Stronger Together: Why Culture Matters in Today’s Workforce Environment
MBO Partners
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Today’s issue was guest-authored by MBO Partners’ Vice President of Enterprise Solutions, Jenna Kinter
A Disengaged Workforce
In 2023, data from Gallup indicated that U.S. employees were becoming increasingly detached from their employers and respective workplaces. This drop in engagement was especially pronounced for younger workers and those who worked in hybrid and remote settings.
By the end of 2023, it was found that only 33% of employees were actively engaged in their work. Unfortunately, this downward trend continued into the first quarter of 2024 as now only 30% of workers—both full-time and part-time—were found to be actively engaged in their work.
Put simply, there are fewer Americans who felt enthusiastic about their work and workplace, and more importantly, this decline marked the lowest reported level of engagement since 2013.
This alarming trend not only highlights the growing disconnect between employees and their employers, but it also underscores the urgent need for businesses to re-evaluate their strategies for employee engagement.
I think part of the reason why employees are disengaged has to do with the changes in how work is getting done these days.
Nowadays, work can be done remotely, and as a result some workers do not have access to the in-person feedback and connection that employees had pre-pandemic.?
That is why I believe hybrid working setups are effective at addressing this issue. Workers benefit from the flexibility to work from home while also having opportunities to interact with their peers in an office setting.
That said, the issue surrounding work setups isn’t the only factor at play here.
Engagement doesn’t just start and end with compensation, as the latter isn’t the only determinant of employee retention.
Employees, whether full-time, part-time, or independent, want to know what’s expected of them, receive feedback about their work, and more importantly, feel connected to the business they’re working for.
Therefore, it is impossible to discuss engagement without discussing culture.
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The Importance of Culture
The word culture, when used in a corporate context, is often thought of as nothing more than a buzzword. However, I believe it truly does matter.
Enterprises with a great work culture enjoy relatively high levels of employee engagement, which leads to better business performance in times of prosperity and uncertainty.
Throughout my years working at MBO, I have had the opportunity to work with multiple clients and gain insight about how their culture works. The most successful ones had a great workplace culture, resulting in highly engaged employees.
Through fully-engaged workers, these clients were also able to attract and retain top talent, regardless of whether they were FTEs or independents.
Based on my observation, the following factors have contributed to high engagement rates among these clients:?
As you can see, culture is a powerful driver of employee engagement. Organizations who are lacking in this area will end up with a disengaged workforce.
By having a fully-engaged workforce, organizations can position themselves ahead of their peers allowing for them to be considered an employer of choice, ultimately resulting in higher retention and engagement rates.
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4 个月The collective sense of detachment from our employers is becoming increasingly palpable in discussions about careers, work-life balance, and the job market. Formal numbers now reflect this trend, corroborating what is evident from social media and casual conversations. This growing detachment is unsurprising. No one likes to think of themselves as mere numbers on a spreadsheet, but this is often the impression given by many employers, whether intentionally or not, especially in the wake of layoffs, in-office mandates, reduced benefits, demands for off-hours work, and unclear communication about goals or performance feedback. A strong culture is important, but it must be genuine. Claiming to build a strong culture or to value people, while continuing to prioritize financial results above all else, only exacerbates the sense of detachment. This can lead to phenomena like quiet quitting, where employees do the bare minimum to keep their jobs. There is no silver bullet solution or one-size-fits-all policy to resolve this issue. However, employers must assess the sense of purpose, autonomy, and growth they offer their employees, as these three components are key to ensuring higher levels of engagement in most cases.