Express Employment Professionals

However, Offering All Desired Benefits Impossible

Latest Results from The Harris Poll

OKLAHOMA CITY — Offering all the benefits employees want is seemingly impossible, according to a recent Express Employment Professionals-Harris Poll survey. However, companies appear tuned in to the advantages benefits may provide — including attracting and retaining employees, as well as potentially easing turnover rates.

Nearly half of U.S. hiring managers (48%) report more employees at their company have asked for better benefits this year, compared to last year, because of an increase in the cost of living. But delivering on this expectation may not be possible for all. Two-thirds feel it’s impossible to offer all the benefits employees want now (66%).

While half of hiring managers (50%) anticipate their company’s traditional benefits will remain the same next year, it appears some companies are trying to meet the demands. More than 2 in 5 (42%) report their company plans to increase benefits in 2024 — up from the second half of 2022, where 37% planned to increased benefits in 2023.

Seventy percent of hiring managers say their company has modified benefits specifically in the hopes of retaining current employees or attracting new ones.

Around 3 in 10 report they have offered cost of living raises (31%) and/or increased the amount of paid time off offered to employees (27%). Others say their company has offered customizable benefits packages (21%), offered additional healthcare incentives such as a gym membership or mental health resources (21%) and/or increased the amount of sick leave available (21%).

These modifications may even help to alleviate turnover, as better benefits and perks being offered at other companies are thought to be contributing to employees’ desire to look elsewhere for employment.

Reducing Benefits

As the labor market has softened and employment costs have soared, Express experts across the country said clients are pulling back on the generous benefits that were extended not too long ago.

“Clients have stepped back from attendance awards, retention bonuses and even referral bonuses,” said Nancy Reed, Express franchise owner in Texas. “They don’t think they need to be offering so many bonuses now that there are more people available seeking employment.”

Companies were forced to be creative with retention efforts coming out of the COVID-19 pandemic due to record unemployment, and Express franchise owner Alyssa Chumbley in Indiana cites examples such as an onsite meal service, 30-minute arrival grace windows, shorter shifts and money for “shout-out” appreciation gift cards given between coworkers.

“The creativity of benefit options has dwindled, and the extension of offerings are less abundant,” Chumbley said. “However, flexibility in screening and onboarding, in addition to schedule flexibility once hired, continues to be apparent in order to retain employees.”

Despite the availability of more workers in the current labor pool, continuing to shape a healthy company culture should be top of mind for business owners to avoid affecting the bottom line.

“Turnover can cost as much as up to 150% of the departing employee’s salary, not to mention the strain on the remaining staff,” said Bill Stoller, Express Employment International CEO. “It’s not feasible to offer every desired benefit but choose the ones that resonate the most with your workforce. Investing in people is what makes them stay.”

Survey Methodology
The Job Insights survey was conducted online within the United States by The Harris Poll on behalf of Express Employment Professionals between Oct. 31 and Nov. 10, 2023, among 1,007 U.S. hiring decision-makers.

For full survey methodologies, please contact Sheena.Hollander@ExpressPros.com, Director of Corporate Communications & PR.

If you would like to arrange for an interview to discuss this topic, please contact Sheena.Hollander@ExpressPros.com, Director of Corporate Communications & PR.

Unprofessional Behavior Likely to Cost Offers Latest Results from The Harris Poll

OKLAHOMA CITY — Despite expecting professionalism in interviews, U.S. hiring managers say they’ve seen it all from candidates — and job seekers report they have a few wild stories to tell about recruiters, too.

This is according to a recent Express Employment Professionals-Harris Poll survey.

National Broadcast Hosted by Express Employment Professionals

OKLAHOMA CITY — Hear from top industry leaders in staffing and market research in the latest virtual installment of ExpressTalks: Equipping Business Leaders for the Year Ahead on Tuesday, March 26.

Participants will hear from experts Sheena Hollander, International Spokesperson, Director of Corporate Communications & PR at Express Employment International, and Latoya Welch, Vice President, Research for Public Release for The Harris Poll, as they take a deep dive into hiring decision-maker and job seeker survey data that reveals challenges for the months ahead, but also several opportunities.

The free, one-hour webinar starts at 11:30 a.m. CDT on Tuesday, March 26, and attendees can register online at ExpressPros.com/ExpressTalks.

Come away with data-driven knowledge to:

• Create experiences employees need and expect from their employers
• Ideate sustainable benefits that positively impact your organization
• Mitigate unexpected turnover and initiate practices to retain skilled staff

About the Experts

Hollander boasts a Bachelor of Arts in Journalism and Mass Communication and Master of Public Administration from the University of Oklahoma and began her career at the United Way of Central Oklahoma. Building on her business development, operational management and communications expertise, she transitioned to Ackerman McQueen, a national advertising and media agency, serving as Vice President in the Office of the Chief Operating Officer where she worked on matters related to business operations, strategic and crisis communications, client relations, new business outreach and personnel with various national clients.

At Express, Hollander manages the Corporate Communications Team, overseeing media relations, social media/branding, external communications, crisis management and community relations efforts for nearly 900 franchise locations globally.

Fellow presenter Welch has provided market research and consulting services to her clients for more than 15 years and has worked at The Harris Poll since 2014. As a Vice President on the Research for Public Release Team, Welch provides end-to-end management of quantitative research, offering actionable intelligence and strategic recommendations to help shape her clients’ communication programs.

She received a Bachelor of Science degree in Economics with a dual concentration in Marketing and Communication from The Wharton School at the University of Pennsylvania. Welch also earned a Master of Arts degree in Communication Management from the Annenberg School for Communication at the University of Southern California.

Prior to joining The Harris Poll, she worked in the research arm of several well-known public relations agencies, including Edelman, Ogilvy and MSLGROUP.

“Our longtime partnership with The Harris Poll has proven to be invaluable, providing real-time feedback from both hiring managers and job seekers that paints a more complete picture of the workforce,” said Express Employment International CEO Bill Stoller. “Armed with this data and insight from our expert speakers, leaders can feel confident about implementing relevant takeaways at their businesses and organizations.”

This program has been approved for 1 HR credit hour with SHRM, HRCI, HRPA and CPHR.

If you would like to arrange for an interview to discuss this topic, please contact Sheena.Hollander@ExpressPros.com, Director of Corporate Communications & PR.

Demonstrating Passion for the Role Key for Job Seekers Latest Results from The Harris Poll

OKLAHOMA CITY — As companies receive applications, information and candidates may blend — but U.S. hiring managers say certain factors can help prospective employees stand out.

This is according to a recent Express Employment Professionals-Harris Poll survey.

Demonstrating passion for the role (52%), quantifying their achievements (43%) and showing that they’ve researched the company (43%) are among hiring managers’ top methods for a candidate to stand out to their company.

Having a personal referral from someone who works at the company (38%), showing their creativity (36%) and keeping the resume short/concise (36%) may also be beneficial.

Beyond Tangible Qualifications

About half of job seekers believe, to a company, dependability (52%) and work ethic (49%) are absolutely essential skills/traits for a candidate to possess when applying for a job.

At least 2 in 5 also believe communications skills (45%), ability to work well in a team (43%), willingness to learn (43%) and time management skills (40%) are also absolutely essential.

Perhaps a sign of a shift in the generational workforce, Millennials, Gen X and boomers/seniors are more likely to consider dependability absolutely essential compared to Gen Z (50%, 58%, 64% vs. 29%). However, Gen Z is far more likely to consider problem-solving skills absolutely essential compared to Millennials and Gen X (56% vs. 38%, 36%).

Distinguished From the Competition 

As U.S. job seekers consider which skills/traits may be important to have, they also think about the ways to stand out when applying to a job.

Nearly half of U.S. job seekers say that demonstrating passion for the role (48%) or quantifying achievements (48%) will make them stand out.

At least one-third also believe that keeping their resume short/concise (38%) or showing their creativity (33%) will separate them from the competition.

No more than 3 in 10 believe reaching out to the company (30%), having a visually appealing resume (30%), including links to relevant work (26%), including contact information upfront (23%), connecting on social media (15%) or including a photo (13%) would be beneficial.

Women are more likely than men to believe that demonstrating passion for the role (56% vs. 43%), showing they’ve researched the company (49% vs. 40%), having a personal referral from someone who works at the company (49% vs. 37%) or including a cover letter with the application (38% vs. 25%) would help them stand out.

“In the competitive landscape of job interviews, it is vital for candidates to grasp the importance of standing out,” said Bill Stoller, Express Employment International CEO. “It is not merely about meeting basic qualifications, but surpassing expectations with distinct strengths and qualities that make a lasting impact.”

Survey Methodology

The Job Insights survey was conducted online within the United States by The Harris Poll on behalf of Express Employment Professionals between Oct. 31 and Nov. 10, 2023, among 1,007 U.S. hiring decision-makers.

The Job Seeker Report was conducted online within the United States by The Harris Poll on behalf of Express Employment Professionals from November 9 to 26, 2023, among 1,002 adults ages 18 and older.

For full survey methodologies, please contact Sheena.Hollander@ExpressPros.com, Director of Corporate Communications & PR.

If you would like to arrange for an interview to discuss this topic, please contact Sheena.Hollander@ExpressPros.com, Director of Corporate Communications & PR.

OKLAHOMA CITY — Conquering the climb of 2023, Express Employment Professionals franchisees from across the world recently gathered in Denver, Colorado, to celebrate a year of top sales and achievements as part of the staffing giant’s annual International Leadership Conference (ILC).

The event featured Academy Award winning actress Goldie Hawn and Deion “Prime Time” Sanders, head football coach at the University of Colorado, as well as networking and trainings for roughly 1,500 attendees.

“With hundreds of locations internationally, ILC is such a special time of fellowship each year that feels like a family reunion,” said Bill Stoller, Express Employment International CEO. “It is an honor to be surrounded by the best and brightest in the business and leave energized, armed with new knowledge and resources for the months ahead.”

Emphasizing the humanization of the hiring and employment process in a time when AI is rampant, Express Employee of the Year Kyle West took the stage to accept the symbol of gratitude for his commitment to bettering both his personal and professional lives.

When West was 16, circumstances beyond his control left him homeless and living out of his car. Determined to overcome the situation, he developed a five-year plan, committed to doing the work and turned that vision into a reality.

West was initially sent on assignment as an operator at a client company, but his reliability and strong work ethic earned him a promotion to department lead, and later, supervisor. He remains with the company and is now in charge of contracting with Express for additional operators.

“I love my job here and have been promoted,” West said. “I like to meet with people and tell them a little bit about my story and encourage them along the way. We all have tough times. I’m here to show you that you can get out of those situations with hard work and dedication.”

Express franchise owners Ronnie and Susan Morris were also recognized from the stage as this year’s Franchisees of the Year for their perseverance and investment into other franchisees.

After joining Express in 2010 and opening their first location, Ronnie and Susan followed the system, stayed engaged and began their ascent — putting thousands of people to work and expanding their footprint to eight offices.

As the country experienced tighter labor markets, the duo advocated for giving job seekers another chance at finding work, despite their past mistakes, and even piloted a program based on second chances. And when COVID-19 struck, they kept associates employed and businesses open.

As they found success, they never lost their connection to the community — becoming deeply involved in multiple charities and organizations, including the American Cancer Society, JDRF and their local business chambers, among others.

“To say this husband-and-wife team has magnetic personalities would be an understatement,” Stoller said. “Their innate ability to immediately connect with others might be one of the reasons you frequently see them surrounded by fellow franchisees and team members. Their tremendous efforts and contributions have not been overlooked by their community or Express. We are honored to bestow the recognition of Franchisees of the Year on this most-deserving team.”

Express boasts more than 860 franchise locations in five countries across the globe, garnering $4.1 billion in sales and employing 492,000 associates in 2023.

If you would like to arrange for an interview to discuss this topic, please contact Sheena.Hollander@ExpressPros.com, Director of Corporate Communications & PR.

Awarded 51 Franchise Agreements Internationally

2023 Highlights

• Revenues of $4.1 billion in the U.S., Canada, South Africa, Australia and New Zealand
• Office Count: 862
• Employed 492,000 associates
• Client Partners: 73,000

OKLAHOMA CITY — Notching the third-best year for sales in the staffing company’s more than 40-year history, Express Employment Professionals saw revenues of $4.1 billion in 2023, employing 492,000 associates at 862 franchise locations across the globe.

Franchise expansion consisted of awarding 51 franchise development agreements, including locations in Ohio, Alabama, Texas, Maryland and South Africa.

“With the surge in demand for top talent over the past few years, Express franchise owners and their staff have risen to the occasion, propelling us to record-setting numbers once again,” Express Employment International CEO Bill Stoller said. “We are not only meeting but exceeding the needs of our clients, and I am humbled by the trust they have placed in us.”

Express earned several recognitions throughout 2023, including designations on the following lists:

• Entrepreneur: Franchise 500 List and Best in Category for the 12^th consecutive year, Franchise 500 Hall of Fame, Fastest Growing Franchises, Top Global Franchises, Top Franchises for less than $150,000, Best 150 Franchises for Multi-Unit Owners and Top Franchises for Veterans
• Forbes: America’s Best Professional Recruiting Firms and America’s Best Temp Staffing Firms
• Staffing Industry Analysts: Fifth-Largest U.S. Staffing Firm, Second-Largest U.S. Industrial Staffing Firm, Third-Largest U.S. Office/Clerical Staffing Firm, Largest U.S. Direct Hire Firms, Top 50 Providers of Direct Hire Services Globally and 13^th-Largest Global Staffing Firm
• Franchise Business Review: Top Franchise Culture, Top Recession-Proof Franchises, Most Innovative Franchises, Most Profitable Franchises, Top Franchises for Veterans and Top Franchises
• ClearlyRated: Best of Staffing® Client Diamond Award
• Franchise Direct: Top 100 Global Franchises
• Franchise Times: Top 400 (#25)
• Franchise Research Institute: World Class Franchise Since 2006

Kicking off 2024, Forbes has already recognized Express as one of America’s Best Large Employers, and Newsweek named the company one of America’s Greatest Workplaces for Women.

Express is also proud to announce the rebranding of its healthcare staffing entity, now known as Express Healthcare Staffing.

“As we navigate this year’s opportunistic market conditions, our commitment remains unwavering: to bridge the gap between exceptional companies and quality job seekers,” Stoller said. “Together, we continue to set new standards in the industry, and I am excited for the future as we build upon this foundation of success.”

If you would like to arrange for an interview with Bill Stoller to discuss this topic, please contact Sheena Hollander, Director of Corporate Communications and PR, at (405) 717-5966.

Exiting Workers Cost Businesses $36,295 Annually

Latest Results from The Harris Poll

OKLAHOMA CITY — Thirty-three percent of U.S. hiring managers anticipate employee turnover at their company to increase in the next year, costing an average of $36,295 (e.g., cost to rehire, lost productivity) annually.

Significantly, more than 20% of hiring managers say that number climbs to $100,000 or higher.

This is according to a recent Express Employment Professionals-Harris Poll survey.

For those who anticipate increased turnover in 2024, many point to better pay/benefits offered elsewhere (38%), increased workplace demands (35%), employees resigning (33%), employee feelings of being overworked (31%) and the competitive job market (26%) as the cause.

Around a quarter believe it will be due in part to better perks being offered elsewhere (e.g., summer Fridays, unlimited vacation days) (23%), employees being terminated (23%), employees retiring (23%) and better company culture elsewhere (21%).

Turnover Fallout

Turnover not only takes a toll on the company, but also the remaining employees — nearly three-quarters of hiring managers (73%) say employee turnover places a heavy burden on existing employees.

In an effort to counteract this turnover and perhaps give some reprieve to their employees, the overwhelming majority of companies (88%) are making plans to hire next year — a significant increase since last year (81%).

Typically, companies are hiring either to increase their overall employee count (45%) or to keep the same level of employees (36%).

Building Blocks for Turnover Solutions

In any business, turnover is unavoidable. Employee movement within the workforce is natural and can be attributed to various factors. From affecting productivity to engagement, excessive turnover can wreak havoc on even the most established business’ ability to stay competitive.

While best retention practices come in many shapes and sizes, they’re all linked by the same basic idea—employees are a company’s most valuable asset.

Express has identified eight building blocks for turnover solutions with full details available at ExpressPros.com/TurnoverSolutions:

1. Understanding That Turnover is a Balance: Turnover can be healthy for an organization to an extent such as underperforming team members, someone has checked out with retirement on the horizon, or an employee lacking motivation because they aren’t happy in their role.
2. The Cost of Turnover: Studies show the actual cost to replace an employee is significant. Depending on a variety of factors — including skill level, education and experience — the total cost of turnover can be as high as 150% of an employee’s annual salary.
3. Understand the Expectations of Turnover: Acknowledging that turnover is common in the employment cycle, organizations that delve into the complexity of expected turnover rates gain a pivotal advantage in proactive management.
4. Avoid Retention Roadblocks: Positive retention habits are the best defense against negative turnover. Time wasters can impede progress and reduce the effectiveness of turnover management efforts.
5. Creating a Culture that Prevents Turnover: While the upfront costs may seem significant, the long-term benefits can outweigh the expenses — prioritize maintaining the well-being and job satisfaction of your employees.
6. Employee Engagement is Key: Programs that foster a positive and inclusive workplace culture, provide opportunities for professional development and recognize and reward employee contributions can improve engagement.
7. Manage Employees’ Expectations of Success: It’s critical to be upfront with expectations to help mitigate turnover and ensure employees are prepared to stay.
8. Support a Multi-Generational Friendly Workplace: As organizations strive to create inclusive environments that cater to the needs and preferences of individuals spanning different age groups, they will learn how to leverage the collective strengths of diverse experiences as an opportunity to improve.

“High turnover in the booming jobs market of the past few years has led to a strained workforce that is stressed and burned out,” said Bill Stoller, Express Employment International CEO. “With data showing more employees are remaining in place, now is the perfect time to create retention tactics to stabilize headcount with top talent.”

Survey Methodology
The Job Insights survey was conducted online within the United States by The Harris Poll on behalf of Express Employment Professionals between Oct. 31 and Nov. 10, 2023, among 1,007 U.S. hiring decision-makers.

For full survey methodologies, please contact Sheena.Hollander@ExpressPros.com, Director of Corporate Communications & PR.

If you would like to arrange for an interview to discuss this topic, please contact Sheena.Hollander@ExpressPros.com, Director of Corporate Communications & PR.

New Survey From Express Employment Professionals

Latest Results from The Harris Poll

OKLAHOMA CITY — While U.S. hiring managers and job seekers feel career advancement is valuable, many job seekers are more focused on achieving personal fulfillment and work/life balance.

This is according to a recent survey from The Harris Poll commissioned by Express Employment Professionals.

More than half of employed job seekers (56%) feel they are performing above and beyond at their company now compared to a year ago — and hiring managers are seeing similar effort (53%).

From the perspective of hiring managers, the definition of professional success for employees is advancing in their careers (73%). And 58% report that the only way for employees to achieve professional success at their company is to “climb the corporate ladder.”

Around 7 in 10 job seekers (71%) are similarly aligned on the definition of professional success (i.e., advancing in their career) and believe climbing the corporate ladder is the only way employees can achieve this (57%).

Most hiring managers also feel the best way for employees to add value to a company is advancing their careers (70%) — a similar proportion of job seekers concur (71%).

Meaningful Work vs. Advancement

Despite a strong majority of job seekers (86%) and hiring managers (83%) saying most employees want to advance in their careers, 57% of job seekers say they are not interested in “climbing the corporate ladder.” Workers appear more focused on personal fulfillment and balancing their personal and professional lives.

Most job seekers say it is more important to them to have a meaningful job than a high-level job title (83%) and define success more by work/life balance than climbing the corporate ladder (80%).

More than 4 in 5 hiring managers report similar perspectives; 85% say it is more important for workers to have a meaningful job than a high-level job title, and 84% report more employees define success by work/life balance than climbing the corporate ladder now compared to three years ago.

As a result, workers may choose to remain in their current role. However, more than half of hiring managers (55%) feel employees who have no desire to advance are looked upon negatively at their company; 64% of job seekers agree.

When thinking of employees who don’t wish to advance their careers, more than half of hiring managers (55%) describe employees negatively — most commonly linking these employees with a lack of drive (34%), being uncommitted (22%) and unengaged (22%). And more than half of hiring managers (56%) report employees who are not interested in “climbing the corporate ladder” have less long-term potential in their company.

While some companies seemingly desire employees with the drive to rise through the ranks, nearly 9 in 10 hiring managers (89%) agree that employees who are content in remaining in their current role still contribute to the success of a company. In addition, these employees may be thought of as more self-aware, as around a quarter of hiring managers describe them as knowing their limit (25%) and knowing what they want (24%).

“Whether it’s an entry-level position or an executive role, every job contributes significantly to the overall functionality and success of the workforce,” said Bill Stoller, Express Employment International CEO. “People’s ambitions vary, but one thing that all employees should have in common is to find continuing education opportunities to excel in their duties and always strive for improvement.

“Businesses would also be prudent to discover how team members individually define purpose to avoid mistaking contentment with complacency.”

Survey Methodology
The Job Insights survey was conducted online within the United States by The Harris Poll on behalf of Express Employment Professionals between June 13 and June 26, 2023, among 1,010 U.S. hiring decision-makers.

The Job Seeker Report was conducted online within the United States by The Harris Poll on behalf of Express Employment Professionals between June 13 and June 26, 2023, among 1,006 adults ages 18 and older.

For full survey methodologies, please contact Sheena.Hollander@ExpressPros.com, Director of Corporate Communications & PR.

If you would like to arrange for an interview with Bill Stoller to discuss this topic, please contact Sheena.Hollander@ExpressPros.com, Director of Corporate Communications & PR.

Latest Results from The Harris Poll

OKLAHOMA CITY — Most American companies have lost employees to retirement the past two years, taking valuable institutional knowledge and experience with them.

One possible solution? Mentorship programs.

While not a new concept, mentorship programs are gaining popularity as a way to combat this brain drain (i.e., when older employees retire without sharing knowledge of how to do their job to younger generations) and accelerate recruiting and retention in the current prolonged labor shortage.

This is according to a recent survey from The Harris Poll commissioned by Express Employment Professionals.

U.S. hiring managers report the top reasons for retiring at their company as reaching what employees believe to be retirement age (65+ years old) (47%), no longer wanting to work (40%) and feeling they have enough money saved to retire (39%).

Job seekers’ perceptions regarding reasons for retirement are similarly aligned — feeling they have enough money saved to retire (58%), reaching what they believe to be retirement age (65+ years old) (53%) and no longer wanting to work (51%).

Regardless of the age of retirement, hiring managers and job seekers agree employees should retire whenever they are financially able to do so (84% and 85%, respectively).

Benefits of Mentorship

Although many companies don’t currently offer mentorship programs, hiring managers and job seekers see the benefits in doing so.

Around two-thirds of hiring managers (64%) say their company currently offers on-the-job training/upskilling followed by mentorship programs (40%) and reskilling (31%). Among those that offer mentorship programs, most cite doing so as a means of upskilling/reskilling employees (81%).

Around half offer this program to attract prospective employees (53%) and cultivate greater connection between employees (52%). Additionally, around 2 in 5 companies offer it to reduce brain drain (41%) and keep older employees engaged (40%).

For companies that do not currently have a mentorship program in place, more than half (52%) say they are likely to do so in the next two years.

Hiring managers who have not implemented mentorships feel the ability to upskill/reskill employees (54%), attract prospective employees (34%) and cultivate greater connections between employees (30%) are among the top benefits of offering the program in the future. Job seekers believe similar benefits are available when offering mentorship programs: upskill/reskill employees (70%), cultivate greater connections between employees (49%) and reduce brain drain (43%).

Around 4 in 5 hiring managers (82%) believe job candidates are more attracted to companies offering mentorship programs — 85% of job seekers concur; companies are more attractive to them if they offer a mentorship program.

And, as employees retire and companies search for a method to bridge the potential knowledge gap, mentorships may prove to be a viable option. More than 4 in 5 hiring managers (83%) feel these programs are absolutely essential in reducing “brain drain.”

“A mentorship program in companies is like a shortcut to success,” said Bill Stoller, Express Employment International CEO. “It’s a practical way to transfer knowledge, refine skills and foster a culture of continuous improvement. By connecting experienced individuals with those eager to learn, companies not only boost employee development but also build a stronger, more collaborative workforce.”

Survey Methodology

The Job Insights survey was conducted online within the United States by The Harris Poll on behalf of Express Employment Professionals between June 13 and June 26, 2023, among 1,010 U.S. hiring decision-makers.

The Job Seeker Report was conducted online within the United States by The Harris Poll on behalf of Express Employment Professionals between June 13 and June 26, 2023, among 1,006 adults ages 18 and older.

For full survey methodologies, please contact Sheena.Hollander@ExpressPros.com, Director of Corporate Communications & PR.

If you would like to arrange for an interview with Bill Stoller to discuss this topic, please contact Sheena.Hollander@ExpressPros.com, Director of Corporate Communications & PR.

Latest Results from The Harris Poll

OKLAHOMA CITY — Job seekers’ and employees’ desire for flexibility has upended the workforce, and while the majority of both groups don’t believe that 1099 employment is simply a fad (66% job seekers and 58% hiring managers), more than 7 in 10 believe it will never replace traditional employment (72% and 75%, respectively).

This is according to a recent survey from The Harris Poll commissioned by Express Employment Professionals.

Despite signaling plans to hire full-time staff, companies appear to have a growing interest in alternative hires. Nearly 3 in 10 (29%) are planning to hire seasonal, temporary or contract workers. This intention aligns with the trends observed in the second half of 2022, where 28% of companies expressed similar hiring plans.

Currently, nearly half of U.S. hiring managers (47%) say their businesses employ 1099 workers, and 29% do not currently but have done so in the past. Only 24% say they’ve never employed 1099 workers.

1099 workers, also known as independent contractors or gig workers, are self-employed individuals or freelancers who are hired by businesses on a project basis. They receive payment for their services and are responsible for handling their own taxes, including income and self-employment taxes.

W-2 workers, on the other hand, are considered employees of a company, and their employer withholds income taxes, Social Security and Medicare taxes from their paychecks. They could also be eligible for certain benefits.

Among companies that employ 1099 workers, hiring managers say 38% of the company’s production or work, on average, is completed by such workers. Nearly three-quarters of hiring managers whose companies use 1099 workers (73%) report doing so when they aren’t able to fill open positions with full-time employees.

Disadvantages of 1099 Employment 

While companies appear drawn to the flexibility of utilizing 1099 workers, employees may be similarly inclined. More than 2 in 5 hiring managers (45%) are concerned their company will lose employees to 1099 opportunities. In addition, companies report that over the past two years they have already lost 23% of their employees, on average, to this type of work.

However, in a similar survey conducted by The Harris Poll, respondents conceded there are disadvantages to the 1099 classification vs. W-2 status, such as:

• Lack of career support as a gig employee: 70%
• An unreliable means for long-term financial stability: 69%
• Less leverage as a gig employee than traditional W-2 employee: 65%
• Lack of proper compensation: 61%
• Feeling isolated as a gig worker compared to traditional W-2 employee: 57%
• Don’t have the means to develop skills as a gig employee: 46%

“W-2 work provides the perfect blend of flexibility and security, allowing individuals to pursue their passions while enjoying the stability of traditional employment,” said Bill Stoller, Express Employment International CEO. “It fosters a sense of unity and belonging, making employees feel like valued members of a team rather than solitary contributors, and allows them to experience the camaraderie and shared purpose that comes with working alongside colleagues in a supportive organization.”

Survey Methodology
The Job Insights survey was conducted online within the United States by The Harris Poll on behalf of Express Employment Professionals between June 13 and June 26, 2023, among 1,010 U.S. hiring decision-makers.

The Job Seeker Report was conducted online within the United States by The Harris Poll on behalf of Express Employment Professionals between June 13 and June 26, 2023, among 1,006 adults ages 18 and older.

The Gig Worker survey was conducted online within the U.S. by The Harris Poll from August 18th to 20th, 2023 among a nationally representative sample of 1,989 U.S. adults, where 746 have worked as gig employees before.