Executive Summary | Global Culture Report

Organisations 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 Talent Magnets™: A chart showing the current state of six essential elements that define thriving cultures

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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. Organisations that adopt a hybrid workplace can help employees thrive by tailoring space to the work best done there—and by staying flexible.

A table showing why 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

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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 recognise 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

Hybrid Workplaces Takeaway: Great work requires connection and flexibility. A hybrid workplace provides both when employees can do their work in the space best suited for it.

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A near-singular focus on employee engagement has distracted organisations 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 behaviours 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.

Organisations that prioritise great work see better results than those that focus on engagement:

A table showing the percentage in probability of an organizational outcome occurring as compared to employees who score below average

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TABLE SHOWS THE PERCENTAGE DIFFERENCE IN THE PROBABILITY OF THE ORGANISATIONAL 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

Engagement Revisited Takeaway: Organizations should rethink the priority of ambiguous metrics such as employee engagement that don’t directly produce or predict business success. Measuring great work leads to more innovation, higher retention, and stronger workplace cultures.

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

An animation showing that 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

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Organisations 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. Recognising people for their contributions highlights and connects their achievements to the organisation’s purpose and their teams. When employees experience modern leadership and integrated recognition, the odds of satisfying all three needs increase:

A table showing that when employees experience modern leadership and integrated recognition, the odds of satisfying their need for autonomy, connection, and mastery increases

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Peak Experiences Takeaway: To create peak experiences and powerful outcomes, organizations must meet employees’ basic psychological needs, integrate recognition into workplace culture, and encourage leaders to connect their people to purpose, accomplishment, and one another.

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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 recognised 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 recognised a peer for their help, we saw two significant improvements:

An animation showing that when employees recognized a peer for their help, there was a 55% increase in the strength of connection between the two employees

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55%

increase in the strength of connection between the two employees

An animation showing that when employees recognized a peer for their help, there was a 52% increase in the likelihood of helping their colleague with work in the future

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52%

increase in the likelihood of helping their colleague with work in the future

Recognition helps maintain an energised environment, allows for more connection between people, and makes the employee experience meaningful. —KARINE CLÉMENT-DEBROSSE, SENIOR ADVISOR, HUMAN RESOURCES, BDC

Recognition Takeaway: Creating strong connections between employees and ultimately achieving great work is more likely when organizations design their recognition programs with plentiful opportunities for both public and monetary recognition.

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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 organisation 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.

An animation showing the connection between an employee, their teams, leaders, and organizations

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

A table showing that employees with strong connections to their teams, leaders, and organizations are more likely to thrive and do great work

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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

Connection Takeaway: To address or avoid the harm of social fragmentation, leaders must intentionally connect with individuals on their teams, and then help connect those employees to each other and the organization.

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See more on "Company Culture"

• Guide to employee recognition programs
• Tips to celebrate work anniversaries
• Recognition in the modern workplace
• Energise your company culture
• Product: Culture Cloud