At any given time, organisational culture is a diamond in the rough, requiring polishing. And like diamonds, there are many facets to it, and there are nuances to how to make them all shine bright. O.C. Tanner’s “2024 Global Culture Report” (which marks the report’s sixth edition) is essentially an effort to understand how organisations shine the various sides of this “diamond”, and what makes the effort challenging, and the rewards that result from getting it right. Through data gathered from more than 42,000 employees, leaders, HR practitioners and executives from 27 countries, it shines the light on the challenges to building a robust organisational culture.
The report spells out how organisational culture is impacted for the better when business leaders manage change, show empathy, practise flexibility, build skills and develop resilience. Employees who perceive their leaders as possessing the tools to help them manage change are 5x more likely to feel a sense of community, 6x more likely to thrive at work, 10x more likely to feel a strong sense of trust, and 76% less likely to experience burnout. When leaders have the tools to help employees manage change, their own risk of burnout decreases by 73%. Employee voice in organisational changes plays a vital role in strengthening the belief that the organisation is people-centric, trusts employees, and instils a sense of community. Employees also tend to stay longer at their organisation when their leader is empathetic.
However, the report reveals some disturbing realities. Only 27% of leaders feel strongly prepared to help their people navigate change. Additionally, only 59% of employees feel their leaders’ expressions of empathy are accompanied by meaningful action and support, and only 58% of organisations take action to improve after receiving employee feedback.
Flexibility is a massive building block of a positive workplace culture, particularly in the post-pandemic world. Employees want equitable flexibility, one that is inclusive and not discriminatory. The report lists five contributing factors to creating equitable flexibility — leadership support, organisational support, employee empowerment, work choice, and time management. Equitable flexibility increases the odds that employees would want to stay another year by 8x. Although people universally want flexibility for themselves, only 68% feel it should also be available to every employee regardless of role. However, only about half (57%) say their culture supports flexibility in every job. Dissatisfaction with the level of flexibility at work increases the odds of burnout by 5x.
Skill building is another crucial aspect of organizational culture. The report emphasizes that there are 5x greater odds of employee fulfillment when an organization supports skill building. However, many organizations mistakenly believe that employees who want to learn new skills are planning to leave for a job in a different field at a different organization. In reality, less than a quarter of workers (22%) state that they would like to build skills to leave for a job in a new field at a different organization.
Leadership resilience also plays a significant role in organizational culture. Employees who believe their leaders are nimbly resilient are 9x more likely to think they are also resilient. However, only 30% of employees believe their organization is resilient.
Overall, the report highlights the importance of leadership, empathy, flexibility, skill building, and resilience in building a strong organizational culture. It also reveals the current realities and the need for equitable flexibility in the post-pandemic world.
