CHAPTER 8
Increasing Efficiency, Ensuring Compliance and Security,and Building Culture

A Great Place to Work Even When You Aren't Working

The 2020 COVID pandemic devastated the hospitality industry. At one point 75% of hotel rooms were empty and annual revenues dropped by almost 50%.1 Hotel companies had to radically reduce operating costs to stay solvent, and an obvious way to save money was reducing hotel staff. Most hotel companies furloughed or laid off employees, but one hotel chain focused efforts on protecting the well-being of its employees. The company continued providing health care benefits to employees even though they were not working and created a program to help employees find jobs in the grocery and distribution industries that were growing due to the pandemic. At a time when the company had clear reasons to cut employee programs to save costs, it invested in creating programs to support employees. The company kept its reputation as a great place to work even when its employees were not working, which made it far easier for the hotel to ramp back up when people started traveling again.

Money is sometimes called the lifeblood of organizations. If a for-profit company does not make money, then at some point it will go under or be acquired. Government and nonprofit organizations have to control costs relative to the services they provide, or they may be defunded or restructured. Given the role money has on company survival, every company considers the financial implications of workforce decisions and practices by looking for ways to increase revenue or decrease costs. But as the story at the beginning of the chapter illustrates, money is not the only thing that matters from an employee experience perspective. It is one thing for a company to say it values things beyond money, but another to demonstrate this through action. The hotel company in this story demonstrated that it valued employee well-being by making significant changes to its policies and operations to help employees through the crisis, even though it meant spending money at a time when money was in short supply. One might argue these changes were financially intelligent because it might help the company rehire staff after the crisis subsided. But the company leaders did not know if that would happen. In fact, many employees found and permanently switched to higher-paying jobs in other industries. The main reason the company invested in providing employees with benefits and job transition support was because they believed it was the right thing to do. It was not about reducing costs or increasing revenue. It was about placing a value on employee well-being.

The previous chapters discussed four perennial workforce challenges organizations must address simply to employ people (designing organizations, filling roles, developing capabilities, engaging performance). These actions define what a company must do to build and manage its workforce. This chapter discusses three perennial workforce challenges that reflect how the company does these things. From a company perspective, these challenges are about increasing efficiency, managing risk, and creating effective cultures. From an employee experience perspective, they are about valuing employees' time, rights and security, well-being, and social communities. Companies do not value these things just by talking about them. Companies value these things by thinking about them in much the same way companies think about money. They influence how decisions are made at every level of the organization. They are important simply because they are valuable, and they are valuable because they are important. There are strong financial benefits associated with saving employees' time, protecting their safety and security, and supporting their communities. Increasing employee efficiency improves workforce productivity; decreasing security breaches or contract violations can save companies millions of dollars; and having more diverse, healthy, and socially responsible cultures is associated with higher levels of company performance.2 But companies that strongly value these things do not do them solely for monetary reasons. They do them out of a belief it is the right thing to do.

What It Means for an Organization to Value Something

Values reflect the “relative worth, utility, or importance” placed on actions and outcomes.3 The values of an organization are expressed in three ways: what it says, what it does, and what it rewards. Of these three, the first is the most visible but frequently the least impactful. Truly demonstrating support for values requires tangibly changing what a company does and how it rewards employees. For example, most companies say they value workforce diversity and inclusion. Making a visible commitment to supporting demographicallyi diverse workforces does affect how an organization is perceived by employees and applicants.4 But saying a company values diversity does not mean its workforce practices support hiring and retention of diverse employees. The challenges of workforce diversity and inclusion are a result of social biases and economic situations that create inequality in the distribution of career opportunities and the judgment of people's value and potential.5 The only way to create inclusive workforces is to eliminate biases that affect how career opportunities are distributed and how talent decisions are made. Many corporate diversity efforts focus on sharing statistics that highlight the lack of corporate diversity and stress the importance of inclusion but do little to actually change how jobs are designed and staffed or modify how employees are developed, managed, and rewarded. If companies want to create inclusive organizations, they must do more than talk about diversity. They must change the processes that influence job design, staffing and pay decisions, management behavior, and employee development.

Organizations that truly show value for diversity and social responsibility do not treat these things like programs or marketing campaigns. They incorporate these values into ongoing decisions and business operations. In a sense, these values are treated similarly to how companies demonstrate the value they place on money. The role of the chief financial officer in a company is not just to talk about the importance of being financially solvent and track profit and loss. It is also to influence how the company makes business decisions so it achieves its financial targets. All companies value money, but not all companies value it in the same way. Companies differ in how much they emphasize controlling costs and their willingness to invest in ventures to drive future revenue. These financial values influence how jobs and organizations are designed and how the workforce is managed and rewarded. The same approach is necessary if companies wish to truly value other nonmonetary outcomes that influence employee experience.

It is unlikely a company would design a compensation process or staff a new business function without input from finance. But many do it without input from people in the company focused on topics related to diversity and corporate social responsibility. This was illustrated in a conversation I had with a chief diversity officer about gender pay equity. When I asked what her company was doing to address the issue, she shared that executives were given a report showing disparity in pay between men and women in different parts of the company. When I asked if the company was making changes to the processes used to set pay levels and award salary increases, she told me that compensation was managed by a different group. The company expressed a commitment to gender pay equity but was not changing the one thing that directly creates pay inequity: the processes that determine pay levels. By contrast, consider this story about a technology company's efforts to increase the neurodiversity of its workforce. Autism spectrum disorder affects about 2% of the adult population.6 Many people with autism have valuable job skills, but they often struggle with social interactions involved in the hiring processes and onboarding methods used by most companies.7 A global technology company wanted to tap into this vastly underutilized talent pool. As a person involved in the program told me, the goal was not to employ people because they have autism but to find a way to identify and employ autistic people who possess job skills the company needs. The company created a process for selecting and developing employees that was not biased against people with autism. It replaced job interviews with work simulation exercises and made new employee training compatible with how people with autism prefer to interact with others. The company demonstrated its commitment to diversity by investing in changing its hiring and training programs to remove bias against people with autism. Companies demonstrate their true values based on what they do, not what they talk about.

Increasing Efficiency: Valuing Employees' Time

Many conversations I have with companies focus on topics of user adoption related to getting employees to use systems, complete processes, or take training programs. In one instance a company was getting resistance toward a self-service system that enabled managers to create new job requisitions. Having managers do this task enabled the company to save money by eliminating support staff. The process struck me as cumbersome and nonintuitive, and my initial thought was “Why would anyone want to do this if they didn't have to?” I asked if the company's senior executives used the system. The response was, “No, their time is too important to spend on this sort of administrative task.” I then asked in the most respectful way possible, “At what level down the org chart does people's time cease to be important?”

The most precious resource employees give to an organization is their time. How we choose to use our time is literally how we choose to use our lives. At the risk of sounding overly dramatic, when companies do not value employees' time, in a sense they are not valuing employees' lives. Psychologists use the term illegitimate tasks to describe work activities that employees view as an unreasonable or improper use of their time given the purpose of their job.8 This includes performing administrative or routine work that employees feel should not be part of their role or requiring employees to use tools and methods that are overly cumbersome, inefficient, and time-consuming. These tasks create significant stress and frustration for employees because they prevent them from focusing on the core purpose of their work. They also send a message to employees that their time is of less value than other people in the company who do not have to do these tasks. This can create a sense of organizational class hierarchy that negatively affects employee engagement, commitment, and innovation.9

Organizations frequently make decisions that save the company money at the cost of employees' time. For example, a hospital decided to save money on facilities staff by limiting waste collection to patient rooms. Doctors and nurses were told they had to remove trash from their workspaces themselves. This decision may have made sense looking at a financial spreadsheet somewhere, but it did not make sense to the highly trained health care professionals who were now expected to spend part of their workday throwing out garbage instead of caring for patients. Issues related to wasting employees' time are common when it comes to use of self-service technology solutions that enable employees to complete administrative tasks instead of having them completed by support professionals. This includes activities such as procuring job materials, completing regulatory paperwork, filing expense reports, posting job openings, and other actions associated with the bureaucratic side of work. Self-service solutions enable companies to save workforce costs by eliminating support services roles. They also provide employees with the ability to perform tasks independently, which can create a greater sense of efficiency and autonomy. However, these advantages are predicated on the assumption that self-service solutions are effective. Sadly, many of these systems are nonintuitive, difficult to access, and time-consuming to use.10 Forcing employees to use bad self-service solutions is stupid, ineffective, and cruel.

  • Stupid. The pay rate of line employees is often higher than the pay rate of administrative support staff. Line employees are not employed to do administrative work, nor are they hired based on their administrative skills. Many self-service systems require higher paid line employees to complete non-value-adding tasks that could be done by lower-paid, skilled administrative staff in much less time.
  • Ineffective. When self-service systems are poorly designed, employees will try to minimize time spent in the solution. This includes leaving out or changing information to make the process faster. For example, a manager might reclassify an employee turnover reason from involuntary to voluntary to avoid going through additional required steps if they instead provided the real reason why an employee left the company. The result is a solution that systematically creates bad data.
  • Cruel. Self-service solutions often support tasks that employees must complete to move forward with their work (e.g., get a new computer, hire a staff member, complete expenses). Forcing employees to use poorly designed self-service solutions to perform these tasks can create considerable stress and anxiety. Many employees openly admit to having lost their tempers due to bad experiences with self-service technology. Companies are requiring employees to use systems that literally raise their blood pressure.

Technology solutions that employees are required to use should be simple, intuitive, and efficient. The best examples of this kind of technology are found in online consumer platforms where sales depend on creating effective customer experiences. These solutions use mobile access, chatbots, artificially intelligent search engines, and robotic process automation to make it easy for customers to find, purchase, and track the delivery of products. The best solutions also make it easy for end users to talk to a person if the technology is not providing them with the experience they want. A user design expert once told me that technology should not prevent system users from contacting an actual person if they feel they need it. What technology should do is connect them to the right person and maximize the value of the interaction. It is insensitive to design technology solutions that make it hard for employees to get help so a company can save costs on administrative support staff. Access to support staff also affects employee resilience and productivity, particularly in hybrid/remote work environments.11

Decisions that affect how employees spend their time should be reviewed as being appropriate and relevant to their role. It is financially inefficient and culturally disrespectful to ask people hired for their specialized skills to spend time on tasks that are unrelated to the purpose of their job. For example, some retail companies have deployment teams assigned to protect the time of store managers and frontline staff. Any corporate action that will affect store employees is reviewed by this team. Actions that are overly distracting or time-consuming are sent back to be further refined and simplified. As a member of one of these teams explained, they wanted store employees focused on selling and delivering products and services to their customers, and so the company was extremely sensitive to any requests that might reduce the time they spent on this core activity. Another way to ensure a company truly appreciates the value of their employees' time is to require executives to use the same self-service solutions they expect other employees to use and make sure they do it using the same level of administrative support other employees receive. I have only encountered two global companies that actually do this. Before a technology solution is rolled out to employees, senior executives have to use it themselves. If the technology is deemed by the executives to be too cumbersome, nonintuitive, or time-consuming then it is sent back to be reworked before it is deployed.

Companies cannot protect employees from the accelerating pace of change they face at work. Nor can they protect employees from the increasing levels of distractions and stress caused by a hyper-digitalized world. But companies can protect employees' time so they can focus on what matters most in their jobs. The more engaged employees are by the purpose of their work, the more frustrated they become when forced to devote time to administrative tasks or use inefficient systems.12 Burnout is not simply a result of spending too much time working; it also is a result of spending too much time on tasks that are not seen as important to what really matters at work.13

Managing Risks: Valuing Employees' Security, Legal Rights, and Safety

People are experiencing increasing anxiety as a result of many things associated with digitalization including economic uncertainty, social unrest, and the modern “always on/always connected” nature of work and life.14 People do not perform well when they are anxious, and an important element for creating an effective, adaptable company is ensuring employees feel safe and secure in the workplace.15 This includes trusting that the company is acting in good faith in terms of fulfilling contractual obligations and engaging in legal business practices.16 This requires managing employee experiences related to security, privacy, compliance, organizational safety climate, and corporate ethics.

The Employee Experience and Security

Employee concerns about security can be divided into physical protection and data protection. Physical security can be a major issue in jobs where robbery and other forms of assault may occur (e.g., retail store employees). Employees who witness or experience physical threats often suffer from anxiety for years afterwards.17 Advances in security technology are providing companies with a number of tools to protect the physical security of employees. This includes solutions that enable real-time control over people's access to facilities, active workplace monitoring, and remote intervention in the case of security incidents. These solutions can significantly improve physical security. At the same time, how and why they are being used should be clearly communicated to employees; otherwise, they may be perceived as a way for the company to monitor employees as opposed to protecting them.18

Data protection has become a major concern in all jobs due to growing incidents of identity theft and ransomware attacks.19 Most data security breaches are unintentional results of employees clicking on phishing e-mails or doing online activities that expose company data to outside attacks.20 Employees are the greatest source of vulnerability when it comes to protecting workplace data.21 Creating data security is largely about protecting employees from themselves by influencing three aspects of the work environment: ability, awareness, and attitude.

  • Ability involves making it easy to be secure or, more specifically making it hard to create security risks. This involves what are called frictionless security measures that automatically address security vulnerabilities, for example, integrating staffing systems and security systems to ensure employees are automatically given appropriate access to data when they start new job roles and automatically shutting off security clearances when employees transition out of positions.
  • Awareness is about ensuring employees understand how to avoid security risks. This can be addressed through training and creating a culture that encourages and values secure behavior,22 for example, employees asking others for appropriate identification before giving them access to secure locations.
  • Attitudes is about employees feeling a commitment to keeping the organization secure. It involves employees feeling a sense of engagement and ownership toward protecting the welfare of the company, its employees, and its customers. This is achieved by managing employees in a manner that makes them feel respected, cared for, and valued.

One of the consequences digitalization has on employee experience is increased security risk. The same tools that enable worldwide communication and data sharing also facilitate global data theft and misuse. A single security breach, intentional or otherwise, can do lasting damage to thousands of employees and customers. As security becomes even more critical over the coming years, a key part of creating positive employee experiences will be ensuring employees feel secure from harm.

The Employee Experience and Privacy

Privacy has become a major social topic both inside and outside of companies. Many countries have stringent laws that protect and limit the collection and use of employee data.23 This is creating a unique challenge for companies given the inherent conflict between security and privacy. Security is about controlling access to information and physical spaces through surveillance and prevention. Companies monitor physical and electronic information to ensure the right people have access while keeping the wrong people out. Surveillance and prevention also trigger employee concerns about privacy and freedom. Employees do not like to be constantly monitored and many view privacy as a human right. Employees also do not want their access to data and physical locations to be highly constrained. Access to information is necessary to create agile, collaborative, and innovative organizations, and nothing hurts a person's sense of belongingness quite like a locked door that implies they are not welcome here. Employees want the freedom to access secure systems, data, and locations to get their work done without feeling like they are being constantly monitored. This requires balancing security access, personnel surveillance, and perceptions of privacy.

Companies find themselves in a difficult situation of needing to restrict and track access to data to protect security but not wanting to give employees an experience of feeling unfairly constrained and monitored. Achieving this balance requires giving employees insight into what data are being collected and why this collection is relevant to their work.24 Employee attitudes toward privacy are influenced by the level of transparency and control they have over how data are being tracked and used.25 Employees are more accepting of data monitoring when they know what data are being collected, understand why it is relevant to their jobs, and have some ability to access and control how the data are used over time.26 People do not like the feeling that someone is secretly watching them. Companies can lessen employee concerns over data privacy through explaining how the organization uses data and, if relevant, providing employees with feedback based on the data (e.g., sharing data that provides insight into work patterns or other behaviors that might increase their self-awareness).27

The book The Second Machine Age noted that “when information was mostly analog the laws of physics created an automatic zone of privacy. In a digital world, privacy requires explicitly designed institutions, incentives laws, technologies, and norms.”28 As security threats increase, the conflict between protecting employee privacy and employee safety will only become more challenging. Addressing this challenge will require actively listening and collaborating with employees to create employee experiences that effectively balance surveillance, security, privacy, and freedom of access.

The Employee Experience and Compliance

The concept of employment is at its core a legal contract between an individual and a company that defines the terms of the work relationship and conveys certain regulatory protections. Compliance is typically thought of as an administrative activity to keep track of details related to actions such as payroll accuracy, job training certifications, and use of equipment. But how a company manages compliance can have a significant influence on employee experience. Even small contract breaches or violations of work rules, whether intentional or not, can significantly undermine employee trust in the organization.29 It can also create significant financial costs and tarnish a company's employment brand.

The primary technology solutions used to ensure compliance are compensation, payroll and benefits management, contractor management, certification management, and facilities and systems access. The obvious benefits of these solutions are about efficiency. Automating compliance activities reduces paperwork and saves people from having to manually sign up for new systems, enroll in new processes, and request new resources. It also supports data security by ensuring people's data permissions match their roles. Compliance solutions also affect organizational agility and employee engagement. A company's ability to create new organizational structures, add new employees, manage acquisitions, or change pay practices is constrained by compliance solutions. For example, payroll solutions limit the ability of companies to add employees in new countries or regions with different compensation practices and regulations. Compliance solutions also damage employee engagement if they do not work properly, for example, failing to give employees access to the resources needed to do their role or messing up someone's paycheck.

A powerful example demonstrating the strategic value of compliance solutions for shaping employee experience occurred in a consumer products company in spring 2020. This company employed hundreds of salespeople whose pay was based on selling almost a thousand different products. Their monthly income was tied to achieving sales targets using a complex formula of commissions incentivizing different product sales in different regions. COVID's impact on consumer behavior made it impossible for salespeople to realistically achieve these targets, which meant they were going to lose most of their monthly income. The company was also facing significant financial losses, and its survival depended on finding ways to achieve some level of sales revenue. Fortunately, the company was using a compensation management technology solution that made it possible to quickly redesign and implement a new commission plan that reflected the changed economic environment. This provided employees with a way to preserve much of their income by selling against revised and achievable targets. Company leaders commented that without this technology it would have been impossible for the company to adapt its sales compensation structure so quickly, and they would have lost a lot of valuable sales employees when they most needed them.

If you asked someone to list technology solutions based on their impact on employee experience, it might seem unlikely that they would include compliance solutions such as payroll and compensation management. But if that person was an HR leader who has managed a complex global workforce or supported a company going through significant organizational change, then compliance solutions such as payroll and compensation management might be near the top of the list.

The Employee Experience and Organizational Safety Climate

Safety climate describes the shared perceptions employees have toward how safety is managed within the organization.30 Fostering a strong safety climate can have a major influence on employee experience, particularly in jobs and organizations where there are considerable safety risks. A company's safety climate influences how jobs are designed and how employees are trained and managed. It is also visible in how people act such as employees being mindful to wear safety glasses in certain work areas or reminding each other to hold handrails while on a stairway. Safety climate affects the frequency of accidents and injuries that occur in an organization and influences employee attitudes toward the organization as a whole.31

There are right and wrong ways to build a safety climate. The wrong way is to reward employees for not having accidents or injuries, because this can lead to people intentionally hiding safety incidents.ii The right way is to focus on designing jobs and work schedules in a way that reduces risk of injury, ensuring employees have proper safety training and equipment, and recognizing and role modeling behaviors that reduce the likelihood of accidents and injuries.32 This may include using learning and certification management technology to ensure people have the right training and skills to safely perform different jobs, using wearable and biometric technology to monitor employee health statistics, and using experience measurement technology to track employee safety perceptions.

The Employee Experience and Corporate Ethics

An organization's commitment to ethical behavior influences the attitudes of employees and potential job applicants.33 People, at least ethical ones, want to work for companies that share their commitment to integrity, honesty, and legally and socially appropriate actions. A company's ethical integrity is influenced by a range of factors. It starts with setting clear expectations with employees when they are initially hired. It then requires holding leaders and employees accountable for ethically appropriate behavior. How people act should be as important as what they achieve. The company should also have methods and safeguards so employees can report ethical concerns without fear of retribution.iii A common characteristic of ethical companies is the willingness of employees and leaders to openly discuss topics associated with ethical issues.34 Experience measurement technology can help promote ethical behavior by providing a forum for employees to safely raise ethical concerns and questions. Talent management technology can also be used to ensure ethical behavior is considered when evaluating the performance of employees, particularly those in leadership roles.

Maintaining corporate ethics becomes increasingly difficult as companies grow. The CEO of a large global company told me his biggest concern was that in a company their size someone somewhere was inevitably doing something they should not be doing. He said it was both impossible and improper to try to monitor every employee's behavior around the world, which was why the company placed a lot of emphasis on managing employees in a way that would make unethical behaviors easier to spot.

Building Socially Responsible Cultures: Valuing the Well-being of Employees and Their Communities

The concept of corporate social responsibility refers to organizations supporting the needs and welfare of the communities where they operate.35 Examples include actions to improve social equity, health and well-being, economic development, and environmental sustainability. People want to work for companies that support their communities and social beliefs. Building socially responsible cultures is associated with higher levels of employee commitment and greater applicant attraction.36 Socially responsible cultures take a variety of forms. Companies may focus on issues associated with products and services they sell or the customer communities they support. Examples include supporting local businesses, promoting children's sports, or improving parks in local communities. There are also broad socially responsible objectives that are frequently emphasized by companies given their global importance. Four of the most important are creating inclusive and diverse workforces, supporting remote work models, improving employee health and well-being, and building environmentally sustainable work practices. Remote work is not usually viewed as a socially responsible practice but is included because of its impact on employment opportunities, employee well-being, and environmental sustainability.

Creating Inclusive and Diverse Workforces

Companies have been working to create more diverse and inclusive cultures for decades. This work has taught us several things. First, there is financial value in creating fair, equitable, and inclusive organizations.37 Second, there is no simple fix to create diverse workforces and build inclusive cultures. Despite years of effort, companies still struggle to achieve demographic equity, diversity, and inclusion. Diversity programs are frequently successful but rarely successful enough.38 Third, two aspects of organizational culture affect workforce diversity and inclusion: meritocracy and multiculturalism.39 Meritocracy focuses on ensuring equitable, unbiased treatment of employees. Multiculturalism emphasizes acknowledging, respecting, and valuing different groups. Multiculturalism is about how we socially interact, and meritocracy is about how we make decisions. Making a difference in diversity and inclusion requires both.

Schematic illustration of decisions and actions that influence diversity and inclusion.

FIGURE 8.1 Decisions and actions that influence diversity and inclusion.

Meritocracy is about reducing bias in decisions associated with individual characteristics that are irrelevant to work performance, for example, assuming someone is more or less qualified for a job based on their perceived gender or ethnic characteristics associated with their first or last name.40 The best way to create meritocracy is to build structured processes that base talent decisions on clearly defined, job-relevant criteria. Creating diverse workforces requires reducing bias in decision-making at every step of the employment life cycle starting with job design and continuing through recruiting, selecting, managing, rewarding, developing, and promoting employees (see Figure 8.1). This is because bias at one step can create bias in others. For example, bias in leadership promotion processes will decrease diversity among senior leaders. Lack of diversity of senior leaders will decrease attraction of diverse candidates, which will lead to fewer diverse employees. And fewer diverse employees will ultimately decrease the number of diverse leaders. It is not enough to eliminate bias at one area. Companies must root out bias everywhere that it occurs.

Multiculturalism is about creating inclusive cultures. The experience of work can be very different for someone with a different demographic and cultural background compared to their colleagues. People who do not belong to the majority demographic group in a company often feel less comfortable and less accepted. Promoting multicultural awareness helps overcome this problem by creating inclusive cultures where differences in backgrounds, values, and behavioral norms are recognized, accepted, and even celebrated. Multiculturalism promotes diversity and inclusion by distinguishing between organizational norms that are critical to supporting the company's strategy and mission versus cultural norms where diversity of thought and expression is expected, encouraged, and welcomed. An example is the shift in attitudes toward the presence of children in the workplace. In the past, many company cultures conveyed an implicit assumption that children should not “interfere” with work—that having childcare responsibilities made a person less productive. This created significant bias against women who tend to have primary childcare responsibility in most societies.41 In recent years there has been a significant change in this attitude. Companies celebrate and support employees in taking care of their children and communicate that it is possible to be both a highly productive employee and a highly involved parent. Solving a problem as complex as diversity and inclusion requires both multiculturalism and meritocracy. Technology influences meritocracy by shaping how companies recruit, select, manage, develop, and compensate employees. It also shapes multiculturalism by influencing how employees communicate and interact with each other. The design and use of technology can help in creating more meritocratic and multicultural organizations. Examples include solutions that help companies find candidates from different demographic backgrounds, reduce bias in the methods companies used to recruit and select candidates, help create a greater sense of belonging by bringing together employees based on common interests, or that automatically identify patterns in staffing or compensation data that suggest the presence of bias.

Supporting Remote Work Models

The 2020 pandemic forced companies to adopt remote work to protect employee health. This shift challenged long-standing assumptions about work including the belief that employees need to be in an office to do a good job. Supporting remote work opens up career opportunities for employees who historically were prevented from working due to family care obligations, physical disabilities, or economic constraints that make traveling to the workplace every day difficult if not impossible.42 Companies that support remote work can recruit from talent pools less constrained by candidates' geographic location or ability to commute. Companies that discourage remote work will also find it increasingly difficult to attract and retain talent.43

Employees' desire for remote work varies based on their home office environment, commute time, job type, manager relationships, and individual personalities. But there are two things all employees want. First, they want flexibility to determine when they need to come to the office given their job, life situation, and personal preferences. Second, they want transparency in how use of remote work will affect their career at the company. Remote work does not mean working from anywhere at any time. Effective remote work cultures clarify when employees are expected to be working and not working. Employees should know when they are expected to be available for meetings and requests but should also feel comfortable turning off their computers and phones and detaching from work. Remote workers usually put in longer hours than in-office employees, and the risk of burnout among remote workers is even higher if companies do not encourage workers to set boundaries and take breaks.44

Part of effective remote work involves periodically meeting in person. Remote work is often referred to as hybrid work because it involves a mixture of remote and onsite work. Remote work strategies should define when and why people are expected to get together. There are many reasons for in-person meetings, including new hire onboarding, team and relationship building, and problem-solving sessions that require collaboration over multiple hours or days. At the same time, companies should not require people to be together without having a clear purpose for getting together. Meeting in person comes with a cost in terms of travel and meeting spaces that require money and time from both employees and the organization.

Effective talent management practices are particularly critical to remote work. Remote workers tend to be more productive and engaged than in-office employees when they are well managed, but more stressed when their manager is not effective.45 Onsite work environments are more forgiving toward poor managerial skills, perhaps because employees can use visual cues to guess what their manager is thinking. By contrast, remote workers need ongoing communication about goals, clarity on how their contributions will be evaluated, and more intentional activities to help them advance their careers. It is also important to ensure remote workers are not punished for having less face time with leaders in an office than in-person workers.

We do not know how the move to remote work will change the future of organizations, cities, labor markets, and societies, but there are things we can be certain of. First, remote work will be much more common. There is no value in returning to a past characterized by unprecedented levels of commuter traffic.46 Second, companies have an opportunity to rethink the nature of work to create the world we want instead of accepting the world as it was. Technology plays a central role in creating an engaging and inclusive remote world of work, but this is not just about remote work technology. It is also about using technology to support and enhance the value of in-person meetings that bring together typically remote employees.

Improving Employee Health and Well-being

Work is a major source of stress for many employees.47 This stress damages employee well-being, hurts performance, and increases absenteeism and health care expenses.48 Stressed out employees are unhealthy employees, and unhealthy employees are not fully productive employees.49 They also are unhappy employees who are more likely to quit. If companies value the happiness, well-being, and retention of employees, then they need to create healthier work environments. The term healthy workplace is often associated with things such as safe work practices, ergonomically correct office furniture, nutritious cafeteria food, and on-site fitness centers. Although these are valuable, they are not the primary factors that affect employee well-being in most jobs. What makes work unhealthy in most jobs are things that cause mental and physical stress:

  • Poor quality relationships with managers or coworkers
  • Working with customers or coworkers who are upset, angry, or abusive
  • Concerns over employment security and access to career opportunities
  • Financial worries and work-family conflict
  • Working long and/or irregular hours
  • Intrusion of work activities (e.g., e-mails and phone calls) into off-work hours
  • Lacking clear job goals and role ambiguity
  • Performing monotonous and highly repetitive tasks
  • Being assigned tasks or goals that seem unattainable given existing resources and time
  • Frequent organizational restructuring and job reassignments

Supporting employee well-being starts with designing jobs in a way that lessens the physical and mental stress placed on employees, for example, giving employees regular schedules that promote effective sleep patterns, ensuring they have clear achievable goals, and providing interesting work assignments. Actively listening and working to address employee concerns also decreases stress levels.50 Companies can also provide employees with self-management technology solutions to help cope with work-related stress in a healthy manner. Examples include solutions that help employees improve sleep hygiene or that guide employees in the use of cognitive behavioral therapy techniques to reduce the impact stressful situations have on well-being. Perhaps most important of all is ensuring managers and leaders in the organization show empathy, sensitivity, and support toward the stresses employees face in their roles.51

Building Environmentally Sustainable Work Practices

The impact of climate change and carbon emissions has become a major social concern around the world. As a result, how companies approach environmental sustainability is having a growing impact on their ability to attract and retain talent.52 Most discussions of sustainability emphasize moving toward more sustainable manufacturing and transportation methods. But employee actions also significantly influence a company's overall environmental impact. Employees are often the main source of carbon emissions in less capital-intensive industries such as technology and professional services. The following are some ways employee behavior affects environmental sustainability:

  • Commuting. Commuting is a major source of greenhouse gas emission. The recent shift to remote work models presents companies with an opportunity to rethink the use of office space and its impact on commuting. Companies can also provide incentives that encourage employees to commute using mass transit and other more environmentally sustainable methods.
  • Travel. Business trips, particularly those involving air travel, represent a significant source of carbon emissions. Norms and assumptions about business travel influence whether employees conduct face-to-face meetings or use remote technology. When employees do need to travel, they should be encouraged to use more sustainable options such as trains instead of planes or electric instead of combustion cars.
  • Workplace habits. Companies can encourage habits and patterns of behavior that decrease energy consumption and waste. This includes actions as simple as turning off lights and computers when not in use or using reusable cups and utensils instead of disposable ones.
  • Purchasing decisions. Employees can be encouraged to consider the environmental impact of the vendors they employ, whether it is staying at more environmentally conscious hotel chains or procuring supplies from more environmentally sensitive providers.
  • Job locations. Deciding where to locate offices and plants has a significant impact on the environment. Choosing locations that minimize commuting times, allow for reuse of existing facilities, and decrease use of resources to transport materials and products can reduce a company's overall environmental footprint.

Creating a more environmentally sustainable workforce requires leadership role modeling combined with employee awareness and enablement. For example, the best way to get employees to choose train travel over air travel is to have leaders visibly opt for train tickets instead of plane tickets. Most employees would probably think twice before paying to fly on a jet when their CEO took a more environmentally friendly train for the same trip. Leaders should also track and regularly discuss company sustainability goals and recognize employees for making progress against them. Employees can be educated on ways to be more sustainable and be given data and recognition that call attention to their environmental impact. They can also be given tools to support more environmentally sustainable actions. This can take a variety of forms ranging from putting reusable utensils in the cafeteria to using technology that encourages employees to purchase materials from more environmentally sustainable providers. Changing the culture of a company to encourage sustainable decisions and behaviors is one of the least expensive and most impactful ways to increase environmental sustainability. It does not require redesigning manufacturing systems, retooling processing plants, or shifting supply lines. It just requires changing the employee experience in a way that gets to act differently in the future from how they acted in the past.

Notes

  1. i The term demographics refers to non-job-relevant employee characteristics that are associated with bias and discrimination at work. This includes race, ethnicity, gender and gender identity, age, sexual orientation, health, and disability status.
  2. ii A safety expert told me an employee once continued to work with a broken leg rather than report it and lose the bonus the company was offering for no accidents on the work-site.
  3. iii I experienced this at a previous company in my career. People had misrepresented the effectiveness of a solution being sold to customers. After privately sharing my concerns with our corporate counsel, I was abruptly moved from a leadership role into a minor position. I soon left the company, which was subsequently sued based on topics related to the concerns I had raised. The company no longer exists.
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