive to its full potential. Convey your priorities in ways that reflect how your employees are thinking will go a long way toward improving your employer brand.

For example, we asked executives if they’d agree that their companies are successfully automating aspects of their business to improve productivity and workforce agility. 61% of Engineering executives believe they are, higher than any other industry. So, communicate to employees how important AI is to your future and begin to offer skills development in-house that aligns to your vision. Or pay for employees to get AI training externally. You’ll bridge one gap for skills development, while boosting productivity at the same time in line with your larger strategy.

As noted, this becomes even more critical when more than half of executives are challenged to find and keep the right talent. The current unemployment rate for Engineers stands at just 1.70%, much lower than the long-term average (3.03%) and the current total unemployment average at 4.2%. It’s increasingly important to find new ways to engage and keep the talent you have.

Partner with the experts at hiring experts.

The talent challenges featured in our report highlight a critical need for better workforce planning across Engineering businesses in the United States. There’s a growing distinction between the efforts that employers are making to recruit and retain engineering talent versus the actual employee perception.

Despite efforts to enhance work flexibility and internal mobility, there remains a serious misalignment between company initiatives and what is frustrating employees, particularly around skills development. That points to a need for realignment. To sustain workforce agility, U.S. Engineering firms must refocus on addressing skill gaps and aligning more directly with their employees’ expectations.

Get the full report to see how your company compares. Use this insight to drive your own strategy for improving workforce agility in your Engineering organization. And consider partnering with a talent expert like Kelly Engineering to implement a few of the tactics and approaches you need to stay competitive.

For more information on how Kelly can support your need for STEM talent, visit our web site.