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Dayforce Research: Taming Friction Key to Simplifying Workplace Complexity

1. 84% faced organizational change, impacting productivity significantly. 2. 65% report staffing issues from absenteeism with no coverage. 3. 52% say changes negatively affect employee efficiency. 4. 69% find too many tech platforms reduce efficiency. 5. Employee adaptability is vital for competitive advantage.

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Why Bullish?

The findings suggest a substantial need for DAY's HCM solutions, indicating potential growth in demand. Historical responses to workplace efficiency challenges often lead to increased investment in HCM technologies.

How important is it?

The article highlights significant workforce challenges, suggesting a market opportunity for DAY's HCM solutions.

Why Short Term?

Immediate organizational challenges need swift solutions, likely driving short-term sales for DAY's products as companies seek to enhance productivity.

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88% of respondents say there is friction in their work environment, including ineffective communication, overly complicated processes, and lack of resources July 15, 2025 08:00 ET  | Source: Dayforce, Inc. MINNEAPOLIS and TORONTO, July 15, 2025 (GLOBE NEWSWIRE) -- Dayforce, Inc. (NYSE: DAY; TSX: DAY), a global human capital management (HCM) leader that makes work life better, today released a report, Fighting workforce friction to power productivity, that explores types of workplace friction – staffing, agility, change, and technology - and the consequences of them. Findings show widespread organizational challenges are hurting productivity and the bottom line by keeping people from doing the work they’re meant to do. With a majority (84%) of respondents saying they have faced organizational change in the past 12 months, this new research dives into how friction is experienced by workers, managers, and executives to help leaders drive simplicity at scale and ensure their people are doing work that drives results. Conducted by Hanover Research, the survey included 6,178 workers, managers, and executives from companies with at least 100 employees. The findings highlight opportunities to enhance speed and agility, while also improving the employee experience. "Technology disruption and a fluid operating environment are creating friction across organizations, leading to frustrated employees and wasted time and resources," said Steve Holdridge, President and Chief Operating Officer, Dayforce, Inc. "Tackling this complexity crisis requires reducing friction caused by poor communication, mismatched technology, and aligning worker skills with defined roles. For leaders, this means creating clear goals, delivering proper skills training, and equipping their people with the tools they need to do the work they’re meant to do.” The report identified four types of friction organizations need to address: Staffing friction: Almost two-thirds (65%) of workers said that when someone calls in sick at their organization, there is often no one to cover their work. Meanwhile, middle managers say that workforce scheduling (36%) and accurately forecasting labor needs (31%) are among their biggest workforce planning challenges. Employing workforce planning technology can help managers by improving staffing flexibility and ensuring that schedules comply with relevant regulations.Agility friction: Respondents were clear that in today's environment adapting and optimizing their workforce with speed is key to competitive advantage, but more than half (51%) said they could add more value to their organization in a different role. At the same time, only 43% said their organization has a structured process of upskilling or reskilling employees. Creating defined career paths and development opportunities can improve agility and retention.Change friction: More than half (52%) of respondents say that organizational changes at their company negatively impact employee efficiency and only 44% say their organization is good or very good at communicating change. Prioritizing communication during change management planning can help employees navigate change and focus on important tasks.Technology friction: More than two-thirds (69%) of respondents say their organization uses too many technology platforms, while nearly the same amount (66%) at least slightly agree that adopting new technologies at work often reduce efficiency instead of improving it. Reducing complexity with fewer platforms and modern technology can make adoption smoother and get people back to focusing on high-value tasks. Additional Information Download the report: Fighting workforce friction to power productivityRead the blog: Growth beyond grind: What new Dayforce research reveals about workplace friction Survey Methodology Hanover Research conducted the organizational friction survey from Dayforce online from April 14 to May 1, 2025. The study included 6,178 respondents aged 18+ who work at companies with at least 100 employees across Australia, Canada, Germany, New Zealand, the United Kingdom, and the United States. Our Organizational Friction Index was calculated based on respondents' answers to nine questions about organizational changes, organizational complexity, and technological complexity. Each respondent was assigned an Organizational Friction Score, and the Index was created by designating those scores as low, medium, or high friction. About Dayforce Dayforce makes work life better. Everything we do as a global leader in HCM technology is focused on enabling thousands of customers and millions of employees around the world do the work they're meant to do. With our single AI-powered people platform for HR, Pay, Time, Talent, and Analytics, organizations of all sizes and industries are benefiting from simplicity at scale with Dayforce to help unlock their full workforce potential, operate with confidence, and realize quantifiable value. To learn more, visit dayforce.com. Media ContactNick de Passnick.depass@dayforce.com(226) 972-5962

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