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It´s been one year since COVID-19 stopped being a public health emergency, and around two since companies started returning to the office after lockdowns. Debates about the future of (hybrid) work morphed into conflicts about companies requiring workers to return to the office.
This mandate is causing great tension between organizations and employees. Companies worry about stagnant productivity. AIHR lists productivity as one of 2024’s top trends, while PwC’s CEO survey found that CEOs estimate administrative inefficiency at 40%. On the other hand, employees are concerned about the cost of returning to the office. Gartner reported that almost half of its surveyed employees say the costs of returning to the office outweigh the benefits.
This conflict's heart is a lack of trust from both sides. Gartner´s survey also showed that 37% of organizations don’t trust their employees, and 47% of employees don´t trust their organization. HR departments are caught in the middle, and their role is at risk of being set back years, moving from strategic partners and culture champions to clerical time-tracking duties, attendance reports, and handing out warning letters to the non-compliant. The mediocre will feel right at home. After all, it´s easier to track attendance than it is to shape a high-performing culture. But if HR departments want to avoid this loose-loose battle, something has to change. Here are five recommendations to repair the broken trust between organizations and employees.
Understand that both sides have a point
Trust goes both ways. Companies are rightly upset when results get dragged out through endless virtual meetings, and employees are rightly upset about the costs of returning after proving they can work from home. Senior leaders are tired of hearing grocery store or beach background noise in virtual meetings, and employees are right when their managers lack basic supervisory skills. Gartner reported that 50% of employees have no confidence in their managers´ ability to lead. In the UK, the Chartered Management Institute found that 82% of managers who enter management positions have not had any formal management or leadership training.
Leaders and HR, Walk the Talk
Nothing upsets trust more than the perception of injustice. If employees note (and they do) that their leaders are held to a lower standard, they´ll never trust the organization. Former HPE CEO Meg Whitman knew this well when she applied the rules regardless of seniority (working from the office, parking spaces, office setup). Whatever rule you apply to employees, be sure to apply (and enforce!) to senior leaders.
"Instead of focusing on people attending the office, focus on their goals. Ensure managers are equippedwith the right resources and training and that the goal-setting processrunseffectively."
Have Incentives in Place
Employees won´t return to the office happily because of high costs (commuting times, gas, eating out, etc.). Companies that want to get it right will have to make it up somehow. Flexible work schedules and free meals are just some of the things that companies can offer to sweeten the deal for employees. Whether or not these arrangements make a difference will depend on the status of each company´s employee value proposition.
Investing in employee perks may seem like a non-starter in a climate of low productivity concerns. However, if these are considered investments to gain employee engagement with the company, then the investment makes sense. HR leaders would do wise to be proactive in offering employees something instead of simply implementing time-tracking disciplinary systems.
Be prepared to be flexible
Engagement plans must be tailored to the employee; that much is well established. The same should apply to the return to the office. Companies should focus on providing PTO when it makes sense, as well as special accommodations. This is especially the case with high-performers who have proven they can deliver results.
Have a Robust, goal-based performance management system
There´s a reason why performance management is the backbone of HR processes (from merit increases to performance improvement plans). Instead of focusing on people attending the office, focus on their goals. Ensure managers are equipped with the right resources and training and that the goal-setting process runs effectively. This, will allow the company to ensure people are performing and not just sitting at their desks.
The current tension between employees and organizations is unlikely to go away. It is a true conflict in the labor market, between the supply and demand sides. Gen Zs entering the workforce (with a primary focus on health and well-being), and the rise of the digital nomad as an aspirational lifestyle, will not go away. Nor will organizations’ need for productivity. HR is uniquely positioned to help de-escalate the tension and steer both parties into a win-win outcome while gaining a reputation as employers. That will require boldness, creativity, and a unique sense of purpose.
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