Dayforce, Inc. (NYSE: DAY; TSX: DAY), a global human capital management (HCM) leader, has released a new report, Fighting workforce friction to power productivity, examining how workplace friction impacts employees, managers, and executives. The study reveals that 88% of respondents experience friction in their work environments, stemming from ineffective communication, complex processes, and lack of resources — ultimately hindering productivity and business outcomes.

With 84% of respondents reporting organizational change within the past year, the research provides insights into how different types of friction are experienced across the workforce. Conducted by Hanover Research, the survey included 6,178 participants from companies with 100 or more employees, highlighting opportunities for leaders to simplify operations and enhance 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 COO of Dayforce. “Tackling this complexity crisis requires reducing friction caused by poor communication, mismatched technology, and aligning worker skills with defined roles. Leaders must set clear goals, provide proper skills training, and equip their people with the right tools to succeed.”

Four Types of Workplace Friction Identified

  • Staffing Friction: Nearly two-thirds (65%) of workers said that when someone calls in sick, their work often goes uncovered. Middle managers cited workforce scheduling (36%) and accurate labor forecasting (31%) as key challenges. Leveraging workforce planning technology can improve scheduling flexibility and compliance.
  • Agility Friction: More than half (51%) of respondents believe they could add greater value in a different role, yet only 43% said their organization has structured upskilling or reskilling programs. Establishing clear career paths can boost agility and retention.
  • Change Friction: Over half (52%) said organizational changes negatively impact efficiency, and only 44% felt their company communicates change effectively. Prioritizing clear communication during transitions can help employees stay focused.
  • Technology Friction: More than two-thirds (69%) of employees said their organization uses too many platforms, and 66% agreed new technologies often reduce efficiency instead of improving it. Streamlining technology stacks can reduce complexity and enhance adoption.

Additional Resources

Survey Methodology

The survey, conducted between April 14 and May 1, 2025, gathered responses from 6,178 workers, managers, and executives aged 18+ across Australia, Canada, Germany, New Zealand, the UK, and the US. Dayforce’s Organizational Friction Index was developed from participants’ answers about organizational changes, complexity, and technology adoption, categorizing companies into low, medium, or high friction groups.

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