Meghan Stettler
Director
O.C. Tanner
PRESENTER
JUNE 2022
Workplace culture, or a lack thereof, is one of the leading contributors to the Great Resignation. Employees are digging deep to re-evaluate everything. They are looking for indications that their work is meaningful, that their organization recognizes and values their unique contributions, and that they feel connected to those with whom they work. HR leaders must create dynamic cultures to attract, engage and retain top talent. How can CHROs achieve this while the market continues to shift?
C-level human resources executives recently gathered at Evanta’s Dallas CHRO Executive Summit to discuss the key factors affecting the Great Resignation and tactics for organizational resilience. Meghan Stettler, Director at O.C. Tanner, led the conversation with findings from O.C. Tanner Institute’s 2022 Global Culture Report.
The employee value proposition has fundamentally changed. What they are really asking for is a fulfilling employee experience.”
The study examined hundreds of thousands of micro moments employees experience each day and found that the most powerful peak experiences fulfill employees’ basic psychological needs for autonomy, mastery and connection. Stettler shared that it is critical for CHROs to develop fulfilling and memorable experiences that amplify resilience.
These are the key takeaways from the discussion:
- How to Establish Autonomy
CHROs are constantly hearing how employees want flexibility. They want to work in the location of their choosing and make their own schedules. But, Stettler shared that employees' needs actually go beyond flexibility, “What they really want is autonomy - the need to experience a sense of freedom and control in making one’s choices.”
Stettler clarified that employees do not want to work for a company without structure, but instead they are looking to be “co-creators” in their experience. She indicated, “We know employees operate best under a common framework with the ability to adjust and personalize.”
In the report, O.C. Tanner found that employees who have schedule and location flexibility at their organizations have a 77% increase in retention and a 41% increase in engagement. Additionally, when employees have a high sense of autonomy in how they accomplish their work, they are 39% more likely to have a high sense of fulfillment.
- How to Encourage Mastery
Humans have an innate need to feel useful, and opportunities to develop new skills and achieve expertise correlates to feelings of mastery satisfaction. Stettler shared that employees want to do meaningful work by leveraging their personal passions, skill sets, and talents to uniquely contribute.
The report indicated that when employees feel like they can demonstrate their full potential, they are 60% more fulfilled. And adversely, employees who do not have opportunities for career development have increased feelings of ineffectiveness and failure.
Stettler stated how this does not just apply to mastery within an employee's career, but HR leaders who encourage development of skills inside the organization and passions outside of the organization provide better employee experiences and are more likely to see retention.
- How to Foster Connectivity
Connection with others is a fundamental need, and it has been reported that social isolation and loneliness can have as much of a negative effect on the body as smoking cigarettes. It is crucial for HR leaders to create a culture of rich bonding experiences, where leaders and employees can meet regularly to ensure employees feel seen, heard, and valued.
Stettler shared four ways CHROs can encourage connection between leaders and employees:
- Have one-on-one meetings in flexible settings. Employees tend to speak more freely when they are in comfortable environments and their anxieties are taken away.
- Learn what employees care about outside of work. This can help when developing a flexible model, and you can also evaluate how to incorporate their passions into the employee experience.
- Ask employees, “What role would you like to do (whether it exists or not), and what can I do as your manager to encourage your development in this company?” Some employees can be hesitant to speak up about their career goals and knowing this information can help with internal recruitment and ensuring employees are in the best position to succeed.
- Integrate recognition into your culture. Appreciation is critical to building connections, so celebrate the everyday efforts, reward employees when they go above and beyond, and don’t forget to commemorate careers over time.
To maximize connection, recognition needs to move from a once or twice a year transaction to a way of life, a natural response to great work.”
The report found that when employees feel a strong connection to their team and leader there is a 162% increase in the likelihood of a high sense of fulfillment.
Meet Your Employees Psychological Needs
O.C. Tanner’s 2022 Global Culture Report found that when autonomy, mastery and connection needs are met, there is a 716% increase in the likelihood employees will feel very fulfilled in their job, and organizations see a 1245% increase in great work. As the Great Resignation is not showing any signs of slowing, it is time to take a step back and evaluate how to address employees' fundamental psychological needs when developing the employee experience.
To learn more best practices for the top priorities facing CHROs today, find your local Evanta CHRO community and connect with like-minded C-level executives on these mission critical topics.
Content adapted from the Dallas CHRO Executive Summit. Special thanks to all participating companies.
by CHROs, for CHROs
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