Organizations are still adapting to the sudden and substantive changes created by the crises of 2020. Fortunately, as the dust settles, opportunities to strengthen workplace culture are becoming easier to see.

This year’s report examines the impact that hybrid workplaces, peak experiences, employee recognition, and our need for connection will have on cultures and business performance. Scroll down for the highlights or click into the details.

THE TALENT MAGNETS™
The current state of six essential elements that define thriving cultures.

YEAR-OVER-YEAR CHANGE

The pandemic convincingly clarified that how work gets done is more important than where it gets done. That said, data confirms the office is more conducive to certain types of work than remote locations, and vice versa. Organizations that adopt a hybrid workplace can help employees thrive by tailoring space to the work best done there—and by staying flexible.

EMPLOYEES AND LEADERS SHOULD CO-CREATE THE BEST SCENARIOS FOR THEIR ROLES, PREFERENCES, AND CULTURAL EXPERIENCES TO ULTIMATELY HELP THEM STAY CONNECTED AND PRODUCE GREAT WORK.

Flexibility can mean different things to each of us, and we recognize there is no one-size-fits-all solution given the variety of roles, work requirements, and business needs we have.

—KATHLEEN HOGAN, CHIEF PEOPLE OFFICER, MICROSOFT

A near-singular focus on employee engagement has distracted organizations from what matters more: the production of great work. Research shows employees and leaders relate to engagement through the quality of their work. Plus, the behaviors and practices associated with great work are more specific and easier to define, measure, and train. They’re also more reliable and predictive of business success because they directly affect business outcomes.

Organizations that prioritize great work see better results than those that focus on engagement:

TABLE SHOWS THE PERCENTAGE DIFFERENCE IN THE PROBABILITY OF THE ORGANIZATIONAL OUTCOME OCCURRING.

To do great work is to put your heart and soul into something. To not only do what you’re told, but to put your stamp on something; to add a little extra; to have pride in your work.

—EMPLOYEE, RESEARCH INTERVIEW

Peak experiences profoundly shape the positive feelings employees have about their work, team members, and the organization. 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.

THE TALENT MAGNETS™
The current state of six essential elements that define thriving cultures.

YEAR-OVER-YEAR CHANGE

Organizations that satisfy the three psychological needs increase several important outcomes:

655%

EMPLOYEE EXPERIENCE

1,245%

GREAT WORK

795%

THRIVING CULTURE

316%

EMPLOYEE NET PROMOTER SCORE

Leadership is the foundation for positive employee experiences. Recognizing people for their contributions highlights and connects their achievements to the organization’s purpose and their teams. When employees experience modern leadership and integrated recognition, the odds of satisfying all three needs increase:

It’s common knowledge that employee appreciation significantly impacts workplace culture, but this year, we had a breakthrough: Empirical evidence that a causal relationship exists between peer recognition and connection. Specifically, we conducted an experiment that demonstrates employees who are recognized for extra effort are more likely to feel a stronger connection, help their colleagues succeed again, and, ultimately, produce great work. Equally enlightening, recognition that includes both a public and monetary (points-based) component proves to be far more effective.

When employees recognized a peer for their help, we saw two significant improvements:

55%

INCREASE IN THE STRENGTH OF CONNECTION BETWEEN THE TWO EMPLOYEES

52%

INCREASE IN THE LIKELIHOOD OF HELPING THEIR COLLEAGUE WITH WORK IN THE FUTURE

Recognition helps maintain an energized environment, allows for more connection between people, and makes the employee experience meaningful.

—KARINE CLÉMENT-DEBROSSE, SENIOR ADVISOR, HUMAN RESOURCES, BDC

The bad news is a lack of connection threatens workplace culture. The good news is employees who feel more connected to their teams, leaders, and organization have much better work experiences, which lead to better business performance. Social connections are more than team members eating lunch together—they’re about establishing strong relationships and ensuring everyone feels like they belong.

Employees with strong connections to their teams, leaders, and organizations are more likely to thrive and do great work:

I define connection as the energy that exists between people when they feel seen, heard, and valued; when they can give and receive without judgment; and when they derive sustenance and strength from the relationship.

—BRENÉ BROWN, AUTHOR AND SPEAKER
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