CHICAGO--(BUSINESS WIRE)--Grant Thornton, one of America’s largest brands of professionals providing end-to-end audit, assurance, tax and advisory services, has released a survey exploring the latest trends in employee attitudes, desires and concerns. The firm’s 2024 State of Work in America survey engaged 1,500 full-time employees of U.S. companies and revealed the growing mental and emotional toll that economic and global factors have had on workers.
Fifty-one percent of survey respondents have suffered burnout in the past year, a 15 percentage-point increase from last year’s survey. Respondents said the top causes of burnout were mental and emotional stress at 63%, followed by long hours at 54%.
Alongside the rise in burnout, respondents reported a decline in their overall well-being in 2024, noting a decline in key areas, including mental (32%) and financial (30%) health.
“External factors such as increasing global conflicts, post-pandemic inflation and a particularly stressful political environment are all outside stressors that can burden the minds of employees, who in turn bring these worries with them into the workplace,” said Joe Ranzau, managing director of Growth Advisory Services at Grant Thornton.
Communication gaps and staffing shortages fuel workplace stress
When asked about the most stressful part of working at their organization, 40% of respondents pointed to people shortages. Additionally, more than one-third (34%) of respondents identified poor communication as the second-highest source of stress.
Margaret Belden, director of Growth Advisory Services at Grant Thornton, emphasizes the need for leaders to elevate the type and frequency of communications, advocating for transparency and for clearly explaining the “why” behind decisions that impact employees. For instance, while CFOs are understandably focused on cost containment amid worker shortages, it’s important to recognize that employees identify resource shortages as a primary driver of burnout. Contextualizing these challenges is essential to fostering a healthier work environment.
“It’s about empathy and compassion,” said Belden. “Leaders must be willing to ask uncomfortable but necessary questions — both personal and professional — to get to the heart of employees’ concerns. This type of connection is now more critical than ever.”
In particular, employees are seeking greater transparency about compensation, career advancement and their overall standing within an organization. In fact, performance feedback is a major driver of employee satisfaction. According to Grant Thornton’s HR Leaders survey, 76% of HR leaders plan to overhaul their performance management processes, leveraging AI to promote better content in reviews, as well as more frequent feedback that is development-oriented and future-focused.
Navigating compensation challenges
When asked what initially drew them to their organizations, respondents cited benefits (48%) and base pay (45%) as the top two factors. These same elements also play a key role in retention, with 53% identifying benefits and 44% highlighting base pay as the main reasons they remain with their current employer.
Now, with rising costs and inflation continuing to impact households, employees are becoming more critical of their wages and the costs associated with their benefits. To address this, leaders must leverage market data to stay competitive, practice transparency regarding their organization’s financial standing and ensure clear pay practices are in place.
Rob Ginzel, director of Growth Advisory Services at Grant Thornton, notes that, over the past few years, workers have had the advantage in compensation negotiations, resulting in widespread wage increases. However, inflation over the last year has eroded those wage gains, and the hiring dynamic is now shifting back toward an employer-favored marketplace.
“In times of financial constraints, employers need to recognize that compensation isn’t just about salary,” said Ranzau. “Employees value flexibility in areas such as work schedules, job content and how and where work is done. But employers should be mindful that when salaries are lower, trade-offs — such as adjusting workloads or expectations — may not be as effective in retaining talent.”
An interesting finding from the survey is that only 10% of workers expressed concern about potentially being laid off in the next year, despite job security ranking highly as a motivator for staying with an organization. The survey also found that 25% of workers currently hold a second job, and 37% are considering one, which can quickly contribute to declining wellness and increasing burnout.
Adapting to the future of work and career mobility
After compensation (49%), lack of advancement opportunities (31%) is one of the most significant factors impacting why people leave their employer. As technology evolves and market conditions shift, upskilling the workforce becomes crucial to ensure employees have adaptable skills and exciting growth opportunities. This is especially true as AI transforms roles at a pace that many businesses struggle to keep up with. In fact, 28% of workers reported that their jobs are likely to be reduced or eliminated by AI. However, providing clear strategies on how to leverage AI can ease these concerns and empower employees to use the technology to enhance their performance.
“Automation isn’t an immediate fix,” said Jennifer Morelli, principal of Growth Advisory Services at Grant Thornton. “It takes time to integrate automated processes into company operations. Like any other transformation, the adoption of AI and automation requires a thoughtful, dedicated effort to guide people through necessary behavior and mindset changes to realize their full value."
Companies are also shifting from experience-based hiring to skills-based models to widen talent pools and consider less traditional candidates for various roles. This approach not only enhances recruitment flexibility but also strengthens the identification of diverse talent. Organizations that prioritize career mobility, both internally and externally, are more likely to retain top talent and foster a culture of long-term growth.
As a result, organizations are increasingly focusing on organic growth, investing in learning and development, and redefining career paths.
“We’re no longer in career ladders, we're in career lattices,” said Ranzau. “Employees may move diagonally or horizontally as part of their career progression, which supports personal development and organizational growth.”
Morelli emphasized, “To succeed, organizations must invest in learning and development and provide clear advancement paths that will attract and retain talent.”
To see additional findings from Grant Thornton’s 2024 State of Work in America survey, visit: https://www.grantthornton.com/insights/survey-reports/advisory/2024/burnout-turning-up-heat-on-us-companies.
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