Top 4 Lessons from Workforce Resilience Leaders in 2024.

Resilience is crucial for future-proofing your workforce. 

But would you describe your workforce today as highly resilient? About half of the executives we surveyed did, with some industries more confident (Tech, 56%) than others (Energy, 44%). 

Yet, when we analyzed their full response in context of our new Workforce Resilience Index, only 7% qualified as true Resilience Leaders. So, where’s the disconnect? And what exactly are those Leaders doing differently?  

Introducing the 2024 Workforce Resilience Index: Insights and Analysis. 

The results are in from our annual 2024 Global Re:work Report, featuring 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. 

In it, we explore Workforce Resilience. We define that as your ability to build and maintain the workforce you need to stay competitive and successfully respond to your changing business demands. That breaks down into three key areas: 

•       Agility: Scaling, aligning, and retaining top talent.
•       Capability: Developing talent and equipping them with the right digital tools.
•       DEI: Fostering an inclusive culture and a positive talent experience.

This year, we used responses in those three areas to calculate a Workforce Resilience Index. Our analysis highlights differences between the Resilience Leaders, who score 70 or more out of 100 on the Index, the Mid-Market Performers (31 – 69), and the Laggards, who score 30 or less. Plus, for the first time, we dig into the differences between the best and the rest within each pillar.

Global Leaders by Geography 

Resilience Leaders were concentrated in Norway, Sweden, and Germany. The U.S. ranked 7th of 13 countries, while Australia ranked last.

The Index identifies a group of Workforce Resilience Leaders, 7% of companies surveyed. Those respondents report better results for core business metrics and key people indicators, compared to Mid-Market Performers (85%) and Laggards (8%). Scores also reflect that Leaders who’ve implemented strategies to enhance their agility, capability, and DEI are consistently outperforming their competitors across many key indicators.

Let’s take a closer look to see how your company compares. Are you fostering resilient employees and business resilience?

Building Workforce Resilience is Complex. 

First, why did half (49%) of our executives say that their workforces were highly resilient, when just 7% were calculated as Leaders? It may be in how we calculate the Index, by measuring success compiled across 3 areas.

In fact, many executives are likely experts in one of those 3 areas. And many scored higher in our questions related to Agility, for example, than in Capability or DEI. But only a Leader across all 3 categories qualifies as a true Workforce Resilience Leader on our Index. So, while many companies today are focused on finding and keeping talent, just as many could benefit from a closer look at developing talent or fostering a more inclusive culture.

Workforce Resilience Leaders vs. Laggards 

In the past year, consider the number of Workforce Resilience Leaders that have reported key strategic advantages compared to the percentage of Laggards: 

Financial success is one hallmark of our Leaders. Seven in 10 Workforce Resilience Leaders (70%) reported increased revenue over the past 12 months—double the number of the lowest-performing organizations on the Index (Laggards, 35%). Another 6 in 10 Resilience Leaders reported improved profitability, compared to only 35% of Laggards.

Other metrics reflect an impact on sourcing and engagement. Nearly 3 in 4 Resilience Leaders reported improved customer satisfaction, versus only 37% of Laggards. 61% of Leaders also confirmed enhanced employee satisfaction, again double the 30% of Laggards.

79% of Resilience Leaders reported an improved ability to recruit talent, against just 27% of Laggards. And more than 7 in 10 Resilience Leaders reported improved retention, as compared to only 34% of the Laggards. It’s clear that employees feel the difference.

How Workforce Resilience Leaders Outperform the Competition. 

We asked respondents about best practices they use to maintain a strategic focus on workforce agility, capability, and DEI. We found that our Resilience Leaders tend to favor a few key tactics to foster productivity, innovation, and employee engagement that our Laggards often failed to leverage. Consider how well your company is currently using the following 4 strategies.

1. Partner with a workforce solutions provider to build more agile and capable teams.

Resiliency requires a strong partner. We asked executives how effectively their organizations were working with a third-party agency or consultancy to get more insights about their target market for talent and develop successful talent strategies. This might include, for example, tactics for recruiting both permanent and contingent talent. 71% of Resilience Leaders reported working with third parties to develop their talent strategies—compared to only 35% of Laggards.

Broken out by industry, 55% of Life Sciences respondents have implemented this best practice, and 54% of all Engineering executives we surveyed. Less than half of all Tech (49%), Energy (47%), and Manufacturing (46%) companies reported working with a partner for this insight. 

2. Leverage new technologies to get better visibility into your talent.

The Re:work Report showed that 78% of Resilience Leaders are leveraging talent management tools effectively, compared to only 19% of Laggards. 69% of Resilience Leaders leverage technology to improve workforce analytics, monitor productivity, and support hybrid work. Further, 69% of Resilience Leaders are adopting new technologies to gain better visibility into their mix of contingent and permanent talent, compared to only 32% of Laggards.

Our respondents in specific STEM industries are adopting new technologies at a slower rate than Resilience Leaders. Energy (55%), Tech (53%), and Life Sciences (52%) companies are leading the way. Both Manufacturing (49%) and Engineering (48%) trailed the others in employing this approach.

Experts from Kelly Science, Engineering, Technology & Telecom are seeing more clients today in STEM fields deploying custom recruiting analytics, for key metrics such as time-to-fill, number of submissions, number of open requisitions, and turnover.

3. Tap into diverse perspectives to empower your employees to contribute.

This year’s research casts doubt on whether businesses can, or even want to, maintain momentum on DEI. More than half of executives (53%) say their organizations are failing to create an inclusive culture. In this environment, your business can stand out even more by making strides in diversity.

This approach is reflected by 77% of Resilience Leaders saying that a c-suite leader has DEI responsibilities, compared to only 5% of Laggards. 46% of Resilience Leaders say their organization takes a public stance on political issues that affect their employees, compared to only 13% of Laggards. And 44% of Resilience Leaders say that improving DEI is a top priority, compared to only 19% of Laggards.

When asked whether improving DEI was a top priority for their organizations, STEM sector companies trail the Leaders, reflecting a lot of work to do for this key initiative. Energy firms (31%) again lead the way, followed by Manufacturing (29%) and Tech (29%). Life Sciences (26%) and Engineering (26%) trailed the others in employing this approach—only 7% better than Laggards in this area.

Fighting DEI fatigue with a better assessment of ROI 

The issue of DEI fatigue has spread, says Keilon Ratliff, Chief Diversity Officer at Kelly. “We see a lot of DEI fatigue. Some companies that had chief diversity officers are eliminating those roles. Some are eliminating their diversity teams, or they are tucking them up under other departments.”

The result has been a loss of momentum. Yet the business case for inclusion is undiminished. Organizations may need to reset by revisiting their assessment of DEI’s value. “Companies need to look at inclusivity as an asset. You need to understand the return on investment,” Ratliff explains.

4. Be more proactive about wellbeing, mental health, and flexible work.

54% of Resilience Leaders offer mental health resources, compared to only 28% of Laggards. Work life balance is another key. 53% of Resilience Leaders offer flexible and hybrid work arrangements for employees at all levels, compared to just 19% of Laggards.

Our STEM executives were asked if they offered adequate resources to help employees take care of their mental health—such as access to counselling services, mental health first aiders, and education. Tech firms (44%) surpassed all others in this respect, with Engineering companies (29%) leaving the most room for improvement. Manufacturing (36%), Energy (36%), and Life Sciences (34%) all sit in the middle.

Again, Kelly experts are hearing some STEM clients considering tactics to help in this area. Many are talking about the possibility of shifting to a 4-day work week, or at least granting summer hours for employees to help address mental health issues.

Are You a Leader or Laggard? 

Get the full report to see how your company compares. And consider implementing a few of the tactics and approaches above that our Resilience Leaders are leveraging to stay competitive.

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