How organizational culture, mental health & hybrid work is changing the future of work.

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The future of work is changing at an accelerated rate due to the pandemic. Organizations face unprecedented opportunities and challenges around remote work, inter-company relationships, employee well-being, and innovation. Managing workplace culture, providing mental health resources, and inspiring employees toward their best work will be pivotal in a post-pandemic economy.

Several very important studies have just been released. They help us to understand the implications of the pandemic on organizations and their employees, and give us a sneak peek into the future of work.

The future of work & organizational culture

A major study entitled, the Global Culture Report published by O.C. Tanner was released in September 2021. Focussing on organizational culture, the report analyzes the changes in workplace culture and management practices. 1

The future of work continues to evolve. While both organizations and workers have experienced challenges, new opportunities to strengthen workplace culture are arising. This study chronicles six essential elements that define thriving cultures. 2

6 Elements of a thriving workplace culture

1. Employee sense of purpose.

Purpose speaks to an organization's mission and vision, its reason for being. It defines why the company exists and the change it wishes to bring about in the world. In order for workers to have a positive employee experience, they must feel connected to the organization's purpose and understand how their role meaningfully contributes toward that purpose. 

2. Employee sense of opportunity.

This measurement refers to an employee's opportunities for advancement, skills development, contribution to meaningful work, and belief that their voice is recognized as important. Furthermore, it refers to empowering an employee’s autonomy, decision-making, and professional associations.

3. Employee sense of success.

This metric indicates an employee's sense of accomplishment and collaboration. The exhilaration people experience when overcoming obstacles, celebrating wins, and being a part of a flourishing team all contribute toward a sense of accomplishment. Furthermore, connecting work with meaning, connection, and fulfillment promotes resiliency while decreasing stress and anxiety.

4. Employee sense of appreciation.

Recognition involves both public acknowledgement and internal satisfaction. Employees want to be recognized and appreciated by their leaders and peers. It builds a person's self-worth, self-confidence, and desire to generate excellent work. According to the research, "appreciation is most effective when it's delivered in timely, personal, and meaningful ways." 3 Additionally, appreciation often contributes toward an employee’s sense of purpose, success, and well-being.

5. Employee sense of well-being.

Well-being encapsulates a person's physical and mental health, as well as their financial, social and emotional wellness. People tend to function at their best when they feel strong and capable. Critically, this measure includes the ability for employees to present their authentic selves in a safe environment that promotes diversity, equity, and inclusion. Work-life balance for stress management and burnout prevention are indicated within this metric.

6. Employee sense of leadership.

An organization's success relies upon a healthy, happy workforce. Companies benefit when they provide employees with coaching and mentoring to help them grow to their highest potential. Inspiring employees to take risks, innovate, and break through barriers ultimately leads to greater passion and success. 

Leaders who consistently sharpen their skills, empower their teams, and are willing to learn will inspire leadership among their team members. Additional qualities that define good leaders are empathy, emotional intelligence, and uncompromising cheerleadership.

How workplace culture statistics are changing

The following image shows the year-over-year change in the six areas. 4

Hybrid work combines office & remote workplaces for greater efficiency

While the pandemic has helped organizations to adapt to new ways of working, new data reveals where work happens is an equally important piece of the puzzle. The best results are achieved when work is completed in tailored, conducive spaces.

According to the research, remote work may be more conducive to thinking creatively and meeting deadlines. On the flip side, career advancement, making personal connections with colleagues, and ensuring all team members have a voice in decision-making seem to be better suited to the office.

A key takeaway evidenced from the research is that "great work requires connection and flexibility. A hybrid workplace provides both when employees can do their work in the best space suited for it." 5

A hybrid work model is not without its challenges. For instance, how do companies create fair and equitable opportunities for all employees? A report by Statistics Canada shows that from March 2020 to February 2021, women accounted for 53.7 percent of year-over-year employment losses. Much of this has to do with caregiving and online classroom learning. How organizations respond to this challenge will help to define their culture and impartial advancement opportunities. 6

Mental Health Statistics

LifeWorks published its Mental Health Index in August 2021. The study reveals the current mental health status of employed adults amid the pandemic benchmarked against 2017-2019 data. Following are a few of their most pivotal findings. 7

1. Connection and belonging 

One-third of Canadians do not feel a sense of belonging or acceptance at work or are unsure. This is up from one in four before the pandemic, meaning fewer people feel connected post-pandemic than pre-pandemic. Mental health scores for those who do not feel a sense of belonging and acceptance at work align significantly below the national average and distinctly below those who feel belonging and acceptance at work. 

Those who feel a sense of belonging and acceptance at work have among the highest mental health scores and the best isolation scores, both significantly better than national averages. Further, this group has higher productivity (87%) than those who do not feel a sense of belonging and acceptance at work (74%).

2. Workplace wellness and well-being

More than half of Canadians continue working at their job when feeling unwell at least one day per week. 

Here are a few specifics: 8

• Those who work when feeling unwell physically or psychologically have significantly lower isolation scores than the national average.

• 64% of parents work when feeling unwell at least one day per week compared to 36% of non-parents.

• 46% of people who never work when feeling unwell have a mental health score nearly four points above the pre-2020 benchmark.

Many employees report experiencing exhaustion, compassion fatigue, anxiety and stress. Proactive companies are developing new ways to support staff and prevent employee burnout. Those who will reap the long-term benefits of employee retention, well-being, and productivity.

3. How employees feel about their organization reflects in their mental health

• Employees who feel their organization is a great place to work are linked to better mental health.

• 65% of Canadians who consider their organization a great place to work have among the most favourable mental health scores.

4. Mental health scores are strongly associated with productivity

Lower mental health scores correspond to lower productivity. Higher mental health scores correspond to higher productivity, a difference of 41 workdays per year. 

Among this group, the average amount of energy put into work each day while feeling unwell is 74 percent, 11 percent less than when they feel well. Lower mental health scores reflect stress, exhaustion, and decreased efficacy, which can lead to lowered self-esteem.

Primary challenges & findings around the future of work

1. Adapting to a hybrid model of work.

Hybrid work models provide better employee experiences than solely remote or exclusively onsite work. 9

When workers are granted hybrid workplace flexibility in where and when they work, the following cultural outcomes improve: 10

• Engagement improves by 41%.

• Retention improves by 77%

• A positive view of the company improves by 41%

A research study entitled The effects of remote work on collaboration among information workers, published in September 2021, analyzed data on 61,000 Microsoft employees. It reveals that while working hours rose for remote workers during the pandemic, real-time communications decreased. Perhaps the greatest finding the study revealed is that while remote work is excellent for many work scenarios, innovation and collaboration may suffer. 11 Thus, exploring a hybrid work model will be imperative for organizations focused on innovation and collaboration.

2. Creating new, meaningful employee experiences.

Employee experience, and what makes it successful have changed throughout the pandemic. Companies must be willing to innovate to make work meaningful and purposeful so that employees can perform at their best. Ownership, connection, and achievement inspire excellence. 12

The data show that "when employees feel a strong sense of ownership in their work, a connection to others, and a sense of achievement and expertise in their role, they’re far more likely to do their best work." 

Employers that satisfy three crucial psychological needs: autonomy, connection, and mastery increase the following outcomes:

• Employee experience,

• Great work,

• Thriving culture,

• Employee net promotor score (how employees feel about the organization.)

3. Improving employee interaction, recognition, and development.

Recognition impacts the strength of connection between employees. 13 Leadership will do well to recognize talent and contribution publicly and eloquently to make employees feel valued, heard, and respected.

Recognition needs to be both personal and natural. Research shows that when employers recognize an employee's extra effort, they tend to feel more strongly connected. Not only that, they produce better work. Meanwhile, a lack of connection threatens to erode workplace culture. Leaders must work to connect with individuals, connect individuals within their team, and connect the teams to the overall organization. 14

4. Keeping people connected in changing times.

Analysis shows person-to-person communication contributes toward meaningful interactions. While technologies have been and will continue to be essential tools, according to developing research, the myriad technologies we've come to rely upon are contributing toward burnout. 15

Companies need fresh ideas for communications, interactions, and acknowledgment. It is worth the effort. The research shows there is a 12% increased odds an organization will thrive when employees feel connected. 16

Further, cited from a large study published in Nature Human Behaviour, "Our results show that the shift to firm-wide remote work caused business groups within Microsoft to become less interconnected." 17

5. Focusing on what impacts business outcomes.

According to the research, employee engagement may not be the most effective metric to predict individual or organizational performance. 18

On the flip-side, the following pre-pandemic studies counter-balance challenge the findings. More research is needed to determine how post-pandemic employee engagement affects turnover and productivity.

• Highly engaged employees outperform their unengaged peers. Organizations with high employee engagement are 21% more profitable. 20

• Highly engaged businesses experience a 41% reduction in absenteeism and a 17% increase in productivity. 21

Providing tools for work-life balance and stress management will contribute toward preventing burnout and a better bottom line. Developing new methods for empowering employees toward wellness, mental health, and effectiveness will lead toward greater productivity and ultimately the success of both employees and the organization.

6. Providing flexibility for healthy work-life balance.

Lack of separation between work and home was a major contributor to burnout during the pandemic. Meetings scheduled at odd hours, notifications coming round the clock, and unclear expectations all contributed to exhaustion. 

Research shows that when employees struggle to separate the work from their home life, the following outcomes are to be expected: 19

• 33% decrease in engagement

• 12% probability of taking days off to avoid work

• 11% employee self-assessment of burnout.

Manager training to recognize the signs and symptoms of burnout, and access to effective resources will be imperative for nurturing a thriving workforce.

We have much to learn as the world continues to evolve, as will our responses.

Learn how we can support your organization.

About the author

Bonita Eby is a Burnout Prevention & Organizational Culture Consultant, Executive Coach, and owner of Breakthrough Personal & Professional Development Inc., specializing in burnout prevention and wellness for organizations and individuals. Bonita is on a mission to end burnout. Get your free Burnout Assessment today.

References

1.  Chau, Christina, and Reid Thorpe. Publication. Rethink: 2022 Global Culture Report. Salt Lake City, Utah: O.C. Tanner Institute, 2021. https://www.fm-house.com/wp-content/uploads/2022/03/Rethink-2022-Global-Culture-Report.pdf

2.  Chau, Christina, and Reid Thorpe. Publication. Rethink: 2022 Global Culture Report. Salt Lake City, Utah: O.C. Tanner Institute, 2021. pp 13. https://www.fm-house.com/wp-content/uploads/2022/03/Rethink-2022-Global-Culture-Report.pdf

3.  Chau, Christina, and Reid Thorpe. Publication. Rethink: 2022 Global Culture Report. Salt Lake City, Utah: O.C. Tanner Institute, 2021. pp 13. https://www.fm-house.com/wp-content/uploads/2022/03/Rethink-2022-Global-Culture-Report.pdf

4.  Chau, Christina, and Reid Thorpe. Publication. Rethink: 2022 Global Culture Report. Salt Lake City, Utah: O.C. Tanner Institute, 2021. Pp. 11. https://www.fm-house.com/wp-content/uploads/2022/03/Rethink-2022-Global-Culture-Report.pdf

5. Chau, Christina, and Reid Thorpe. Publication. Rethink: 2022 Global Culture Report. Salt Lake City, Utah: O.C. Tanner Institute, 2021.  https://www.fm-house.com/wp-content/uploads/2022/03/Rethink-2022-Global-Culture-Report.pdf

6. Government of Canada, Statistics Canada. (2021, May 26). Gender differences in employment one year into the COVID-19 pandemic: An analysis by industrial sector and firm size. https://www150.statcan.gc.ca/n1/pub/36-28-0001/2021005/article/00005-eng.htm

7.  “Mental Health Index.” LifeWorks. LifeWorks, August 2021. https://9258156.fs1.hubspotusercontent-na1.net/hubfs/9258156/MHI%202021/Canada_MHI_August2021_English_Final.pdf

8.  “Mental Health Index.” LifeWorks. LifeWorks, August 2021. https://9258156.fs1.hubspotusercontent-na1.net/hubfs/9258156/MHI%202021/Canada_MHI_August2021_English_Final.pdf

9. Chau, Christina, and Reid Thorpe. Publication. Rethink: 2022 Global Culture Report. Salt Lake City, Utah: O.C. Tanner Institute, 2021. Pp 11, i. https://www.fm-house.com/wp-content/uploads/2022/03/Rethink-2022-Global-Culture-Report.pdf

10.  Chau, Christina, and Reid Thorpe. Publication. Rethink: 2022 Global Culture Report. Salt Lake City, Utah: O.C. Tanner Institute, 2021. Pp 15, 23. https://www.fm-house.com/wp-content/uploads/2022/03/Rethink-2022-Global-Culture-Report.pdf

11.  Yang, L., Holtz, D., Jaffe, S., Suri, S., Sinha, S., Weston, J., Joyce, C., Shah, N., Sherman, K., Hecht, B., & Teevan, J. (2021). The effects of remote work on collaboration among information workers. Nature Human Behaviour, 6(1), 43–54. https://doi.org/10.1038/s41562-021-01196-4

12.  Chau, Christina, and Reid Thorpe. Publication. Rethink: 2022 Global Culture Report. Salt Lake City, Utah: O.C. Tanner Institute, 2021. Pp 11. https://www.fm-house.com/wp-content/uploads/2022/03/Rethink-2022-Global-Culture-Report.pdf

13.  Chau, Christina, and Reid Thorpe. Publication. Rethink: 2022 Global Culture Report. Salt Lake City, Utah: O.C. Tanner Institute, 2021. Pp 11. https://www.fm-house.com/wp-content/uploads/2022/03/Rethink-2022-Global-Culture-Report.pdf

14.  Chau, Christina, and Reid Thorpe. Publication. Rethink: 2022 Global Culture Report. Salt Lake City, Utah: O.C. Tanner Institute, 2021. Pp. i. https://www.fm-house.com/wp-content/uploads/2022/03/Rethink-2022-Global-Culture-Report.pdf

15.  Chau, Christina, and Reid Thorpe. Publication. Rethink: 2022 Global Culture Report. Salt Lake City, Utah: O.C. Tanner Institute, 2021. Pp 11. https://www.fm-house.com/wp-content/uploads/2022/03/Rethink-2022-Global-Culture-Report.pdf

16.  Chau, Christina, and Reid Thorpe. Publication. Rethink: 2022 Global Culture Report. Salt Lake City, Utah: O.C. Tanner Institute, 2021. Pp 117. https://www.fm-house.com/wp-content/uploads/2022/03/Rethink-2022-Global-Culture-Report.pdf

17.  Yang, L., Holtz, D., Jaffe, S., Suri, S., Sinha, S., Weston, J., Joyce, C., Shah, N., Sherman, K., Hecht, B., & Teevan, J. (2021). The effects of remote work on collaboration among information workers. Nature Human Behaviour, 6(1), 43–54. https://doi.org/10.1038/s41562-021-01196-4

18.  Chau, Christina, and Reid Thorpe. Publication. Rethink: 2022 Global Culture Report. Salt Lake City, Utah: O.C. Tanner Institute, 2021. Pp 11, i. https://www.fm-house.com/wp-content/uploads/2022/03/Rethink-2022-Global-Culture-Report.pdf

19.  Chau, Christina, and Reid Thorpe. Publication. Rethink: 2022 Global Culture Report. Salt Lake City, Utah: O.C. Tanner Institute, 2021. Pp 25. https://www.fm-house.com/wp-content/uploads/2022/03/Rethink-2022-Global-Culture-Report.pdf

20. Harter, B. J. (2024, May 16). Employee engagement on the rise in the U.S. Gallup.com. https://news.gallup.com/poll/241649/employee-engagement-rise.aspx.

21. Harter, B. J. (2022, August 13). Employee Engagement vs. Employee Satisfaction and Organizational Culture. Gallup.com. https://www.gallup.com/workplace/236366/right-culture-not-employee-satisfaction.aspx.