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Zoho Survey: US Businesses Lag in Digital Workplace Transformation Maturity, Security Gaps Pose Growing Risk

Zoho Corporation announced the findings of its "Trends in Digital Workplace Transformation" study, which surveyed 4,900 employees globally to assess their businesses' digital workplace transformation (DX) maturity.

The Zoho Workplace team developed a comprehensive digital workplace transformation maturity model. The survey methodology measured two key areas: workplace indicators (digital tools and processes) and employee performance indicators (productivity, collaboration, and security preparedness).

The study reveals that US businesses are falling behind globally, with security weaknesses and slow tool adoption hindering progress. The report, based on 5,000 employees across industries and company sizes, finds that 39% of US organizations are stuck at an early transformation stage, while top-performing global counterparts move ahead.

"Particularly concerning among the several hundred data points analyzed in this survey is the extent to which US businesses lag behind their global counterparts in the maturity scores. US businesses have strong foundations in collaboration and digital tools, but security and process inefficiencies are major barriers to transformation," said Raju Vegesna, Zoho's Chief Evangelist."Companies that fail to address these gaps risk not only data breaches but also lower employee satisfaction and productivity."

Process Inefficiencies Bring Down US Digital Transformation Maturity

The study ranks US digital transformation maturity at 61%, just below the global average of 62.2%. Despite access to digital tools, limited integration, weak security protocols, and inefficient workflows are preventing companies from reaching higher digital workplace transformation maturity.

  • Manual task delegation: 85% of companies still rely on manual task delegation over automation.
  • Sector struggles: Hospitality (56%), logistics (53%), and retail (58%) fall behind tech (66%) and finance (62%).
  • Company size matters: Small and medium businesses (58%) lag behind larger firms (63.5%).
  • Unmet expectations: Only 15% of employees feel workplace tools fully meet expectations

Key Security Gaps Fuel Vulnerabilities

Many US businesses remain vulnerable due to weak security measures and lack of awareness, according to the study. While larger enterprises and tech firms have made strides in security adoption, small businesses, remote teams, and customer-facing roles continue to face high risks.

  • Only 50% of US businesses enforce multi-factor authentication (MFA), biometrics, or one-time passwords (OTPs) for system access.
  • Less than 25% of remote workers receive secure access policies, such as VPN encryption or device authentication.
  • 30% of organizations implement physical security controls (ID badges, restricted zones), leaving the majority exposed to insider threats.

Many employees remain untrained and unprepared for cyber threats, increasing the likelihood of breaches:

  • Fewer than 25% of employees have received cybersecurity awareness training.
  • Only 15% of employees have ever reported a security incident through official channels.
  • 20% take proactive measures against phishing or social engineering, such as verifying identities before sharing information.

A Path Forward: Integration, Automation & Security Overhauls  

With reference to Zoho's maturity model, to advance from Level 2 (Standardization) to Level 3 (Structured Operations), companies need to adopt integrated digital suites, automate workflows, and enforce stronger security measures. The study estimates:

  • Advancing from Level 2 to Level 3 takes 3-5 years and costs $250-500 per employee annually.
  • Reaching Level 4 (Optimized Digital Operations) requires 10+ years and $500-1000 per employee annually.

The full results of the "Trends in Digital Workplace Transformation" study are available for download here.

Published Thursday, February 27, 2025 10:13 AM by David Marshall
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