The Hidden Workplace Complexities That Are Costing Companies

Businesses today face a long list of challenges, from economic uncertainty to technological disruption and everything in between. But what if the biggest threat to an organization’s performance isn’t an external force, but something within? When complexity collides with these outside challenges, organizational friction often takes over.

Think of friction as all the tangled processes and unnecessary drag that prevent people from doing their best work, things like poor communication, mismatched technology, or misalignment between employee skills and their roles. According to a recent Dayforce survey of 6,000 workers, managers, and executives worldwide, almost all respondents (88%) say organizational friction is a barrier to doing the work they are meant to do.

The research shows workers are losing time and resources on the wrong tasks, waiting hours or even days for answers, and struggling with tools that overpromise but underdeliver. These hidden costs are draining productivity, and forward-thinking HR teams must remove these obstacles so people can focus on the work that matters most.

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The four faces of friction

 There are several culprits causing friction at work, including:

1. Staffing friction

Have you ever had that moment of needing to take time off work and having to scramble to find coverage? According to the report, the challenge of having the right people in the right places at the right time is more complex than ever. Two-thirds of respondents say that work is sometimes left uncovered due to absences, causing leadership to grapple with burnout (51%) and incomplete work (41%).

When there’s no one to cover, workers spend more time scrambling to fill gaps and less time completing high-value tasks. Employers need to manage staffing levels for planned and unplanned absences by getting better visibility into who’s available and where.

2.    Agility friction

The workplace is becoming increasingly complex with shifting organizational structures, requiring agile teams where employees can learn new skills and quickly pivot. But friction is getting in the way of this growth. While 85% of executives believe a company’s skill development helps employees add value, only 54% of workers agree.

Less than half (43%) of respondents say their organization has structured upskilling or reskilling programs, leading to skills gaps and potentially higher attrition of key talent. To foster true agility, learning and development programs must be strategic, continuous, and powered by technology like AI-powered skills tracking, which less than a third of respondents say they currently use.

1. Change friction

While organizational change is a constant, managing it effectively is not. The way a business communicates and implements change can either empower or alienate employees. While 61% of executives believe employees are resistant to change, workers are 20% less likely to share this sentiment. However, only 46% of respondents say their organization is good or very good at communicating change. This highlights an opportunity for organizations: when navigating change, communication with all stakeholders is key. 

2. Technology friction

Technology is supposed to make lives easier, but when it’s not implemented correctly, it just adds to the mess. When it comes to technology at work, outdated technology, underutilized potential, and slow implementation are common issues. This complexity, coupled with a lack of proper training (only 43% of workers say they feel prepared for new tech rollouts), leads to a painful outcome: 66% of respondents say new technologies actually decrease their efficiency.

Making work life better

Addressing and reducing friction at work can help increase productivity, employee morale, and ultimately affect organizational success. It boils down to a few initiatives for HR leaders to tackle:

  • Get smart with workforce intelligence: Use data from your modern HCM systems to make smarter staffing and hiring calls. Know who you have, where they are, and what skills they possess.
  • Give people opportunities to grow: Create clear pathways for internal skill and career development. Find solutions that allow for self-service or happen in the flow of work so growth opportunities don’t get lost among competing priorities.
  • Master change and communication: Provide one central hub for employees to get information on your organization, especially making sure communication channels are open, accessible, and effective during times of change.
  • Reduce the work about work: By simplifying processes and leveraging AI to aiutomate routine tasks, organizations can time spent on administrative work to help people do more meaningful and valuable work.
  • Simplify your tech stack: Ditch the digital clutter. Prioritize integrated HR tech that truly simplifies work, makes data accessible, and helps people focus on what really matters.

The path to a low-friction organization is not about a single solution but a strategic, holistic approach. HR leaders must take a full scan of their organizations, pinpoint those friction points, and implement strategies that empower employees, streamline processes, and create a truly productive workforce.

Read More on Hrtech : Invisible Gaps in Employee Experience: What your HR Tech Metrics aren’t Capturing

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