Workspan Daily News Bytes for May 1, 2026

Compensation Remains Lowest Employee Engagement Driver

While overall engagement is holding steady, several drivers that matter most to productivity, retention and strategic execution aren’t improving at the same pace, according to a 2026 Employee Engagement Trends Report by HR research and advisory firm McLean & Company.

The report’s key findings revealed:

Total compensation remains the lowest-scoring driver at 52%, with little improvement year over year.
Career advancement and development continues to lag at 58% and remains the top reason employees leave organizations.
Department collaboration remains low at 54%, with no improvement reported since 2022, underlining ongoing communication challenges.
Employee stress is rising, with 40% reporting higher job-related stress compared to the previous year.
Leadership capability gaps persist, with only 23% of leaders rated as highly effective at coaching employees.

“Employee engagement may be stable, but stability can be misleading,” said Amanda Chaitnarine, the firm’s senior director of human resources diagnostics. “Without strengthening the core drivers behind engagement, organizations risk plateauing performance instead of improving it. HR leaders need to move beyond measurement and focus on targeted action.”

To better translate engagement into business impact, the report recommended a more targeted, action-oriented approach to CHROs and HR leaders:

Prioritize employee experience as a driver of productivity, performance and retention.
Strengthen career development pathways to improve engagement and reduce turnover risk.
Align total rewards strategies with employee expectations to address ongoing compensation concerns.
Improve cross-functional collaboration by addressing communication gaps and enabling better teamwork.
Build leadership capability in coaching and feedback to better support employee growth and development.

Hiring Momentum Spurs CHRO Confidence

Confidence among U.S. chief human resource officers (CHROs) has hit a new high, according to a survey by global, nonprofit think tank The Conference Board.

The surge in hiring expectations and employee engagement pushed the CHRO Confidence Index to a new high of 59, the strongest reading since the series began in the first quarter of 2023. (A reading above 50 reflects more positive than negative responses.)

When asked if they expect to hire more employees in the next six months:

59% of the surveyed CHROs expect to increase their hiring in the first half of 2026 — up from 54% in Q4 2025.
17% expect to decrease their hiring over the next six months — up slightly from 15% in Q4 2025.

When asked if they expect employees to be committed, motivated and connected to their work and the organization over the next six months:

53% of CHROs expect engagement levels to increase — up significantly from 43% in Q4 2025.
21% expect engagement levels to decrease — down from 24% in Q4 2025.

When asked if they expect employees to stay in the next six months:

34% of CHROs expect their employee retention to increase, up modestly from 31% in Q4 2025.
19% expect employee retention to decrease over the next six months — down from 22% in Q4 2025.

“Hiring momentum is back, but retention is where the real work begins,” said Diana Scott, a U.S. human capital center leader at The Conference Board. “CHROs should treat this moment as an opportunity to redesign the employee experience, investing in leadership quality, skills development and more personalized employee engagement.”

Starbucks Will Switch to Weekly Pay for Hourly Workers

Beginning in August, Starbucks will start paying its hourly, U.S.-based employees — which the coffee chain calls its “partners”— on a weekly basis.

The move is part of its “Back to Starbucks” initiative, which includes:

The opportunity to earn a new quarterly Back to Starbucks Partner Reward worth up to $1,200 per year ($300 per quarter); and,
Expanded tipping options for customers.

According to a joint statement by the company’s chief partner officer Sara Kelly and chief operating officer Mike Grams, taken together, the new bonus and expanded tipping options have the potential to increase what eligible partners receive by approximately 5% to 8% on average, on top of what they receive today.

How AI is Shaping Early Career Expectations

Eighty-nine percent of new college graduates are concerned that artificial intelligence (AI) or automation could replace entry-level roles, up from 64% in 2025. That is according to a 2026 Graduate AI Readiness Report by employment website Monster.com.

Many graduates are already using AI in a range of career-related tasks, including:

Job searching (39%)
Resume writing or cover letters (35%)
Interview preparation (31%)
Applying to jobs (27%)
Company research (26%)
Professional skills development (20%)

Other key findings from the report:

69% of respondents believe knowing how to use AI will give them an advantage over other job candidates.
58% said they feel anxious about using AI tools in future roles.
36% felt college is preparing them to use AI in the workplace (40% said it isn’t; 24% are unsure).
32% said they have not used AI during their job search or application process.

Figures and Facts of the Week

90: The percentage of U.S. companies who said they missed their hiring goals in 2025, according to data in a 2026 Hiring Insights Report by AI-recruiting platform GoodTime.
88: The percentage of global organizations who agree AI will create new opportunities and require new skills, according to a 2026 Human Capital Trends Study by risk management and HR consulting firm Aon.
81: The percentage of U.S. hiring managers who now consider AI-related skills a hiring priority, according to a 2026 Job Search Statistics Report by career website Resume Genius.
76: The percentage of U.S. employers who said managing pharmacy cost is either important or very important in the next 12 months, according to a 2026 National Benefits Strategy Survey by the consulting firm Marsh McLennan Agency. The report suggests the increasing use of glucagon-like peptide-1 (GLP-1) drugs to manage metabolic conditions has intensified pressure on healthcare costs.
72: The percentage of American workers who said they’re not where they expected to be professionally, according to a new survey from career website MyPerfectResume. At the same time, 75% of survey respondents said they’re not ahead of others in their age group.
44: The percentage of U.S. employers planning to introduce virtual primary care within the next year, according to a 2026 Employer Health and Benefits Strategy Survey by insurance and risk management company Brown & Brown.
36: The percentage of experienced American workers who believe new job seekers should be prepared to demonstrate knowledge of AI tools when applying to roles, according to a survey by talent solutions and business consulting firm Robert Half.

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