In a new 3-part blog series, we look at the current workplace culture crisis, and see how leaders must prioritize organizational resilience to foster sustainable, positive change
We’re in a workplace culture crisis. After years of hardship, many of us in leadership are numb to the current situation, leaving us thinking, “It is what it is.” However, if you’re different — if you’re someone who’s looking to improve your workplace culture, it may feel like you’re pushing a boulder uphill.
It also goes without saying that your employees aren’t thriving either. We’ve never seen more dissatisfied employees than right now. In fact, employee happiness is at a 4-year low, according to SHRM, an HR management association. And there’s many contributing factors, including inflation, inconsistent return-to-office policies, layoffs, ever-evolving regulatory requirements, and ever-increasing employee expectations.
However, it’s not all doom and gloom. There is hope.
In this first installment of a new 3-part blog series, Organizational Resilience, we will discuss the problem we’re currently facing and the possible solution. In future installments, we will look at the process to create organizational resilience in your company, and the results you can expect when your company achieves that goal.
Overall, we look at this as a sort of 3-part guide of what leaders can do to evoke sustainable, positive change in their organizations.
What is organizational resilience?
Organizational resilience is an organization’s ability to anticipate and bounce back from challenges. It involves leadership taking intentional action to better their company while simultaneously maintaining daily operations. Key components of this process include conducting inclusive planning, managing vulnerability, engaging in open communication, and demonstrating agility, adaptability, and a focus on employee (and management) well-being, even during hardships.
Organizational resilience isn’t innate; leaders must cultivate and invested in it, starting with their willingness to break the mold. Companies like Patagonia, Apple, and Starbucks demonstrate this, but it’s rare in the tax & accounting and legal fields — at least until now.
Leaders often are called upon to be both conscious and courageous. They must think intentionally and execute strategically. This involves having both a broad and detailed perspective, taking tactical actions, and anticipating employee needs. They must also be willing to fail, learn, and try again.
Prioritizing organizational resilience was once optional, but it’s now a necessity for long-term survival.
The quick fix isn’t working anymore
Despite good intentions, many organizations’ efforts to improve work culture haven’t delivered the desired results. Post-COVID, initiatives like Health Week and Mental Health Awareness Month have seen low engagement. And even with a monthly gym stipend and free Friday lunches, about 40% of the average workforce remains burned out.
It’s not just employees who suffer, however. Many organizations also are feeling the strain, experiencing increased turnover and absenteeism, decreased employee engagement and satisfaction, rising healthcare costs, and declining revenue. These issues are costing companies hundreds of thousands of dollars annually and damaging their reputations as an employer of choice.
Despite investing thousands of hours and significant resources to address the problem, it still feels insufficient. The reality is, it’s not enough. If it were, so many companies wouldn’t be struggling, and organizational leaders wouldn’t be needing to read this.
Transactional solutions vs. transformational solutions
In both the accounting and legal industries, management’s typical response to employee burnout and reduced productivity is by deploying transactional solutions — short-term, quick fixes like yoga classes, one-off workshops, appreciation awards, or mini-spot bonuses. These solutions are often presented haphazardly, with the hope that one will stick.
Employees notice, and these half-hearted attempts can feel desperate and insincere. Health Week is irrelevant when some employees are struggling with chronic insomnia. Coffee Chats with Leadership hold no appeal when employees are working nonstop. They’d rather use the hour for anything else than an uncomfortable “How’s everyone hanging?” conversation from HR.
While leadership may see these efforts as a brief boost in morale, it quickly fades. Time and money are spent, but no real progress is made. And management will never achieve long-term return on investment (ROI) with these kinds of transactional solutions. Offering access to a meditation app or assigning someone to lead a well-being initiative off the side of their desk won’t stop employee burnout.
Our primary job as leaders is to create an environment in which there is connection and a common mission.
“An app cannot solve the burnout problem because it’s not addressing the root cause of burnout,” says Olga Blyweiss, a partner at Armanino, a business consulting firm. “Solving for burnout needs to be a slow and steady race in which we need long-term fixes.”
To foster organizational resilience, leaders need to go beyond transactional solutions and invest instead in transformational solutions. These are strategic and intentional initiatives that are focused on long-term impact with immediate benefits. Transformational solutions build a culture of connection and understanding, which is essential to produce lasting change. A transformational approach, rather than quick fixes, is key to improving employee morale and reducing turnover.
“Our primary job as leaders is to create an environment in which there is connection and a common mission,” says Blyweiss, adding that it must be genuine. “I connect with my team to make sure they know that they are more than just a number — they are a part of our organization and are an integral part of it.”
Companies that embrace organizational resilience through transformational solutions often see positive returns, with higher retention rates, a stronger reputation, and long-term profitability.
Where to from here?
At this point, you may be beginning to understand where the work starts: Assessing your company’s current landscape, repurposing your budget for transformational solutions, and anticipating what your employees need in order to succeed.
While you may feel somewhat defeated, it’s important to recognize the effort you’ve already put into enacting transactional solutions. And although they are not the answer, the intention behind them is appreciated.
If leaders want more for their company but are struggling to find the time to create and sustain initiatives that support organizational resilience, they should remember — they are not meant to do it alone. Attempting to tackle this process alone will limit its impact for both leadership and those employees who would benefit.
There’s a Chinese proverb: “The best time to plant a tree was 20 years ago. The second-best time is now.” If a company didn’t build organizational resilience years ago, the second-best time to start is today.
Here’s are some simple steps organizations can take now:
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- Assemble a committee — An organization should try to recruit at least three passionate leaders to form a temporary committee that involves people from cross-functional roles for balanced representation.
- Identify a budget — If there’s no budget for 2024, organizations should start planning for 2025. While low-cost options exist, often those are not sustainable. Long-term organizational resilience requires a dedicated, on-going budget.
- Ask honest questions and take notes — What has the organization done up until now? What do its employees need over the next 6 to 12 months? How far is management willing to go to make organizational resilience a cultural norm?
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In the next installment of our 3-part Organizational Resilience series, we will discuss the process to create organizational resilience within your company.
