On Culture: Reinventing Workplaces for Resilience and Growth

Myste Wylde
Aug 21, 2024
5 min read

Dear Culturati Insider,

Employee burnout is escalating. As evidenced by Glassdoor's latest findings — including an all-time reported high in July — unmitigated stress is significantly impacting workforce well-being and productivity. Systemic adjustments in organizational practices can help build resiliency, retention, and revenue. Additionally, performance management insights from a new McKinsey survey, co-authored by Culturati advisor Dr. Brooke Weddle, emphasize the importance of goal-setting, effectively managed review & feedback sessions, and rewards (financial and non) to maximize employee engagement.

And, with remote work enduring, addressing worker loneliness through ERGs and opportunities for casual, online conversations can help foster connection, benefiting the individual as well as the business. This type of strategic support in turn empowers teams, allowing for greater adaptability and collaboration, characteristics critical to the business reinventions required to stay competitive and sustain growth.

Finally, five years after the Business Roundtable CEOs pledged to prioritize a broader set of stakeholders, are we seeing a troubling retreat from these commitments? It appears many companies have shifted back to short-term, shareholder-centric objectives, though many ESG and DEI practices are now baked into operating plans. This HBR article highlights the need for leaders to continue engaging in bold, systemic changes that foster sustainable, regenerative businesses, ultimately delivering a net positive impact on society and the planet.

Let's change the world through the workplace, together.

Yours in commitment,

Myste Wylde

COO

Can You Fix Employee Burnout?

Inc.

By Sarah Lynch

Summary: Recent data from Glassdoor indicates a 44% increase in employee mentions of burnout since February 2020, reaching an all-time high in July, signaling the need for a strategic reevaluation of workplace practices. Burnout, as defined by the World Health Organization, stems from chronic workplace stress. Effective responses require comprehensive shifts in work design and culture. For instance, Look Left Marketing's strategy of reducing client loads by 20% has significantly improved retention and revenue, demonstrating that proactive, system-wide changes can effectively combat burnout and enhance organizational health. This approach demands continuous improvement and collaboration across all levels to sustain a resilient and productive workforce.

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What Employees Say Matters Most to Motivate Performance

McKinsey & Company

By Asmus Komm, Brooke Weddle, and Dana Maor

Summary: Amidst evolving workplace norms and economic pressures, a McKinsey survey of over 1,000 employees globally offers key insights into optimizing performance management. The survey reveals that employees are significantly motivated by clear, measurable goals linked directly to company priorities, with 72% citing goal-setting as a strong motivator. Performance reviews, when conducted by skilled managers who are involved in goal-setting, substantially enhance motivation, pointing to the importance of managerial competence over the format of the ratings themselves. Additionally, the survey underscores the value of ongoing development discussions, with 77% of employees engaged in regular feedback sessions reporting higher motivation. Nonfinancial incentives, alongside financial rewards, also play a crucial role in boosting employee motivation and perceived company performance. This comprehensive data suggests that a cohesive, well-articulated performance management system, consistently applied across goal setting, reviews, feedback, and rewards, is crucial for driving employee engagement and organizational success.

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Remote Workers Are Lonely, But Returning To The Office Isn't The Solution

Fast Company

By Rohshann Pilla

Summary: Recent surveys underscore a significant loneliness crisis among fully remote workers, with 1 in 4 feeling isolated. In response, employers can foster workplace connections without mandating a return to the office. Effective strategies include establishing Employee Resource Groups (ERGs), which 65% of participants find beneficial in building community, according to a 2021 McKinsey survey. These groups not only combat loneliness but also support mental health by offering safe spaces for open dialogue. Additionally, creating casual conversation opportunities through platforms like Slack or Microsoft Teams, and offering flexible connection options can help mitigate loneliness. Informal virtual coffee chats and local meet-ups encourage genuine interactions. With remote work likely to persist, it’s crucial for leaders to proactively cultivate an environment where employees feel connected and supported, enhancing both individual well-being and organizational health.

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The Three Traps That Stymie Reinvention

MIT Sloan Management Review

By Ryan Raffaelli

Summary: Effective leadership in the face of rapid technological and market changes demands mastering the art of reinvention, as illustrated by strategic decisions at companies like Apple and Corning. Leaders must adeptly navigate three critical areas: Organizational Identity, broadening the company's vision to foster adaptability; Organizational Architecture, structuring teams and resources to support both existing operations and innovative ventures; and Collaboration, ensuring diverse teams work synergistically across different areas of the business. Successfully managing these aspects enables leaders to seize transformative opportunities, turning potential disruptions into competitive advantages and setting the stage for sustained organizational growth.

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Stakeholder Capitalism Still Makes Business Sense

Harvard Business Review

By Paul Polman and Andrew Winston

Summary: Five years after 181 CEOs redefined corporate purpose to serve broader stakeholders—customers, employees, suppliers, communities, and shareholders—progress has waned, particularly in the U.S. While early enthusiasm for sustainability, including climate change and diversity initiatives, showed promise, recent trends indicate a retreat from these commitments. The Business Roundtable's pledge highlighted a shift toward stakeholder capitalism, yet recent developments suggest many companies have reverted to short-term, shareholder-centric goals, influenced by regulatory changes and political pressures against environmental, social, and governance (ESG) criteria. This backslide occurs as scientific and societal pressures intensify, underscoring the urgent need for deeper, systemic changes to address global challenges like climate change, biodiversity loss, and social inequality. Leaders must now demonstrate bold, decisive actions to build sustainable, regenerative businesses that contribute positively to society and the planet, transcending incremental improvements to embrace a net positive impact.

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