A new global study by UKG, a leading AI-powered HR, pay, and workforce management platform, shows that flexibility and financial wellness are now the top priorities for frontline workers as they head into 2026. The research, which surveyed more than 8,200 frontline employees across 10 countries and multiple industries, highlights a shift in what motivates and retains this critical segment of the workforce — from schedule autonomy to pay stability and career opportunity.
Frontline workers, also known as essential workers, comprise 80% of the global workforce, as these workers have to be present in their respective industries, namely in retail, health, hospitality, logistics, manufacturing, public services, and contract workers in field services. Although there is an advancement towards work-from-home flexibility for knowledge workers, it was revealed that frontline workers view the state of the employee experience as inadequate for their needs, resulting in burnout.
Key Findings: What Frontline Workers Value Most
The survey has highlighted a number of important considerations, which determine whether employees will stay with, or leave, their employer:
Financial Hardship and Salary Worries: Poor salary packages have always been the major motivation for employee turnover, with more workers reporting that their remuneration does not meet their cost of living.
Work Schedule Flexibility
After compensation, the second most often-mentioned factor in retention is work schedule flexibility. Fifty percent of respondents reported that it is difficult for them to adjust their schedules on short notice, and many feel schedules as they are make it difficult for them to maintain a healthy lifestyle and work life balance.
Career Development and Recognition: A sense of stagnation in career progress and the absence of recognition and rewards are the next reasons.
Upskilling & Skill Development: One in every five respondents to the survey believes there is a lack of opportunites for learning new skills, especially in a world where the needs are being transformed with the advent of automation and AI.
What This Means for the HR Industry
1. Reworking HR Core Concerns Beyond Salary
Classic approaches to managing the workforce would generally involve compensation, benefits, and compliance. What the UKG study makes evident, though, is that for many workers, considerations such as flexibility and independence are as important, or even more important, than compensation. A new era in HR strategy would involve structuring not just around market or base compensation levels, but also around flexibility and independence.
HR can start using dynamic scheduling software. This tool helps schedule and manage employee shifts and personal commitments better. When employees control their schedules, they feel more engaged. This lowers burnout and boosts productivity and retention.
2. Financial Wellness Becomes an HR Imperative
Fewer employees report living paycheck to paycheck than in the past, but financial stress for frontline workers is still high. So, HR teams should strongly support financial wellness programs. These should include on-demand pay, budgeting tools, retirement planning, and financial education. Such programs help both individuals and organizations. They improve employee well-being and boost loyalty, reducing turnover.
Demand for financial support matches broader workforce trends. Financial wellbeing boosts productivity and retention; it’s not just a nice-to-have. As financial wellness becomes a priority, companies must integrate these programs into their total rewards frameworks.
3. Closing the Frontline Experience Gap
The research also points to a perception gap within organizations: almost half of frontline employees think their corporate culture is different from the one office workers have. For HR leaders, this shows the need to craft inclusive policies that would guarantee equal development, recognition, and supportive workplace technologies for frontline workers.
Such disparities can be addressed by the HR team through the extension of AI-assisted workforce management tools that drive better visibility, smoother communication, and personalized experiences for frontline roles.
Also Read: New Kahoot! report uncovers the reality for Gen Z workers new to the workplace
Broader Effects on Businesses
Improving Employer Competitiveness
The companies that can effectively address flexibility as well as financial well-being will be more attractive when it comes to competing for the top workers, especially for industries that experience a lot of turnover, like medical, hospitality, and retail. Employees who appreciate their workers will be less likely to quit for another job.
Operational Efficiency & Customer Experience
Increased flexibility in the scheduling and optimization of shifts can also enhance efficiency. For instance, by using artificial intelligence-based scheduling systems, there can be optimal allocation based on workforce availability and peak times, leading to more effective engagement or servicing by employees.
Catering to Evolving Workforce Expectations
With the evolving state of the overall labor market, it is important for business executives to understand that the demands of frontline employees reflect what is occurring across other generations: a quest for a work-life balance, a health/wellness program, and a commitment to meaningful engagement in the work itself.
Conclusion
The UKG global study paints a clear picture: flexibility and financial wellness are now top priorities for frontline workers worldwide, and employers that recognise and act on these priorities stand to gain a more engaged, stable, and productive workforce. For HR leaders, this means rethinking traditional retention strategies, embedding comprehensive well-being programs, and deploying technology that empowers employees — particularly those on the front lines of business operations.
As flexibility and financial security become central to frontline workers’ job satisfaction and retention, organisations that align their HR strategies accordingly will be better positioned to thrive in the evolving workplace of 2026.
