5 CULTURE TRENDS FOR 2019

JANUARY 2019

The workplace is constantly evolving.

As we approach 2019, major shifts in the work environment will continue to affect the ways companies do business. New research from O.C.Tanner’s 2018 Global Culture Study uncovers 5 big culture trends for 2019.

Companies that are looking to attract, engage, and retain top talent should anticipate and leverage these trends to create workplaces where people and teams thrive.

Check out the five latest culture trends and how you can prepare for them.

5 CULTURE TRENDS FOR 2019

What’s new in workplace culture.

CULTURE TREND #1 – A LACK OF CONNECTION AND RENEWED FOCUS ON SOCIAL AND EMOTIONAL WELLBEING

The very technology that was built to connect us is, in fact, making us more disconnected than ever before in every aspect of life, including work. We use messaging apps, text, and social media to “talk” rather than calling or walking over to a person’s desk.

46% of adults report feeling lonely, and only 53% have meaningful, in-person social interactions on a daily basis. This is important because when employees don’t feel connected to their coworkers or their workplace, they are more likely to leave. In a tight job market, that spells trouble. The U.S. Bureau of Labor Statistics reports the current quit rate is the highest since 2001.

At the same time, employees report feeling stressed and don’t feel their organizations prioritize their social and emotional wellbeing:

• Only 21% of employees say their organizations consider people a priority
• Only 56% feel a sense of belonging and inclusion at work
• Only 40% say their organizations foster happiness, both in and outside of work

Higher levels of loneliness and isolation lead to increased rates of depression and negatively impact an employee’s productivity and physical health. Companies must place a renewed focus on their people’s social and emotional wellbeing and create a positive culture in order to achieve a healthier state of wellbeing.

What you can do:

Focus on peak experiences at work that build connections. Science shows that positive peak experiences stand out and overshadow negative (or otherwise forgettable) experiences at work. So, build a workplace culture that makes connection and employee wellbeing a priority. Go beyond the physical and start focusing on social and emotional wellbeing. Develop active culture strategies and deploy products that use peak experiences to connect people to purpose, accomplishment and one another. Recognize victories, celebrate careers, prioritize wellbeing, build leaders, and unite your workplace.

CULTURE TREND #2 – THE RISE OF TECHNOLOGY INTEGRATION IN HR

The workplace of the future is in the cloud. Technology has proliferated the HR space over the past few years, but it’s now more than just using technology in HR. You have to become a digital business. Organizations must find a new way of attracting, engaging, and retaining talent with technology. Yes, employees require seamless, mobile, easy to use technology to facilitate all of their needs, but true HR technology integration is not just about automation, it’s about driving productivity and innovation.

Josh Bersin of Deloitte calls this “HR in the Flow of Work”.

Artificial Intelligence and the increased use of analytics also plays a role in helping HR understand and improve the employee experience. Yet with the use of technology, companies must be careful to use it to enhance, and not replace, connections between their people. Messaging and productivity apps should help collaboration and innovation. And organizations should provide opportunities for employees to socialize and network in-person, using technology to connect employees to their great work and successes.

What you can do:

Josh Bersin told us in a new podcast that HR tech needs to be placed “in the flow of work.” That means, for example, that rather than visit a recognition company’s app to give recognition, employee recognition plug-ins should be built right into the collaboration tools employees use every day like Outlook, Yammer, and Slack, so employees can give recognition without leaving the flow of work (see O.C. Tanner’s Workstream Integration as an example). In addition, technology should facilitate, not replace, quality interactions and connections in the workplace. Be smart in how you use technology to improve employee experiences, and provide plenty of opportunities for in-person socialization and interactions. Technology in HR should connect people to accomplishment, their careers, their best selves, and to the organization.

CULTURE TREND #3 – THE SWITCH FROM ENGAGEMENT TO PEAK EMPLOYEE EXPERIENCES

Last year, companies began to move beyond attempts to “drive” engagement. Instead, they are putting more effort into becoming workplaces people want to engage with. Corporate boards and CEOs are taking a greater interest in culture strategy, the essence of which is providing more opportunities, purpose, accomplishment, and celebration at work. This goes beyond the generic and all-encompassing “employee experience,” to creating specific positive employee experiences. In 2019, we expect most companies to have made the shift from focusing on employee engagement to creating more peak employee experiences at work.

Research by Jacob Morgan, author of The Employee Experience Advantage, found companies that made a substantial investment in employee experience were:

• 11.5X more likely to be included in Glassdoor’s Best Place to Work
• 28X more likely to be among Fast Company’s Most Innovative Companies and 2.1X more often on Forbes’ World’s Most Innovative Companies
• Had 4X the average profit and 2X the average revenue

Modern culture strategies are shifting focus and attention away from working on solving the negative problems unearthed by engagement surveys toward shaping more positive, meaningful experiences for employees every day. Today’s best places to work know that every communication, every tool, every conversation with a leader—from recruitment to retirement—plays a role in connecting employees to purpose, accomplishment, and one another. By focusing on providing peak, positive experiences, and not just fixing the negative ones, companies can help employees do and be their best.

As Morgan says, “In a world where money is no longer the primary motivating factor for employees, focusing on employee experiences is the most promising competitive advantage that organizations can create.”

What you can do:

Take a look at your organization and make sure employees are having frequent peak experiences, including meaningful work, shared success, and celebration. Does your organization have a positive work environment, beyond just physical workspace environment, that promotes belonging and inclusion?

Do you have great technology and tools that facilitate collaboration and connection? Does your company provide a meaningful purpose, opportunities for growth, appreciation, wellbeing, and strong leadership? Focus on a few areas you’d like to improve on this next year to start building peak employee experiences, and engagement will naturally increase.

CULTURE TREND #4 – MILLENNIALS BECOMING LEADERS, AS GEN Z ENTERS THE WORKPLACE

For the past decade, there has been a lot of research, speculation, and press about how Millennials have been impacting the workplace. We are now seeing their influence increase as many of these Millennials are becoming leaders and affecting their organizations.

As leaders, Millennials continue to expect change:

• 64% want to make the world a better place
• 79% desire a coach or mentor rather than a traditional boss
• 88% seek collaborative work culture rather than a competitive one
• 88% hope to incorporate work-life “integration” (as opposed to work-life balance)
• 74% ask for flexible work schedules

In addition to this generational shift, the newest generation, Gen Z (or iGen), is entering the workforce and making their own waves. They’ve grown up using technology and are experts at adopting it, but they also feel lonelier and more depressed than previous generations. Because of their high reliance on technology for communication and interaction, they can often misunderstand or misconstrue social interactions. But they are also more motivated, optimistic, and vocal about inequality. They feel a higher sense of purpose and want to feel connected and be part of something bigger.

What you can do:

Be sure your workplace is one where all employees feel valued and appreciated, regardless of their age, gender, race, or background. Provide a shared, meaningful purpose for why your organization exists to unite employees of all generations. Encourage cross-generational interactions and collaboration on projects. And use recognition to bridge the gaps and build relationships between generations.

CULTURE TREND #5 – THE MOVE TO CONTINUOUS PERFORMANCE MANAGEMENT

The saying “the annual performance review is dead” was popular in 2018. We respectfully disagree. In 2019, the annual performance review will be alive and well, but it will only be effective when combined with regular check-ins, one-on-ones, and other consistent forms of mentoring. Performance reviews aren’t dead, rather they are becoming a subset of continuous performance management.

Employees shouldn’t hear about their performance just once a year. Annual reviews, quarterly reviews, continuous one-on-one’s, and daily conversations should be a holistic and regular part of every employee’s experience. When companies used a single method of performance management, there was a decrease in perceived success at the organization. When two methods of performance management were used, there was a 44% increase in employee perceptions of success. But when three methods of performance management were used, there was a 104% increase in employees’ sense of success.

Continuous Performance Management

a combination of annual and quarterly reviews and ongoing one-on-one’s leads to employees being:

• 20% more likely to feel successful.
• 62% more likely to feel their performance is fairly assessed at their organization.
• 48% more likely to feel connected to their leader.50% more likely to feel in control of their career.
• 36% more likely to trust their leader.
• 88% more likely to feel appreciated.
• 120% more likely to feel their organization inspires employees to work toward a collective goal

One-on-ones in particular are an essential part of performance management. They allow leaders to give immediate feedback on employee successes and help employees grow and improve. They provide time for managers to set goals, check in on projects, provide mentorship and coaching, and give recognition for great work being done.

They also give leaders an opportunity to connect employees to the organization – its broader purpose, its successes, and its people.

What you can do:

Be sure you and your leaders are participating in as many methods of performance management as possible: annual reviews, quarterly reviews, regular one-on-ones, and daily conversations about performance. Feedback should celebrate successes, identify opportunities for growth and improvement, align employees’ specific work to your organization’s purpose, and provide mentorship.

These five culture trends may provide you with the potential to improve your culture strategy and focus on delivering peak workplace experiences.

Source: 2018 Global Culture Report, O.C. Tanner Institute

RECENT ISSUES

THE JEFF BEZOS 3-QUESTION TEST FOR NEW AMAZON EMPLOYEES 
November 2018UNCOMMON ADVICE FOR COMMON BUSINESS PROBLEMS
October 2018

THE EMERGENCE OF EMPLOYEE EXPERIENCE
September 2018