ADP CEO Maria Black on Employee Engagement

At a recent gathering of influential women in California, ADP CEO Maria Black shared her insights on what drives employee engagement. According to Black, CEOs and senior leaders should start by assessing whether their employees trust them, as this is crucial for fostering a productive work environment.

Black's assertion that trust and engagement are closely linked was echoed during an interview with Fortune's executive editorial director Diane Brady at the Most Powerful Women Summit. She emphasized that when employees trust those around them at work, they become more engaged, with a 60% increase in productivity noted in ADP's research.

Black's comments underscore the importance of leadership in creating a work environment where employees feel valued and motivated. Her statement that "trust is a direct corollary to engagement" suggests that management plays a significant role in driving employee engagement and subsequent business outcomes.

ADP's findings challenge prevailing views on employee engagement, which often view it as an individual sentiment or attitude that can be measured but not influenced by leadership. In contrast, the company's data implies that trust in senior leaders is a critical factor in determining employee engagement levels.

According to ADP's research arm, every 1% drop in full engagement increases the likelihood of voluntary attrition by 45%. Meanwhile, only about 30% of employees are highly engaged at work, with those who trust their CEOs and senior leadership being more likely to be engaged.

The current atmosphere of mistrust is a significant challenge for businesses to overcome, according to Maria Black, CEO of ADP. With the constant stream of information and the blurring of lines between what's real and what's AI-generated, trust is being eroded on multiple fronts.

To build trust with employees, leaders must be willing to listen and engage directly with them, said Black. She emphasized that getting out into the field and holding listening posts is crucial in understanding the needs and concerns of staff at all levels. For instance, she recently visited California after a trip to Las Vegas where she met with 1,000 company leaders.

Black's approach to leadership emphasizes the importance of trust and being on the ground among employees. She believes that this is essential for building focus and engagement in the workplace. "The only way to keep current is to be on the ground and be trusted," she said.

As businesses navigate the changing landscape of work, another pressing issue is the need to upskill and reskill workers, according to Black. With AI increasingly playing a role in the workforce, companies must adapt to ensure that employees have the necessary skills to thrive. ADP's global reach, with over 1 million clients across 140 countries, gives it a unique perspective on this challenge.

The responsibility falls on employers to prepare their staff for the new AI era, said Black. However, she noted that workers often feel that their employer has not done enough to equip them with the necessary skills to work effectively alongside AI tools. "We know that, generally speaking, workers in today's workplace don't feel as though their employer has prepared them properly," she said.

As a seasoned leader within ADP, Maria Black has firsthand experience navigating the ever-evolving landscape of work and technology. Having joined the company in 1996 as a sales associate, she rose through the ranks to become president and CEO in 2023 - a milestone marking her as the seventh person to hold the top position in the company's history.

Black notes that AI has the potential to expand employees' expertise beyond their current domain, ultimately increasing their earning potential. However, she cautions that it is crucial for leaders to guide workers through this transition effectively; simply introducing new technologies is not enough.