Communication breakdowns impact productivity, retention, compliance, and trust, from corporate offices to the frontlines
New research from Firstup, the pioneer of intelligent communication and engagement platforms for the workforce, found that nearly half of self-proclaimed “engaged” U.S. and Canadian workers are still likely to seek a new job within the year.
For its State of Employee Engagement Report North America, Firstup surveyed 3,093 U.S. and Canadian workers across corporate, manager, and hourly roles to understand how engaged they are at work. While a majority of corporate employees (82%), managers (89%), and hourly workers (75%) consider themselves engaged or highly engaged, nearly half (43%, 46%, and 40%, respectively) admit they are still likely to seek a new job within the year.
“This disconnect means that engagement alone is no longer a reliable signal of workforce stability,” said Bill Schuh, CEO of Firstup. “Organizations must do more to deliver critical information in a consistent, targeted, and measurable way, especially to the frontline. When employees have to work just to stay informed, engagement can quickly shift to burnout and loss of productivity, not loyalty.”
The research indicates that communication breakdowns, combined with a widespread lack of trust in leadership and HR and a frontline management layer that is overwhelmed and under-resourced, are impacting productivity, retention, compliance, and trust. The result is a workforce that may be “engaged” one day and ready to leave for a new job the next. Key findings include:
- Ineffective communication infrastructure is at the root of the issue. Despite most workers receiving updates from their employers at least once a week, 61%–67% of respondents across roles have missed an important policy or procedural update, and half of managers and hourly workers say their employers do not have an effective way to share information with them.
- There’s a stark divide in AI access. Hourly workers are more likely than corporate employees to believe AI could improve communication (42% vs. 30%), yet 60% have never used AI at work. Across nearly every age group, the primary barrier is not skepticism—it’s access.
- Managers are trusted but overloaded. Managers remain the most trusted source of information, especially compared to HR and leadership, but 70% face challenges communicating with hourly teams. Only 29% feel confident that their current communication keeps workers compliant.
- Hourly workers have a weaker communication experience. Strong communication drives engagement for 52% of managers and 49% of corporate employees, but only 35% of hourly workers. Among disengaged hourly employees, 75% feel their employer does not care about their well-being.
- What employees want is clear, consistent, and nearly universal. Across roles, the top requests beyond pay are the same: they want their employers to show they care (50–52%), improve communication (43–48%), and provide better tools (38–47%).
“Frontline managers are carrying a disproportionate share of communication load, and it’s causing a ripple effect on employee morale and the bottom line,” added Schuh. “AI holds great promise to help address the issue—improving communication, productivity, and efficiency—yet the hourly workers most affected by these communications breakdowns are the least likely to have access to the right tools. To bridge these gaps and drive critical business outcomes like retention and safety, organizations need to prioritize putting the right technology into every worker’s hands.”
The business impact of miscommunication is measurable and broad. Forty-three percent of corporate employees and 37% of managers say they spend three or more hours a week searching for basic information they need to do their jobs, wasting time and effort. Miscommunication drives stress (40–45% across roles), productivity loss (32–40%), missed policies (29–35%), and safety impacts (9–12%). About one in four employees across roles say it makes them want to look for a new job.
Dive into the full report for detailed findings, generational insights, and actionable takeaways here. Join Firstup for an upcoming webinar to dive deeper into the findings.
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