Stronger Together: Why Culture Matters in Today’s Workforce Environment

Stronger Together: Why Culture Matters in Today’s Workforce Environment

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.

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:?

  • Objectives and expectations were clearly communicated from the highest levels down to the lowest.
  • A culture of accountability was firmly established.
  • Employees were able to pitch ideas freely and comfortably to their managers and the rest of the C-suite
  • Workers felt they were part of one team working towards a goal.
  • Employees felt supported by the management.
  • Feedback was given in a prompt and clear manner.
  • Managers took ownership not only of positive results but also negative ones.

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.

Trending Topics

  • Dell’s eNPS score, a metric that measures how likely an employee will recommend the company as a great place to work, dropped from 62% to 48% in just a year. The cause? The tech giant’s return-to-office mandate , which includes tracking hybrid employee attendance through electronic badge swipes and VPN monitoring.
  • Amazon has told various teams that the number of hours they spend in the office will be monitored, with expectations varying from two to six hours per employee visit. This comes as a response to the practice of “coffee badging”—the act of visiting the office, scanning the badge, and only staying long enough for a hot beverage.
  • According to LinkedIn’s latest workforce report , hirings in the U.S. across multiple industries slowed by 2.2% from May to June 2024.
  • It’s been found that an increasing number of remote workers are “quiet vacationing”—the act of taking mini-vacations while on the clock. Additionally, recent data from The Harris Poll indicates that this practice is trending across all worker age groups.
  • According to a Forbes contributor, employers can reduce the instance of “quiet vacationing" if they make changes to their paid time off (PTO) culture. These changes include managing business cycles, establishing a backup system to be used during peak seasons, and encouraging employees to use their PTOs through changes in PTO policy.

?Sources

Humberto Sousa, PMP

Program Management and Service Delivery | SAFe Agilist | Business-IT Alignment Expert | Global Cross-Functional Team Leadership

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.

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