Contents. Foreword...4. Introduction...5. Executive Summary...6. Mixed feelings about the future...8. Exploring new work cultures...

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3 Contents Foreword...4 Introduction...5 Executive Summary...6 Mixed feelings about the future...8 Exploring new work cultures...11 Career snakes and ladders...14 Skilled up for the future...18 Keeping employees engaged and productive...22 Wellbeing: it s all in the mind...27 ADP Workforce View in Europe

4 Foreword DON MCGUIRE PRESIDENT EMEA Welcome to The Workforce View in Europe 2018, where we provide an unparalleled insight into the thoughts, attitudes, hopes and fears of almost 10,000 workers across the continent. I, for one, am always fascinated to read the findings of our annual study, to gain a deeper understanding of the issues that are impacting our clients on a daily basis and start to develop new ideas for how we can support them in the best way possible. Change management is once again central to the issues faced by employers, as they strive to keep pace with new ways of working and unrelenting innovation, while continuing to support their people. Here at ADP, technology and innovation have always been at the heart of our business, and we truly believe that, however daunting the shifts, the real threat is standing still. Only by embracing change can the future of organisations and their people be assured. Only by embracing change can the future of organisations and their people be assured. But of course, new technologies also bring unfamiliar risks and challenges, as we ve seen in the explosion in data and the security and privacy issues that come with it. HR teams are increasingly maximising the information at their disposal to better understand their workforce and implement more effective strategies, but this must be done responsibly. With GDPR a very real concern, employers must ensure they are prepared. On that note, we hope that you find The Workforce View 2018 as useful as we do in getting to know your people better; engaging them and helping your business to thrive. People are the lifeblood of all organisations, yet all too often, in HCM, employees are just treated as an entry on a spreadsheet. By truly knowing and understanding your most valuable asset - your people you can create a platform that supports your company s ambition. 4 ADP Workforce View in Europe 2018

5 Introduction There is no doubt that the Europe of 2018 looks very different from the Europe of a few years ago. Widespread economic growth and falling unemployment point to a period of relative stability, although the political landscape continues to present numerous uncertainties. The apparent economic and employment stability also masks a continent that is advancing faster than we would have imagined possible, with technology in the driving seat. And every level of society is feeling its effects. So, as organisations struggle to keep up, The Workforce View in Europe 2018 provides a muchneeded barometer of how employees are feeling, with a survey of almost 10,000 workers across France, Germany, Italy, the Netherlands, Poland, Spain, Switzerland, and the UK. With insights into some of the most pertinent topics of the moment, including automation, skills, self-employment, productivity and equality, it is essential reading for those focused on building a more human resource. At the forefront of this rapid change is the workplace, with organisations working frantically to take advantage of the innovations that are emerging and to get ahead in an increasingly competitive world. But what does all this change mean for employees, who are faced with new skills demands, new ways of working, and the threat of automation? The human element of work has never been more important; the machines haven t taken over, just yet. About the report The Workforce View in Europe in 2018 explores the attitudes of employees towards the future of work. The findings provide important insight into business-critical issues, such as employee optimism and retention, skills and career development, productivity challenges, technology and automation, wellbeing and discrimination. The research was carried out by independent market research agency Opinion Matters, on behalf of ADP, in Summer The sample consisted of 9,908 working adults in eight territories across Europe: France, Germany, Italy, the Netherlands, Poland, Spain, Switzerland, and the UK. ADP Workforce View in Europe

6 Executive summary Optimism continues to rise, just Optimism has risen for the third year running, with a one percentage point increase compared to last year. The Netherlands is the most optimistic nation (85%), while France continues to fall behind the rest of Europe (74%). The biggest rise in positivity is in Italy (up 6 percentage points), while Poland has seen the largest fall over the last 12 months (down 8 percentage points). Self-employment losing its shine Fewer employees would consider self-employment compared to last year (60% vs 68%), while the number actively considering it has also fallen (down seven points to 8%). Self-employment is most attractive to employees in Italy, where more than a quarter (26%) are actively considering the jump, compared to only one in ten employees (10%) in the Netherlands. Reluctance to roam Only 6% of those questioned are actively considering moving abroad for work, rising to just over one in ten (11%) of Italian employees and falling to 3% in the Netherlands. The biggest barriers are ties to family and friends (32%), the language barrier (21%) and a lack of interest (14%). Discrimination nation Just over one in three (34%) European workers have felt discriminated against at work, rising to 42% in Italy. The most common reason is given as age, cited by 10% of workers, followed by gender (8%), background (5%) and education (5%). Age is also given by nearly one in five respondents (18%) as the biggest factor preventing their career progression. 6 ADP Workforce View in Europe 2018

7 Executive summary Skills confidence declining Only 83% of workers feel confident about their skills level, down one percentage point since last year and a 6% fall since Spanish workers are the most confident in their skills level (89%), while Dutch workers are the least (79%). The only country that has seen their skills confidence increase is Poland, up four percentage points since last year. The robots are coming Nearly a third (28%) of Europe s workforce is worried that their job will be automated at some point in the future, with 15% believing it will happen in five years, and over a quarter (28%) estimating around ten. Italian workers are the most concerned about automation (40%), while Swiss and Polish (20%) employees are the least. The productivity problem One in five respondents (22%) struggle to be productive at work, with one in ten rarely or never able to reach maximum productivity, rising to 13% in the UK. The three biggest barriers to productivity are bad management (19%), inefficient systems and processes (18%) and slow and inefficient technology (15%). Being mindful of wellbeing Nearly one in five respondents (18%) say they endure stress daily and three out of ten (30%) feel so stressed that they are considering finding a new job. Meanwhile, more than one in ten (14%) respondents believe their company takes no interest at all in their mental wellbeing. ADP Workforce View in Europe

8 Mixed feelings about the future

9 76% % 2017 Optimism across the ages Unlike previous years, all the countries surveyed are now experiencing economic growth and falling unemployment, which means levels of optimism are following suit. Across the continent, 79% of respondents now describe themselves as optimistic, a rise of one percentage point since 2017, and a two point rise since Employee optimism across Europe 1 Poland % % 2 Germany % % 84% Dutch workers are the most optimistic, with 85% of workers describing themselves as such, a four percentage point rise on last year. At the other end of the scale, French workers have retained their position as the least positive nation (74%), despite a three point rise on However, the most significant shifts can be found in Italy, with a six percentage point rise since last year (from 72 to 78%), and Poland, with a drop of eight percentage points (84 to 76%). 3 Netherlands % % 81% 85% 4 Switzerland % % 79% When age is taken into account, the optimism of youth is clearly visible, with younger workers seeing their future in the workplace as significantly brighter than their older colleagues. Of the under 35s, 81% say they are optimistic about the future, compared to just 76% of those over Spain % % 79% 6 UK % 76% 75% Italy France 72% 78% 71% 74% Optimism by age group I YEARS YEARS I 81% years I76+24+I75+25+I 81% 80% years YEARS years YEARS 77% years 55+ YEARS 76% 55+ years ADP Workforce View in Europe

10 Should I stay or should I go? Employee attitudes to tenure remain consistent with 2017, as jobseeker confidence continues to benefit from the relative economic and employment stability across Europe. More than one in ten respondents (13%) say they are looking to leave their organisation in the next 12 months, while over a quarter (26%) intend to stay with their organisation for the rest of their working lives. On average, workers expect to be with their employer for just over four years. Closer analysis reveals that Poland is set to see the highest turnover, with 16% of workers expecting to leave within a year, closely followed by workers in the UK and Switzerland (both on 15%). These three countries also have the fewest workers who plan to stay with their employer for the rest of their career (17%, 20% and 25% respectively). The most loyal nation is the Netherlands, where 37% of workers plan to stay with their employer for life, a jump of 15 percentage points since last year. In contrast, the loyalty of French workers has seen a significant downturn, with only 20% saying they plan to stay with their employer for life, compared to 28% last year. Germany has seen a similar fall in loyalty from 30% to 25%, and Italy from 33% to 29%. From an industry perspective, sales, media and marketing looks set for high turnover, with 18% of its professionals anticipating a move within 12 months, followed by arts and culture (17%). Workers are the most loyal in manufacturing and utilities, and education, where 32% and 31% respectively are planning to stay with their employer for the rest of their career. Employees who expect to stay for life United Kingdom 17% 21% 20% France 30% 28% 20% Italy 35% 33% 29% Netherlands 36% 22% 37% Germany 40% 30% 25% Spain 32% 30% 32% Switzerland 25% 24% 25% Poland 21% 15% 17% 10 ADP Workforce View in Europe 2018

11 Exploring new work cultures

12 Is self-employment losing its shine? Despite explosive growth in recent years, there are signs that the gig economy and self-employment may be losing their attraction, with fewer employees ready to consider this way of working (60% vs 68% in 2017) or actively considering it (down seven points to 8%). Self-employed workers are also slightly less optimistic than they were in 2017 (77% vs 79%), perhaps as some of the less positive realities of this lifestyle start to hit home. Having said that, the pan-european picture masks some stark differences between individual countries. For example, the desire to become self-employed peaks in Italy, where more than a quarter (26%) of workers are actively considering the jump, followed closely by the UK, where the figure is 20%. Yet this contrasts sharply with the Netherlands, where only one in ten employees (10%) are tempted to set up on their own. There are also marked differences across the age groups, with more than three times the number of year olds actively considering self-employment, compared to the over 55 demographic (29% vs 9%). Similarly, from an industry perspective, employees working within arts and culture are most likely to be considering the change (30%), double the number that are ready to go solo in the healthcare industry (15%). Percentage of workers interested in self-employment % 68% 12 ADP Workforce View in Europe 2018

13 A cultural challenge A move abroad? Europeans are arguably the most well-travelled citizens in the world, yet the findings suggest that this adventurous spirit doesn t always extend to the workplace. Overall, only 6% of those questioned are actively considering a move abroad for work in the next two years, although over a quarter (27%) say they would consider it. Workers in Italy are much more likely to be considering a move overseas than other countries, with over half (57%) of those questioned saying they would at least consider it in the next two years, and 11% actively looking into it. The French are also more likely to be thinking about this option than other countries surveyed (37%). However, this contrasts sharply with Switzerland, where less than one in five respondents (18%) feel the same way, and the Netherlands, where only 3% are actively considering relocating. There is a slight gender divide, with 37% of male employees saying they are actively, or open to, considering international work in the next two years, compared to just 30% of women. Age is also an important factor, with one in ten (10%) under 35 year olds actively considering a move abroad in the next two years, compared to just 3% of over 45s. Professional destinations When we drill down into where people want to work overseas, Germany is again seen as the most attractive destination overall, with 23% of those who would consider a move naming it as their first choice. North America has risen significantly up the rankings, with more than one in five (21%) saying they would consider a move there, up from only 5% last year. And interestingly, Brexit doesn t seem to have deterred employees from a move to the UK, with a fifth naming it as an attractive work destination, a rise of 5%. At a country level, some preferences can be identified. For example, North America is seen as the most attractive choice for British, French and Swiss employees, while the UK is the preferred choice for Spanish employees. Meanwhile, German employees are most drawn to Austria or Switzerland, the Dutch are most likely to choose Belgium, and Italian and Polish employees are most likely to opt for Germany. The barriers Upping sticks to work abroad isn t an easy decision, with multiple personal and professional hurdles to overcome. In fact, when asked what would hold them back, the research reveals that ties to family and friends would be the biggest issue for almost a third (32%) of respondents, significantly more than other factors. This was followed by the language barrier, offered by just over a fifth of respondents (21%), while 14% stated that they are simply not interested in the idea. ADP Workforce View in Europe

14 Career snakes and ladders

15 What s stopping you? The European workplace is more diverse than ever, with individuals of all ages and backgrounds working side-by-side. Yet, despite this diversity, there are signs that not all employees are being given the same opportunities, with nearly one in five respondents (18%) saying they believe their age is the biggest factor preventing their career progression. This places it considerably ahead of other environmental, economic and industry specific factors. Furthermore, the figure rises drastically amongst the older age groups, with 28% of 45 to 54 year olds and 51% of those over the age of 55 believing their age is holding them back with a five point increase since last year for the latter group. In contrast, only 7% of the youngest age group feel the same way. Age also appears to be a bigger barrier in some countries than others, with more than one in five (22%) of those in Switzerland, the Netherlands, and the UK feeling they are not progressing because of their age, compared to just 13% in Germany. Other key factors limiting career progression include lack of opportunities with current employer (9%), family needs (7%) and favouritism (7%), with some interesting variations between countries. Notably, German workers are more likely to say that family needs are a barrier to their career progression (11% vs a Europe-wide average of 7%), while Italian workers are twice as likely to cite favouritism (15% vs 7%). Attitudes shift again in France, where workers are the most likely to blame a lack of opportunities with their current employer (15% vs 9%). It is also intriguing that age is seen as a bigger barrier for male workers than their female colleagues (21% vs 14%) while, perhaps unsurprisingly, women are more likely to say family needs are a problem for them (9% vs 6%). Ten key factors preventing career progression in Europe I 18% Age 9+91+I 9% Lack of opportunities with current employer 7+93+I7+93+I6+94+I 7% Family needs 7% Favouritism 6% Lack of qualifications I9+91+I4+96+I4+96+I4+96+I 5% I don t want to progress any further 5% Unfair or poor leadership 4% Lack of opportunities in the industry 4% Education 4% Language barriers ADP Workforce View in Europe

16 Fighting discrimination Employers across the Europe Union are obliged by law to ensure equal treatment of workers and combat any kind of discrimination based on sex, racial or ethnic origin, religion or belief, disability, age or sexual orientation. Yet worryingly, despite these laws, our findings reveal that just over one in three (34%) European workers have felt discriminated against for some reason at work. This rises to 42% in Italy, and 37% in France, Spain and the UK, while the Netherlands has the lowest incidence at 21%. Again, age is given as the most common reason for discrimination, cited by 10% of workers, followed by gender (8%) and then background (5%) and education (5%). Gender discrimination is higher amongst female workers (12%), while age discrimination rises amongst the over 55s (17%) and under 25s (17%), suggesting that it isn t just an issue for the older demographic. Reports of discrimination based on age are more prevalent in the UK (12%), while Spanish workers report being most likely to be treated differently due to their gender (12%), and Italian workers because of their background (10%). Workers in the arts and culture sector report being significantly more likely to have experienced discrimination than other sectors (48%), while a high proportion of those in sales, media and marketing (40%) and financial services (40%) have also reported facing the issue at work. Top reasons for discrimination at work in Europe 01 Age 10% 02 Gender 8% 03 Background 5% 04 Education 5% 05 Appearance 4% 06 Race/Nationality 3% 07 Religion 3% 08 Sexuality 2% 16 ADP Workforce View in Europe 2018

17 Gender pay gap reporting Despite the principle of equal pay being enshrined in EU law, women are still paid on average 16.3% less than men across Europe. This has led some countries to introduce gender pay gap reporting, in an attempt to close this unacceptable gap in earnings. For example, French legislation introduced in 2010 requires companies with more than 50 employees to carry out gender pay gap analysis, while the UK has recently followed suit, introducing mandatory reporting for employers with more than 250 employees. But do European employees feel gender pay gap reporting is necessary in their organisations? Overall, the majority of Europe s workers have confidence that their employer is already paying men and women fairly, with 53% believing pay gap reporting is unnecessary as far as they know. However, that does leave over a fifth (22%) who feel that it is required, and a quarter (25%) who aren t sure. The numbers, perhaps unsurprisingly, shift depending on the gender being asked, with a quarter (25%) of female employees believing pay gap reporting is necessary, compared to only 19% of their male colleagues. It is also marginally more popular amongst younger age groups, with over a quarter (28%) of the 25 to 34 demographic in favour, compared to just 16% of over 55s. At a country level, support for the legislation peaks in France, where one third (32%) of employees think there should be gender pay gap reporting, along with Switzerland where 29% are in favour. Workers in the Netherlands are the least likely to believe it is necessary (8%), followed by the UK (14%), despite the legislation that recently came into force. From an industry perspective, those in the financial services sector are most likely to say gender pay gap reporting is required in their company (30%), closely followed by those in IT and telecoms (27%). In contrast, public sector workers are significantly less likely to feel it is necessary (9%). Employees who believe there is a need for gender pay gap reporting in their organisation 32% 25% 23% 8% 26% 23% 29% 14% Report on equality between men and women in the EU - ADP Workforce View in Europe

18 Skilled up for the future

19 Skills confidence continues its decline Skills needs are constantly shifting, as innovative technologies, new ideas and modern strategies change the face of work. To stay relevant, employers and employees must continuously update their skills, in preparation for the needs of the future. Yet our research shows this may not be happening fast enough, with only 83% of workers feeling confident that they have the skills to succeed in their role - a one percentage point drop since last year and a worrying 6 percentage points fall since The decline in confidence is evident across the majority of countries surveyed. Spanish workers are once again the most assured in their skills level (89%), despite a two percentage point drop on last year. At the other end of the scale, Dutch workers are the least confident (78%), a substantial fall of 6 percentage points since last year and 14 percentage points since Female employees once again show lower skills confidence than their male colleagues (81% vs 85%), while employees tend to feel less self-assured as they get older. For example, the 45 to 54 age group reports the lowest skills confidence at 79%, compared to 86% amongst the 16 to 24 age group. This could be influenced by the fact that they have recently left school or university, and are typically although not always - more fluent in using new technologies and more malleable to new ways of working. IT and telecoms professionals once again report the highest levels of skills confidence (88%), although even here we see a fall of three percentage points, suggesting the pace of workplace change is even catching up with the technically-minded. Employees who believe they have the skills to succeed % 91% 89% 92% 85% 86% 86% 86% 85% 93% 85% 85% 89% 82% 81% 88% 83% 80% 82% 79% 92% 84% 78% 75% ADP Workforce View in Europe

20 The future is automated Will a robot take my job? It s impossible to talk about skills in 2018 without touching on the issue of automation. With artificial intelligence (AI) and robotics being deployed at a rapid pace across a range of industries, many employees are understandably concerned about what this means for their future in the workplace. In fact, nearly a third (28%) of Europe s workforce say they are worried that their job will be automated at some point in the future. Having said that, few respondents believe this change is imminent, with only one in fifty (2%) fearing their job will become automated or replaced by a robot in the next year. However, the number increases to 15% who believe it will happen in five years, and over a quarter (28%) who estimate it will take around ten. There are some significant differences from country to country, with Italian workers the most concerned about automation; there, 40% of workers believe their job will be automated at some point in the future. Those in the UK are also more concerned than the average (32%), while just a fifth of Swiss (20%) and Polish (20%) workers believe it will happen in the coming years. Concern about automation is greater amongst the younger age groups, with almost four out of every ten (39%) 16 to 24 year olds worrying that their job will be automated, compared to just 18% of those in the 55+ age group. This could be because they are less established in their careers and have more of their working life ahead of them, but it certainly demonstrates that the impact of AI is already firmly placed in the minds of the young. Employees in the financial services sector are most concerned about automation, with 44% fearing their job will be replaced in the next decade while, at the other end of the scale, just 17% of employees in the education sector and 19% of those in architecture, engineering and building believe their job will soon be done by a machine. Staying one step ahead of the robots With so many workers facing redundancy or redeployment due to technology, retraining and upskilling the workforce will help ensure they have the skills demanded by the new world of work. It is therefore encouraging that over a third of respondents (37%) say their organisation is already doing this, and a further 15% believe their employer is planning to. However, that does leave almost half (48%) of workers with the prospect of seeing their skills being replaced in the not too distant future, if their employer doesn t act quickly. Employers in Italy are the most likely to be retraining employees (66%), while those in Switzerland are the least likely (31%). Of the various sectors, IT and telecoms employers are the most forward thinking when it comes to upskilling workers for an automated future (61%). How soon do employees think their jobs will be replaced by automation? 2+98+I <1 YEAR 8% I <5 YEARS 28% In the next year 2 years or less 5 years or less 10 years or less 2% 8+92+I <2 YEARS 15% I <10 YEARS 20 ADP Workforce View in Europe 2018

21 Data protection On the 25th May 2018, the new General Data Protection Regulation (GDPR) will come into force across the European Union, placing greater onus on organisations to protect employee and customer data and respect their data privacy. But are employers ready? At a European level, the findings suggest not, with just over three in ten (31%) European employees saying they are not confident that their personal data is being stored securely and responsibly by their employer. That is made up of 16% who feel that the company s systems are vulnerable to an attack or data breach, 8% who believe they have no control over their personal data and the same number (8%) who feel their organisation is holding too much data on them, without their consent. Data concerns are highest amongst French employees, 43% of whom are not confident their personal data is being stored securely or responsibly. This falls to 24% of employees in the Netherlands. From an industry perspective, IT and telecoms workers are the most concerned about the security of their data (35%), perhaps because they have the greatest insight into the technology behind it and the possible risks. Employees think their personal data is not being held securely and responsibly because 16% 8% 8% Systems are vulnerable to a cyber-attack or data breach They have no control over the data they're holding on them They feel that the organisation is holding too much data on them without consent

22 Keeping employees engaged and productive

23 Finding the motivation balance Organisations are the sum of their people, which is why employers must invest in ensuring staff have the motivation to not just do their job, but do it well; even going above and beyond what is expected. And while there are various factors at play in instilling this motivation in employees, pay and remuneration continue to dominate, named as the top motivator by almost half (47%) of the research respondents. This figure is unchanged since 2016, demonstrating the continued power of pay to create emotional meaning and context to work. But money is by no means the only motivator, and it is interesting that over half of the group (53%) don t name it as their biggest driver. For these respondents, work-life balance is key, named by over a fifth (22%) of employees, along with relationships with colleagues (21%); although these have both dropped since last year (from 28% and 30% respectively). It s interesting to note that women are less motivated by money than male employees (45% vs 50%), and more motivated by non-monetary benefits such as work-life balance (24% vs 20%) and relationships with colleagues (24% vs 18%). However, there is still a worrying minority (6%) of employees across Europe that say nothing motivates or engages them; this is a slight increase on 2017 (5%) and reaches a high of 8% amongst UK employees. In other areas, those in Poland are the most motivated by money (58%), while the Swiss are the least (35%). Appreciation of work-life balance peaks in France (26%), while the Polish value this the least (15%). And workers in Poland are the least likely to care about relationships with colleagues (15%), compared to a high of 30% in the Netherlands. Organisations are the sum of their people, which is why employers must invest in ensuring staff have the motivation to not just do their job, but do it well ADP Workforce View in Europe

24 The Top future factors is for automated motivation and engagement in Europe 01 PAY & REMUNERATION 47% 02 GOOD WORK-LIFE BALANCE 22% 03 RELATIONSHIPS WITH COLLEAGUES 21% 04 PRAISE & RECOGNITION FROM MANAGEMENT 18% 05 HOLIDAY ALLOWANCE 12% 24 ADP Workforce View in Europe 2018

25 The productivity problem As one of the main drivers of economic output and success, productivity is a key focus for businesses across the board. But getting the most out of your workforce isn t easy, with just under a quarter (23%) of employees saying their workplace enables them to be at their most productive all the time, and less than half (46%) saying this is the case most of the time. That leaves over one in five (22%) who say they are only able to be at their most productive some of the time, while one in ten (10%) say this happens rarely or never. From a sector perspective, the issue is most commonplace in sales, media and marketing, where over a third (36%) of workers say they are not able to maximise their productivity. This is followed by those in healthcare (33%) and retail, catering and leisure (32%), while employees in the arts and culture sector are the least likely to find this a challenge (23%). The biggest productivity problems can be found in the UK, where 13% of workers say they are rarely or never able to reach maximum productivity, along with Germany, where the figure is 11%. Workers in Poland meanwhile have the fewest problems with productivity (6%). ADP Workforce View in Europe

26 Bad management draining productivity Further insight can be gained from the three biggest barriers to productivity, with bad management revealed as the most widespread issue, named by almost one in five (19%) respondents. It was followed by inefficient systems and processes (18%) and slow and inefficient technology (15%), which are also limiting the output of staff. Top barriers to productivity in Europe BAD MANAGEMENT 19% We can again see some notable differences between individual countries, for example, bad management is most likely to be a problem in Poland (25%), while Spain struggles the most with inefficient systems and processes (22%), and the Italians with slow technology (20%). In other areas, the French are most likely to complain about too many meetings being scheduled (15%) and the Brits are most likely to say their productivity is impacted by stress (12%). Despite widespread reports about the detrimental effect of social media and personal technology on productivity, only 6% of European workers cited websites, such as Facebook, as a barrier to productivity and just 5% said their personal phone was too distracting. However, this does rise to 16% amongst 16 to 24 year olds, almost treble the average. At the other end of the scale, older workers are the most likely to say they are not distracted by anything in the workplace (37%), almost double the average (22%). 22% of employees claim have no barriers to productivity in their workplace INEFFICIENT SYSTEMS AND PROCESSES 18% SLOW AND INEFFICIENT TECHNOLOGY 15% LACK OF STAFF TO SUPPORT 14% TOO MANY INTERNAL S 9% TOO STRESSED 9% COLLEAGUES DISTRACTING 12% TOO MANY MEETINGS 10% TOO MANY WORK PHONE CALLS 8% LACK OF FLEXIBILITY OVER LOCATION/HOURS 7% 26 ADP Workforce View in Europe 2018

27 Wellbeing: it s all in the mind

28 Stressed out Europe It s easy to overlook stress as part and parcel of life in a busy workplace, but too much stress can lead to serious problems for employers, including reduced productivity, engagement and increased absence. It is concerning therefore that nearly one in five European workers (18%) say they endure stress daily, a rise of 5 percentage points since last year. And even more worrying is the fact that three out of ten (30%) European employees feel so stressed that they are considering finding a new job, rising to 37% amongst the under 35s. The most stressed out nation is Poland, where over a quarter (27%) of workers say they endure stress daily, followed by 20% of French and British employees. However, those in Italy are the most likely to say that stress is pushing them to find a new job, where a considerable 40% say this is the case, twice as many as in the Netherlands and Switzerland (20%). In fact, the Netherlands appears to have the fewest problems with stress, with just one in ten (10%) employees saying they feel stressed every day. A look at specific demographics reveals that stress appears to decline as workers get older, with over a third (37%) of 16 to 24 year olds considering moving roles because of stress, compared to just 17% of the over 55 age group. From a gender perspective, women appear to suffer stress more frequently, with almost one in five (19%) saying they feel stressed every day, compared to 16% of their male colleagues. Stress levels in Europe 20% 40% 24% 16% 19% 55% 20% 6% 10% 32% 36% 22% 20% 43% 25% 12% 16% 43% 32% 9% 13% 42% 32% 14% 27% 43% 22% 7% 15% 46% 28% 11% Every day Weekly Monthly Never 28 ADP Workforce View in Europe 2018

29 Mental wellbeing neglected by employers Stress is one aspect of mental wellbeing, but there are many others which can impact upon employees performance, engagement and motivation at work. But how many employers are taking steps to encourage a proactive approach to mental health in the workplace? The findings suggest there could be some way to go, with 14% of respondents believing their company has no interest in their mental wellbeing at all, and just over a third (34%) saying they have a low level of interest (ranked between one and four on a ten point scale.) That compares to nearly half (46%) who say that their employer does take an interest (a score of between six and ten), while just 6% say their employer is most interested. A review of the mean scores shows that attitudes vary significantly across Europe, peaking at 6.14 in the Netherlands (where employees are most likely to think their company is interested in mental wellbeing) and dropping to just 3.87 in Poland, far below the European average of In fact, almost a third of Polish employees think their employer is not interested in their mental wellbeing at all, almost five times the rate of counterparts in the Netherlands and Switzerland (7%). Interestingly, older workers are the least likely to think their employer cares about their mental wellbeing, with 16% of the over 55s believing they don't, compared to 11% of those in the youngest age band. ADP Workforce View in Europe

30 What does this mean for HR? In many ways, The Workforce View 2018 reveals a workplace with one foot striding towards the future and one still stuck in the past. On the one hand, organisations and employees are modernising rapidly, harnessing new technologies to transform their operations and how they work. But on the other, we see many of the same people and management issues that have been plaguing employers for years, with the potential to hold back progress if they aren t addressed. A key area for concern is discrimination, with a large portion of the workforce reporting unfair treatment at work, due to their age, gender or some aspect of their background. With legislation already in place to combat the problem, it is vital that employers implement their own equality measures and ensure that these are being adhered to. A combination of employee training and communication, the right processes and procedures, and regular monitoring of progress, will build the foundations for a more equal culture. Another continuing issue is productivity, which has the potential to seriously hamper business and economic growth. Particularly worrying is the fact that bad management is named as the biggest reason why staff aren t able to be at their most productive, ahead of numerous other factors. When what it means to be human in the workplace is shifting, a more human resource is more important than ever. Formal development programmes help managers learn how to respond to the different needs in their teams, while also understanding how to deliver feedback and praise effectively. Equally, stress is an ongoing worry, which can t continue to go unchecked. Wellbeing in the workplace is no longer limited to encouraging physical exercise or healthy eating drives. With reports of rising levels of mental illness across Europe, employers must start to take an active interest in employees mental wellbeing as well. That means having open lines of communication between management and staff, giving employees flexibility where they need it, and considering more formal schemes such as occupational health and employee assistance programmes. And finally, with so much technological change on the horizon, investment in skills is non-negotiable. Automation is happening as we speak, and only looks set to increase. Employees must be prepared to not only work with new technologies, but also retrain to ensure their skills aren t replaced. Without the right investment in training and skills, organisations are likely to find themselves dangerously off-kilter in the not too distant future. So, challenging times for HR and Human Capital Management (HCM) professionals, who must strike a balance between managing the issues of today and laying the ground for the long-term vision. But, as we talk about automation and a robotic workforce, HR and HCM have a unique opportunity. When what it means to be human in the workplace is shifting, a more human resource is more important than ever. It s more important than ever for businesses to get closer to their people. It s time to treat HR and HCM as the gateway to understanding your employees and how you can better engage with them. By looking beyond the spreadsheets and seeing your people unboxed, you can build a workplace that meets their needs and watch your business really thrive. 30 ADP Workforce View in Europe 2018

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32 About ADP (NASDAQ-ADP) Powerful technology plus a human touch. Companies of all types and sizes around the world rely on ADP s cloud software and expert insights to help unlock the potential of their people. HR. Talent. Benefits. Payroll. Compliance. Working together to build a better workforce. For more information, visit ADP.co.uk. For additional resources on The Workforce View in Europe 2018, please visit adp.co.uk/workforceview The ADP logo and ADP are registered trademarks of ADP, LLC. All other marks are the property of their respective owners. Copyright 2018 ADP, LLC.