O.C. Tanner reveals its latest research showing the importance of community, leadership and culture in employee retention
This article was produced in partnership with O.C. Tanner
From post-COVID uncertainty to a looming recession, employers have had a lot on their plates – and throughout the last year, employee retention has remained one of their biggest challenges.
O.C. Tanner has released its 2023 Global Culture Report, where it examines the latest trends around employee retention, culture and leadership. When it comes to keeping your best people, it found that the most effective strategy can be summed up in one word – community.
“As organisations adjust to a new era of work, connection is a big challenge,” the report says.
“Successful work organisations reconnect with their people by adopting a community mindset where employees find meaning in their work, believe that they belong, and feel more fulfilled.”
O.C. Tanner’s research showed that a sense of belonging improved employee retention by 43%, and boosted the average employee’s estimated tenure by a significant 84%. It also appeared to be effective in reducing negative mental health symptoms, with employees who feel a sense of belonging reporting 38% less burnout.
This suggests that a culture of community is no longer just a ‘nice to have’- instead, it may well be the key to retaining your talent and ensuring high satisfaction and productivity.
The role of leaders is particularly vital in the culture of an organisation, and the Global Culture Report notes that for a community culture to be successful, leaders will need as much support as the people they manage.
“The healthiest cultures don’t just treat every employee as a leader. They treat every leader as an employee,” it says.
“Increasing their recognition and reducing their stress and anxiety will directly result in better leadership and less burnout. Until then, leaders have a difficult and lonely role, and organisations face consequences.”
Creating a culture of belonging isn’t just about the occasional team lunch, or bringing in ‘one size fits all’ solutions. It’s important to take into account each employee’s personal goals and motivations, and to explore how they personally find fulfilment.
Employees have been doing a lot of soul-searching over the past two years, and have emerged wanting to find more meaning and value in their work. This means that having a clear direction and purpose is vital to fulfilment, and companies should be creating an environment where everyone feels they are personally contributing towards a common goal.
The statistics bear this out quite spectacularly. The Global Culture Report found that a high level of community, connection and belonging improved the odds of fulfilment by 489%, and boosted employees’ sense of purpose by 583%.
“Personal fulfilment is now an expectation of employees, which means it’s now a mandate for organisations,” the report says. “Balance, growth, purpose and community all contribute to fulfilment, which in turn improves more than just retention. It drives great work.”
In addition to a sense of team purpose, employees need to feel that they are being individually recognised for the work they do, and that they have a clear growth pathway with the company.
The Global Culture Report found that employees are increasingly looking to leave the ‘niche expert’ box, and to instead gather a broader range of skills and knowledge. For employers, this is only a positive – the research showed that when generalists innovate to overcome obstacles, the organisation is 26 times more likely to thrive.
However, the research also shows that generalists are also the least likely to feel appreciated and recognised compared to their ‘expert’ colleagues.
“Generalists have the breadth of experience and skills to innovate and lead in the constantly changing workplace, but they need recognition and opportunities to grow in order to thrive,” the report says.
“Organisations can help generalists by giving them changes to apply their strengths, opportunities to expand their skills, and integrated recognition that deepens their connection to purpose.”
“Employees all want to belong in their workplace communities,” the report concludes.
“We hope the insights from this year’s Global Culture Report will fuel the momentum for stronger connection, belonging, and community in the future.”
To find out more and read the full 2023 Global Culture Report, click here.
