Four drivers of frontline employee satisfaction and business results

ESP
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By  Ellie Smith, PhD  &  Tara Van Bommel, PhD

Executive summary

A thriving business starts with an engaged workforce. Frontline employees don’t just want their pay packet each month — they want jobs that offer stability, opportunity, and respect. When companies provide fair wages, clear development pathways, and meaningful benefits, employees show up — and they stay, grow, and contribute at higher levels. But with limited resources, where should companies focus to make the biggest impact? Using advanced analytics, our research pinpoints the key actions that move the needle on employee satisfaction, engagement, and intent to stay.

Why should companies invest in improving employee experiences? It’s simple — frontline employees are the backbone of industries worldwide, but in today’s talent-driven market,1 attracting, retaining, and developing them is a continual challenge. Many hold roles with a “sticky floor”2 — characterized by low wages, limited benefits, and few opportunities for advancement. These roles are disproportionately held by women, people from marginalized racial and ethnic groups, and those without higher education degrees.3 By creating good jobs — offering meaningful job rewards and building career ladders for employees to chart a path to job satisfaction — companies can eliminate long-standing barriers and reap the benefits in the form of greater engagement, commitment, and retention.

How to drive frontline employee satisfaction and business outcomes

Frontline employees are the backbone of businesses across Canada, the United Kingdom, and the United States — but too many companies are failing to invest in them. The cost of inaction is staggering: losing just one frontline employee can cost up to $52,000.4

Our research makes the business case clear — companies that prioritize frontline investment see stronger engagement, higher satisfaction, and dramatically lower turnover.

We’ve identified four drivers of frontline employee satisfaction with job rewards and growth opportunities. The data show exactly where satisfaction gaps exist — and, crucially, why. This insight gives companies a clear roadmap for action, pinpointing the specific strategies that boost employee loyalty, performance, and retention.

But there’s no one-size-fits-all fix. Women, for example, report higher dissatisfaction with workplace rewards than men,5 and closing this and other gender gaps requires targeted solutions. Are women seeking advancement for economic security, career growth, or both? Understanding these nuances is critical for designing effective strategies.

The stakes go beyond the workplace. When frontline employees face low pay and limited prospects, financial instability ripples outward — fueling physical6 and mental health struggles,7 family stress, and broader societal inequities.8 Our research finds that employees from economically vulnerable households are most likely to express dissatisfaction with job rewards,9 making workplace equity an urgent business and social issue.

The bottom line? Investing in frontline employees is both a business priority and the right thing to do. Companies that act on our findings and implement frontline-focused strategies will drive stronger retention, engagement, and long-term success. Our roadmap lays out exactly how to get there.

What do we mean by “frontline jobs”?

This report focuses on employees in frontline roles10 directly involved in production, processing, and service delivery in non-office settings that typically do not require higher-education qualifications. In these jobs, employees are required to work in person at a specific physical location (e.g., factory, hotel, restaurant, store) during shifts that may be set or variable and often include hours outside the current Monday to Friday, 9-to-5 paradigm of office work.

Turn challenges into opportunities

Frontline employees are the foundation of industries worldwide, yet too many face low pay, career stagnation, and limited opportunities for advancement. Our research underscores the clear link between fair compensation, professional development, and stronger business outcomes — including higher engagement, commitment, and retention.

While challenges vary across regions, the data tell a consistent story: when companies invest in competitive wages, transparent promotion pathways, and supportive leadership, they don’t just improve employee satisfaction — they build a more stable, committed workforce. Organizations that act on these insights will not only reduce costly turnover but also create workplaces where frontline employees feel valued, empowered, and motivated to contribute at their highest potential.

By prioritizing frontline investment, companies can turn workforce challenges into opportunities, driving long-term success for both their people and their business.

Explore regional insights

Canada key findings:

  • Fair pay, growth opportunities, and supportive leadership drive satisfaction and retention.

    Employees who are satisfied with job rewards and growth opportunities are around ten times more committed, approximately five times more engaged, and nearly three times as likely to stay with their employer compared to those who are dissatisfied.

  • Compensation gaps and lack of recognition fuel dissatisfaction.

    More than half of frontline employees feel underpaid, and many report limited access to career growth and recognition. Without targeted efforts to address these disparities, organizations risk losing valuable talent.

  • Clear pathways for advancement are critical to workforce stability.

    While 65% of frontline employees want to advance in their careers, many lack access to mentorship, training, and fair promotion processes. Employees with frequent access to development opportunities are more than eleven times as likely to be satisfied, emphasizing the need for organizations to invest in career growth and equitable advancement strategies.

Report coming soon!

United Kingdom key findings:

  • Employee satisfaction is key to commitment and retention.

    Catalyst data show that 60% of moderately satisfied frontline employees report being highly committed to their workplace — almost nine times the rate of those who are moderately dissatisfied.

  • Frontline workforce instability poses a major economic risk.

    Nearly half of UK frontline employees consider quitting on tough days, with pay being the top driver of attrition. This puts approximately 6.9 million employees at risk of leaving, potentially costing businesses an estimated £283.6 billion in turnover expenses.

  • Targeted workplace strategies drive engagement and retention.

    Key actions such as increasing transparency, training managers in fair decision-making, providing clear promotion pathways, and ensuring consistent policy application have the strongest impact on frontline employee satisfaction, engagement, and long-term retention.

Read the report

United States key findings:

  • Higher job satisfaction drives stronger business outcomes.

    Employees with higher satisfaction levels in pay, benefits, and career development show a 30%-40% increase in engagement, commitment, and intent to stay.

  • Frontline employees face widespread dissatisfaction, with women disproportionately affected.

    Over half of US frontline employees earn below $20 per hour, far below the national living wage, and women — who hold a significant share of these roles — are overrepresented in the least satisfied group.

  • Investing in pay and career growth delivers high returns.

    A $5 per hour wage increase could generate a 5.2x return on investment, with every $1 spent on pay increases saving approximately $5.20 in reduced attrition costs.

Read the report

Endnotes

  1. Matuson, R. (2024, May 23). Avoiding the talent shipwreck: A leader’s urgent call to action. Forbes; Grossman, C. (2024, January 11). Frontline statistics and trends for 2024 and beyond. Beekeeper.
  2. Berheide, C. (2013). The sticky floor. In V. Smith (Eds.), Volume 2 Sociology of work: An encyclopedia (825-826). Sage reference.
  3. Rho, H. J., Brown, H., & Fremstad, S. (2020, April 7). A basic demographic profile of workers in frontline industries. Center for economic and policy research; Gould, E. & deCourcy, C. (2024, March 21). Fastest wage growth over the last four years among historically disadvantaged groups: Low-wage workers’ wages surged after decades of slow growth. Economic Policy Institute.
  4. Freeman, T., Mugayar-Baldocchi, M., Perez, F., & Salguero, J. (2024, May 6). From hire to inspire: Getting — and keeping — Gen Z in manufacturing. McKinsey.
  5. Satisfaction was measured on a 1-5 scale (1 being very dissatisfied, and 5 being very satisfied) across five categories: base pay, pay increases, advancement opportunities, benefits, and development opportunities. Satisfaction across all five scales were averaged for the aggregate "satisfaction" score. A chi-square test of independence was conducted to examine the satisfaction of men and women frontline employees across Canada, the United Kingdom, and the United States with their workplace benefits. The analysis revealed a significant association, χ² (12, n = 8,990) = 72.64, p <.001, where 57% of women sat in the dissatisfied profile, versus just 41% of men and 2% of another gender. A chi-square test of independence was conducted to examine the satisfaction of men and women frontline employees across Canada, the United Kingdom, and the United States with their base pay. The analysis revealed a significant association, χ² (12, n = 8,990) = 115.17, p <.001, where 61% of women sat in the dissatisfied profile, versus just 37% of men and 2% of another gender. A chi-square test of independence was conducted to examine the satisfaction of men and women frontline employees across Canada, the United Kingdom, and the United States with their company’s approach to pay increases. The analysis revealed a significant association, χ² (12, n = 8,990) = 82.62, p <.001, where 56% of women sat in the dissatisfied profile, versus 43% of men and 1% of another gender. A chi-square test of independence was conducted to examine the satisfaction of men and women frontline employees across Canada, the United Kingdom, and the United States with the professional development their company provides. The analysis revealed a significant association, χ² (12, n = 8,990) = 48.04, p <.001, where 55% of women sat in the dissatisfied profile, versus 43% of men and 2% of another gender. A chi-square test of independence was conducted to examine the satisfaction of men and women frontline employees across Canada, the United Kingdom, and the United States with the opportunities for advancement their company provides. The analysis revealed a significant association, χ² (12, n = 8,990) = 54.23, p <.001, where 56% of women sat in the dissatisfied profile, versus 42% of men and 2% of another gender.
  6. Swarup, S. S., et al. (2024). Cardiovascular consequences of financial stress: A systematic review and meta-analysis. Current Problems in Cardiology, 49(2), 102153.
  7. Weida, E. B., Phojanakong, P., Patel, F., & Chilton, M. (2020). Financial health as a measurable social determinant of health. PloS one, 15(5), e0233359; Ryu, S. & Fan, L. (2023). The relationship between financial worries and psychological distress among U.S. adults. Journal of Family and Economic Issues, 44(1), 16–33.
  8. Hill, H. D., Morris, P., Gennetian, L. A., Wolf, S., & Tubbs, C. (2013). The consequences of income instability for children's well-being. Child development perspectives, 7(2), 85–90; McInnis, N. (2022). Long-term health effects of childhood parental income. Social Science & Medicine, 317, 115607.
  9. Economic vulnerability was measured on 1-4 scale (1 being “enough to meet the main needs of my household with money leftover,” and 5 being “a lot of difficulty meeting the main needs of my household”). This scale was dichotomised into two groups. A univariate ANOVA was conducted to examine the satisfaction of frontline employees based in Canada, the United Kingdom, and the United States from economically vulnerable households with their workplace rewards and benefits, F (1,8,978) = 345.11, p < .001. Economically vulnerable households self-described as experiencing “a lot of difficulty meeting the main needs of my household.” This analysis revealed a significant difference between this group and those who felt they made enough to meet the main needs of their household, and was approaching significant with those who described having “some difficulty meeting the main needs of the household.”
  10. “Frontline” is mostly used in the context of “essential” industries and occupations. (See, for example, Tomer, A. & Kane, J. W. (2020, June 10). To protect frontline workers during and after COVID-19, we must define who they are. Brookings.) However, for the purposes of this research and initiative, we are using the term “frontline” more broadly and beyond the scope of what is counted as essential during a time of crisis such as the Covid-19 pandemic.