Karen Ferris

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Future of Work Redesigned - Culture

Let’s assume that all the researchers, analysts, commentators, and experts in their field are wrong. You can insist that everyone returns to the office, and it will all be just like it was before March 2020.

Or you can stop putting your head in the sand and listen to the data. These are global numbers.

Follow the data

Microsoft (March 2021) 41% of the global workforce is considering leaving their current employer.

EY (May 2021) 54% of employees globally will quit their jobs if not provided post-pandemic flexibility,

Gartner (June 2021) 39% of employees are likely to leave if you insist on a “hard return.” 55% of employees say their ability to work flexibly will impact whether they stay with their employer. Only 4% say they would prefer to go work on-site full time.

Gallup (July 2021) Only 20% of employees globally are engaged.

McKinsey (September 2021) 40% of employees are at least somewhat likely to quit in the next three to six months. 36% who quit in the last six months did to without a job in hand.

Workvivo (January 2022) 60% of employees plan to leave their jobs this year.

The choice is yours.

What if I was to tell you that you can move from the old ways of working and create a High Performing Hybrid™ workforce if you are prepared to rethink how we work, when we work, and where we work?

I believe there are six compass points to follow that will secure your future and enable you to attract and retain the talent you need to succeed.

Before we look at this let’s look at some other numbers

The cost of not doing it

According to Majer recruitment the cost of hiring in Australia / New Zealand is:

New executive                     $34,440

Senior-level management    $23,059

Mid-level hire                        $17,841

Entry-level positions              $9,772

That's an average cost of $21,000 and if the analysts are right and you could lose around 50% of your workforce if you fail to respond to the causes of The Great Resignation, it will cost you $1,050,000 AUD to replace every 50 employees who leave. That’s if you can find a replacement of course!

According to Gallup, the cost of replacing an employee in the US can range from one-half to two times the employee’s salary. So, a 100-person organization that provides an average salary of $50,000 could have turnover and replacement costs of approximately $660,000 to $2.6 million per year.

It is also going to cost you time. According to Majer it takes an average of 82 days to fill a vacant position. Can you afford this time in which team productivity drops along with company revenue?

The cost of replacing your lost talent can range vastly, but one thing is for sure, it will cost you both time and money.

You can also not underestimate your Employee Value Proposition (EVP). You will only attract and retain talent if you are an employer of choice. Employees are in the driving seat with a smorgasbord of employers to choose from. There are more vacant positions than potential employees to fill them.

The future of work redesigned compass

There are six points on my Future of Work Redesigned compass. These are the six directions in which you must head if you are going to redesign the future of work in your organisation.

Future of Work Redesigned Compass


Culture – improve the culture in the organisation so the benefits of hybrid working can be realised

Strategy – co-create a hybrid working strategy

Leadership – leadership requires an uplift in skills and competencies to lead high performing hybrid teams

Technology – optimise hybrid working now and into the future by using the best technologies available to you

Empowerment – employees need empowerment and autonomy over where, when, and how they work and there must be trust

Wellbeing – provide every employee with a holistic and contextual platform for mental wellbeing and increased resilience

In this and future newsletters, I will be exploring each of the points on the compass. This week we start with the part culture must play in the future of work.

Culture

Without a good culture in the organisation, the benefits of hybrid working will not be realised. Culture is critical to company success and has direct impact on effectiveness, revenue growth, talent retention and attraction.

The challenge

Many leaders are stating that everyone will have to return to the office to preserve the company culture. The first reality is that over the last 2 years there has been too much change, for both the employee and employer, for the same culture to exist as it did pre-pandemic. The second reality is that if there is an edict to get everyone back to the office on a full-time basis, the culture will be irrelevant as employees will leave to go to an employer who provides the flexibility they have become used to and wish to retain. The third reality is that bricks and mortar do not make a culture. It is the people within the building with their shared, values, and beliefs that form the culture.

I accept that moving away from everyone being in the office can have an impact on culture if it was not a great culture in the first place. There can be adverse impact on communication, connectivity, and collaboration. Research on over 61,000 Microsoft employees showed that company-wide remote work caused the collaboration network of workers to become more static and siloed, with fewer bridges between disparate parts. Furthermore, company-wide remote work caused separate groups to become more intra-connected by adding more connections within themselves. In a nutshell intra-team working and collaboration increased whilst inter-team working, and collaboration decreased. This is a situation that can be rectified.

If you had a great culture pre-pandemic and worked to maintain it during the pandemic, you are in a good position to have a great culture moving forward as you embrace the hybrid workplace. You will have recognised that work is what we do, not where we go.

The future of work is hybrid. Period. This is an operating model that has employees working from an office and remotely that makes business sense. There are many variations of the model and no one-size-fits-all approach. Every organisation will have to determine, in conjunction with their employees, the model that works best for the organisation and the employee.

This will also mean a reconstruction of the company culture. The culture must embrace employees working in many different locations. Whilst this could be one of the biggest opportunities afforded to leaders to reconstruct the company culture but could also be one of the biggest challenges.

The response

This is the time for leaders to assess their culture and determine where the reconstruction is needed. The best place to start is to talk to your employees and really listen to what they have to say. Observe the behaviours taking place and assess whether they are behaviours you would like to reinforce or eradicate.

Culture has many moving and interrelated parts. Its’ complex. But it cannot be ignored. If was embarking on this assessment, and subsequent culture reconstruction, these are the things I would be looking for.

Purpose and accountability

Employees have a shared sense of purpose regardless of their location. All teams have a common goal, a single North Star giving them a clear reference point and keeping everyone moving in the right direction.

Employees are held accountable for results. Accountability says, “your work matters, it is important to our organisation and your team.” Accountability is how employees contribute to the achievement of the common goal.

Communication and clarity

Everyone has been enabled communication effectively and have good listening abilities. Miscommunication can destroy a culture like an out-of-control wildfire.

Communication must be open and transparent. Those working remotely cannot be at a disadvantage when it comes to knowing what is going on. Leaders keep everyone informed about as much as possible – the good, the bad, and the ugly. Leaders ensure that when they have nothing to say, they say they have nothing to say.

Leaders lead with clarity. They set clear expectations and ensure there is understanding. There is no place for ambiguity. Leaders are fully aware of the danger that lack of clarity can bring about. As Brené Brown said, “clear is kind, unclear is unkind.”

Inclusivity and equity

Inclusivity and equity exist to provide a sense of belonging for all employees. No-one, regardless of location, feels they are not included. Everyone is treated equally, and they know they are on a level-playing field with everyone else. There is no case of “out-of-sight” means “out of mind.” In meetings, everyone has a voice that is heard. Performance measurement is not subject to proximity bias where the performance of someone in close proximity is more highly valued than someone who is remote. Remote working has no impact on career progression. There is no “us” and “them.”

Visible, available, and accessible

Leaders are visible, available, and accessible. Everyone knows there is a captain steering the ship. Leaders are available for support and advice. Leaders are accessible through an environment of psychological safety so employees know they can speak up, ask questions and challenge without fear of negative repercussion or reprisal.

Connectivity and collaboration

There is connectivity and active collaboration not only with teams but across teams and across functional areas. Connectivity and intentional collaboration are core values. Leaders know that they cannot bring old habits into a new way of working. They understand that collaboration can happen both synchronously – as it used to – and asynchronously in the hybrid team. There is investment in collaboration tools and platforms to support effective asynchronous collaboration.

Leaders encourage collaboration not only within the team but across functional areas to increase knowledge sharing.

Adaptability and flexibility

Every understands that this is a journey and one of uncharted territory. It is a learning journey for everyone – employers and employees alike. There are setbacks and bumps in the road, but everyone traverses them together. Setbacks are embraced as learning opportunities. Everyone can adapt and is prepared to be flexible as plans and directions change.

Empathy

Leaders are empathetic leaders, and they truly understand an employee’s situation, concerns, and challenges and are ready to help. The understanding of an employee’s situation results in compassion and action. Leaders understand that every employee’s experience and situation is different. They show sincere interest in the need, hopes, and aspirations of others. They demonstrate a willing ness to help all employees in the best way they can. The importance of empathy in the workplace is recognised and therefore leaders and employees are given time and support to develop their empathy skills through coaching, training or developmental opportunities and initiatives.

Wellbeing

Employee wellbeing is the priority. Leaders are cognisant of the impact the pandemic has had, and will continue to have, on their employees and their mental wellbeing. The organisation has a platform for mental being in the workplace that is holistic (meets everyone’s needs) and is contextual (can help with the situation an employee finds themselves).

Leaders know the signs to look for that could indicate an employee is struggling and they know the action to take.

Summary

A great hybrid culture will take time to build but you will reap the benefits. Assess where the biggest impact can be made on the culture and start there. Get everyone on board with the intent and supportive of the approach.

Next week, we will look at the Strategy point on the compass.