Empowered Worker Agency: The Way Forward

Overview

A new Deloitte report co-authored by Karen Weisz , Managing Director - Technology, Media, Telecommunications, makes a compelling read. The report examines the state of workers' sentiment in response to considerable workplace disruption, massive layoffs, and spiraling toxic corporate culture. That sentiment boils down to one pervasive demand for worker self-directed agency. Accordingly, the report argues for a profound realignment of the worker-employer relationship. A new accord is needed that formally acknowledges the centrality of worker agency within organizational life and the key to sustainability.?

Trends

Three broad trends have tipped the scales in favor of workers for the foreseeable future and well into the early 2030s.

Toxic Corporate Culture

The causes of toxic cultures are well documented. Unfortunately, most workers suffer from poor leadership behaviors, feel disrespected and unrecognized, don't experience equity and inclusion, and don't see growth pathways.

Labor Market?Changes

Talent shortages are due to changing demographics, given the aging ‘Boomer' generation retiring. There is also widespread worldwide worker disengagement post-pandemic. People feel they have more choice and register dissatisfaction through ‘presentism’, ‘absenteeism', and 'quiet quitting'. This trend will become "a permanent market condition, persisting well into the late 2030s or beyond." Consequently, employers must be ever more competitive to retain and motivate workers.?

Social Consciousness

There is immense grassroots awareness and engagement concerning social, political, environmental, and economic causes geared toward supporting sustainability, equity, diversity, and inclusion. As a result, individuals now perceive a greater sense of obligation to voice their beliefs which they bring to work with them.

"Two in five Gen Zs and millennials have rejected a job or assignment because it did not align with their values around societal and environmental impact, and diverse and inclusive cultures. By contrast, organizations who have committed to their organizational purpose have observed improved benefits—50% of respondents … noted increased worker retention and well-being."

Worker Agency: The New Balance

The concept of worker agency has multiple dimensions centered around individual self-determination and the freedom to make meaningful choices over their work, "how, when, and where." Empowering agency is a "potent source of motivation" impacting workers' physical health and overall well-being. Moreover, it's good for the bottom line.

Models & Practice

Several proven models exist, such as worker councils and labor unions. These models involve aligning worker and employer values, goals, and aspirations through "shared decision-making" to engender "meaningful, mutually beneficial choices."?

In Germany, for example, worker agency is enfranchised by national law. "Employee works councils are required for all companies with more than five employees. These works councils have rights extending from day-to-day issues, such as holidays and payment methods, to economic aspects, such as an organization's investments, site closures, and potential takeover."

Organizations can begin empowering agency simply "by matching workers with tasks that align with their values, interests, and skills."

Co-creation Paradigm

A new rubric, "co-creation," is proposed; this envisions workers and employers adopting a "creator's mindset." Both stakeholder groups "actively contribute to shaping the organization's future," sharing the journey and outcomes through "continuous dialogue."

The Gap

The Deloitte Report highlights a perplexing paradox. Of the business leaders surveyed, 84% think enfranchising worker agency is essential. However, only 17% of respondents acknowledge they are ready or are already implementing. Problematically, the majority of organizations are on a gradient from 'willing but unready" to "not willing at all." "To truly harness agency and drive increased value, the focus needs to be on areas such as purpose, voice, and work, which were the lowest three selected in our survey (16%)."

Looking Forward

Astute leadership recognizes that people run the ship with AI, automation, robotics, etc., in support, not vice versa. They are already reaping the rewards of harnessing worker agency through authentic partnership. The vanguard sees increased worker well-being and other benefits. Together they are "1.8 times more likely to delight customers and 2.8 times more likely to innovate versus those that don't."

The convergence of toxic corporate culture, shifting talent markets, and heightened social consciousness has tipped the scales in favor of workers, A new balance in the relationship with employers is needed. Deloitte’s envisioned co-creation paradigm allows employers and workers to imagine the future they need and want for themselves, their children, and the planet.

References

Deloitte Insights. (2023, January 9). Harnessing worker agency. Sue Cantrell, Karen Weisz, Michael Griffiths, Kraig Eaton. Retrieved from: https://www2.deloitte.com/us/en/insights/focus/human-capital-trends/2023/fostering-employee-empowerment.html

John M. Bremen. (2023, January 30). Why Talent Shortages Persist: Moving Beyond The Great Resignation And Quiet Quitting. Retrieved from:?https://bit.ly/3q9snBR