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As organisations globally struggle with post-Covid-19 pandemic recoveries, a new study has highlighted the need for empathy-driven leadership and equitable work policies for evolving landscape of workplace culture.
The “2024 Global Culture Report” by the O C Tanner Institute shows that there is a growing demand for empathy, flexibility, and skill development in modern workplaces for all employees including the white-collars and those involved in non-desk functions. It also gives a stark warning to companies- invest in people-centric cultures or risk losing talent.
Empathy backed by actions: A necessity
The report, based on the survey of over 42,000 employees worldwide along with HR leaders, and executives, says ’empathy’ needs to be at the forefront of effective leadership strategies for companies.
Highlighting the pivotal role of ’empathy’ in boosting employee engagement and loyalty, the report says that employees are six times more likely to be engaged when their leaders demonstrate genuine empathy and not merely as ‘understanding’. The empathy needs to be backed by actions taken for addressing employee needs, says the report..
The data from the survey, however, suggest a gap between perception and reality. It found that while 59 per cent of employees acknowledge that their leaders express empathy, other 41 per cent feel these gestures lack meaningful follow-through.
According to the report, when empathy is backed by concrete actions, employees are seven times more likely to report above-average engagement and six times more likely to feel a strong sense of belonging.
The ‘80 per cent’ workforce: Addressing the needs of non-desk-based employees
According to the report, the ‘80 per cent’ workforce, referring to the large majority of the global employees who are not corporate or desk-based employees, including frontline, retail, and service staff, often feel sidelined in organisational culture. Only 45 per cent of the respondents said they feel valued by their organisations, compared to 68 per cent of their corporate peers.
Only 35 per cent of them feel they have the autonomy to manage personal errands, and just 45 per cent feel supported in learning new skills.
The report underscores this as a critical area of intervention for fostering an inclusive work culture. It has warned that failing to engage this essential segment of the workforce could lead to higher turnover rates. “Over the past two years, organisations across all industries have found it increasingly difficult to retain the 80 per cent. Forbes reports turnover rates of up to 500 per cent per year,” the report said.
Flexibility non-negotiable for employees
According to the report, ‘flexibility’ in work arrangements has emerged as a non-negotiable for today’s employees. As many as 73 per cent of the respondents, including white-collar roles, frontline and non-desk employees, said they would consider leaving their job if not offered sufficient flexibility in how, where, and when they work.
The report reveals that implementing flexibility that is both equitable and practical is a challenge for organisations, particularly in countries like India where frontline workers constitute a large part of the workforce. The report suggests that flexibility to be customised to different roles ensuring all employees feel supported.
Skill development: A pathway to retention
Upskilling is a key strategy for companies to address the talent scarcity and retention challenges, according to the report. The report reveals that only 10 per cent of the ‘80 per cent’ workforce feel they have adequate access to the necessary tools, technology, and growth opportunities to advance in their roles.
The report calls for organisations to close this gap and says that investing in continuous learning see 14 times increase in employee engagement and 10 times increase in fulfilment.
First Published: Sep 14 2024 | 6:14 PM IST
