A Message from Our CEO – March 2023
Dear Friends,
In 2003 I met Warren Buffett in a once-in-a-lifetime opportunity in Omaha as part of our Gallup MBA class. For two hours, our small class of 15 asked him questions and soaked up his insightful ramblings on work, the economy, capitalism, and the meaning of life.
I think of that day when considering the head spinning number of trends and changes in today’s business climate. How do we ground ourselves as leaders and managers in this weird post-2020 work environment? We have quiet quitting, productivity paranoia, and hush trips. The latest is Bare Minimum Mondays—adopted by Gen Z to ease into the work week after “Sunday Scaries”.
I’ll never forget one line Buffett quipped about change, trends and forecasting. After taking a swig of his Cherry Coke he said: “Good leaders know that the rearview mirror is always clearer than the windshield. Stick with great leaders and great managers. Don’t get thrown off by distracting trends.”
Sure enough, today’s work trends are very real, but they are a distraction from what makes an organization a great organization, despite the bugs on the windshield. Great leaders inspire and motivate around a common goal, set a clear vision, build a strong culture of trust, and create an environment that allows peoples’ talent to flourish. These are foundational principles whether your people work from an office or remotely, Gen Z, Millennial or Boomer (oh, and even Gen X).
The trends and changes will start to come faster, so buckle in with your best and brightest.
Thank. You. Warren (Buffett).
Warren
March 2023
Trust in the workplace is essential for effective collaboration and teamwork, but recent years have brought about an erosion in this crucial component of a successful workplace among employees and bosses alike. Open and honest communication, consistency, and accountability are a great starting point for building a culture of trust, one that is sure to lead to increased productivity and employee satisfaction. (WorkLife)
The rise of remote work has led to recruiters placing a greater emphasis on competence over warmth when making hiring decisions. While technical skills and abilities may be easier to virtually evaluate than interpersonal qualities, hiring managers hoping to build out a cohesive and supportive dynamic should still keep an eye on personability when building out a remote team. (Personality and Individual Differences)
As those responsible for ensuring employee engagement, supporting a healthy work-life balance, and enforcing unpopular mandates, many middle managers are burned out due to increasing responsibilities and stressors. However, organizations often fail to recognize that these leaders are employees too – any focus on employee experience should ideally be extended to higher levels of the org chart. (Fortune)
A recent meta study has found that positive leadership tactics are more important to employees’ mental health than any number of wellness programs and resources. Companies can promote good management by providing training and support to managers, creating clear policies and procedures, and encouraging open communication and feedback. (Scientific American)
With the rise of AI tech comes the "Turing Trap," which occurs when businesses rely too heavily on artificial intelligence and lose sight of the human element in decision-making. To avoid issues like these, managers should attempt to involve humans in the design and implementation of AI systems, regularly assess the impact of AI on business outcomes, and prioritize the “human element” in experiences. (WorkLife)
When it comes to finances, Gen Z is by far the most tight-lipped generation – this reluctance may stem from feelings of shame and embarrassment, or just from a lack of financial literacy. Employers can help their younger workers feel more comfortable and supported by offering resources like financial planning services, workshops, or access to financial advisors as part of their employee benefits package. (Intuit)
In a January survey by job site Monster, fully 37% of workers admitted to having more than one full-time job, and among those who only work one full-time job, most (57%) said they’d consider adding another. Whether it’s due to financial necessity or personal fulfillment, overemployment is here – and while remote work is making it more feasible than ever, bosses should keep an eye out for signs of burnout and exhaustion. (Yahoo)
On “Bare Minimum Mondays,” employees aim to do the absolute minimum amount of work required in order to ease into the work week. While advocates argue that the trend can help employees avoid burnout and increase their overall productivity throughout the week, critics caution that it may lead to a lack of motivation and a culture of complacency in the workplace. (Fortune)
A Message from Our CEO – February 2023
Dear Friends,
In this edition of C-Suite Newswire, we are leading with two articles on ChatGPT, the most unmemorable name ever for an AI revolutionary movement. Couldn’t the geniuses in marketing think of a better name? Regardless, the uptake on this clever little droid is unprecedented. In a few short weeks, 30% of office workers are using it to write proposals, develop apps, write software, and write their kid’s term paper. It’s freaking out Meta and Google, and it’s always fun to watch industry titans lose their balance. So, how will this change you and your workplace?
It turns out not that much. Although the speed of generating code and content will accelerate, you will not get paid more. And if you are feeling overworked now, you will feel even more so after the AI revolution. News Alert: Better technology will not make you love your job more. Have you heard a saying that in a workplace, “It’s the same circus, only the clowns change”?
The strategy for leaders right now is to get their culture right: Establish clear goals, foster an environment of collaboration, recognize the challenges that your employees face day-to-day, and encourage a culture of caring and learning where people can take risks without getting dinged.
Ironically, the one company that may stand to benefit from ChatGPT is Microsoft. CEO Satya Nadella has gained the trust of ChatGPT’s founder Sam Altman. And they’ve invested $10 billion in the company. If you follow Nadella’s work, his operating model is something called MODEL-COACH-CARE. At the center is Nadella’s desire to encourage a “coaching culture”, using empathy as a tool to drive innovation. I’m betting on culture, not an AI bot.
If Peter Drucker were around, he might say… “Culture eats ChatGPT for lunch.”
AI: Proceed. With. Caution.
Warren
February 2023
Despite only launching a couple of months ago, ChatGPT has already been used by almost 30% of professionals to assist in their jobs. Marketers and advertisers have used the program the most at work (37%), followed closely by tech workers (35%) – some of the most commonly reported uses of ChatGPT are to create cover letters, write SEO descriptions, and draft punchier reports. (Fishbowl)
Nearly 70% of professionals who have used AI tools for work are doing so without their boss’ knowledge. While there are still some legitimate concerns surrounding these technologies, encouraging employees to be open about the use of AI is crucial for advising on proper usage and most effectively leveraging the potential of these tools. (Fishbowl)
Working from home saved workers a daily average of 72 minutes in commute time in 2021 and 2022, with 40% of workers putting that saved time right back into working more (more than the share of workers who put their time towards leisure activities or caregiving). The data here is clear – the time savings of remote work are returned to both employees and employers. (National Bureau of Economic Research)
The latest workplace trend, “resenteeism,” refers to employees who are present at work but are not fully engaged or productive due to anger, frustration, or dissatisfaction. Identifying and reengaging a resentful worker is crucial because (more so than previous trends like "quiet quitting”), these employees can quickly and negatively impact a workplace’s morale and create a toxic work environment. (Fortune)
The results of an international 32-hour work week experiment are in, and, of the organizations who filled out a final report, none are leaning against or not planning on continuing their 4 day week. The results of the trial were overwhelmingly positive: Companies reported increased revenue and improved employee health and well-being, and virtually every employee (97%) expressed a desire to continue the program. (4 Day Week Global)
Amid waves of layoffs in the tech industry, many remote workers are now struggling with job loss coupled with a lack of social support and connection. While downsizing is never easy, the process can be particularly difficult and chaotic for those working from home, and employers should be cognizant of the unique impact of layoffs on these employees. (The New York Times)
After a man was fired from a Paris consultancy firm for refusing to participate in after-work drinks and team-building activities, a French court has ruled that companies cannot fire workers for failing to be “fun.” While building a friendly and engaging company culture is important, employers should also keep work-life boundaries in mind – what the French are now calling, “the right not to be fun at work.” (The New Yorker)
Proper home office equipment and tech is crucial for remote workers, as issues with work environment and tools can lead to increased stress, fatigue, and decreased productivity. Not only are workers who have access to necessary equipment and technology more productive, but investing in WFH offices was also correlated with increased job satisfaction, reduced turnover, and improved employee morale. (Logitech)
A Message from Our CEO – January 2023
Dear Friends,
The holidays were a blur. I lose track of the days between Christmas and New Year’s when the sun is low and sparing with its light. But by MLK, we snap back into the groove. Back to work. Work: We hate it, and we love it. It confounds us, and it defines us. We spend more time working during the day than anything else. And now we are learning that the function of work is not just to make money, but to connect us in social interaction. America’s addiction to social media and Netflix leaves less time socializing with friends and neighbors. Civic attachment has evaporated, and we attend church less often. “Work” has become our proxy social anchor point.
The workplace is an important generator of social capital and has spillover effects for personal, family, and community life, according to the American Perspective Survey. This is our first feature article in the NewsWire. Gallup introduced the controversial notion that people are more engaged at work when they have a best friend at work. We are social creatures. We were born to connect.
Yet too few companies create a psychologically safe culture that encourages deeper social interaction. There are exceptions. This month we launch a new program with the Fairfax County Health Department around building social capital to promote employee resilience and wellbeing. If organizations on the front lines of a global health crisis can do it, so can you. The key is to be intentional about improving your social capital by strengthening intrapersonal relationships. I like to call it, “going deep, fast”.
Go deep or go home.
Get. To. Work.
Warren
January 2023
As social and civic life continues to dwindle, the workplace has emerged as a crucial interpersonal outlet for millions of Americans, with more than half saying that they have met a close friend through their own or their spouse’s work. Acknowledging this expanded role of the workplace in both the professional and personal lives of Americans is key to fostering employee well-being, an engaged workforce, and a healthy corporate culture. (The Survey Center on American Life)
While most types of unethical workplace behavior declined (or saw vanishingly small increases) during the pandemic, reports of bullying jumped a startling 13 points. Remote work could be a driving factor here – harmonious coworker relationships can be more difficult to cultivate remotely, and employees may feel isolated or ostracized in a situation where leadership does not consciously foster an inclusive environment. (Ethisphere)
Gen Z is the age group least likely to report misbehavior in the workplace, with nearly 40% saying that they did not report observed misconduct (compared to 31.8% of Millennials and 27.6% of both Xers and Boomers).This reluctance to report misbehavior is not due to apathy or carelessness, but rather because these younger workers unfortunately have the least confidence in their employer’s anti-retaliation policies. (Ethisphere)
Ever since computers became a fixture of the white collar workplace, younger employees have been seen as the most tech savvy – first Xers, then Millennials – but this pattern may no longer hold true for Gen Z. While the newest hires are more accustomed to digital environments and social media platforms, they lack the experience with basic computing tasks and tools that previous generations grew up with. (WorkLife)
In 2022, fully 44% of workers ages 18-34 reported having spent more than three years with their current employer. With the exception of a temporary increase during the Great Recession, this number has changed very little since 1983 – over the last four decades, an average 43% of younger workers reported the same three-plus year job tenure. (Pew Research)
While critics of corporate monitoring software (accurately) claim that these systems damage employee morale and initiative, the accuracy of “bossware” is also increasingly being called into question. The software can track mouse jiggles or take snapshots from time to time, however when it comes to measuring productivity, there is simply no way for a program to take into account valuable, non-digital work. (Fast Company)
“The Phone Lady” consultancy has found a market for helping younger workers overcome their “phone phobia,” charging nearly $500 an hour for the service. Older generations may find the premise baffling, but founder Mary Jane Copps claims that she is meeting a very real need: “[Younger generations] have never had the skills given to them…[they] were never taught anything about talking on the phone, and people have removed phones from their homes." (Business Insider)
Crissie Hoskins, a creative executive with a decade-long tenure, makes a compelling case for paid, corporate sabbaticals after recently testing out her company’s newest perk. Calls for improved work-life balance amidst a tight labor market have led many employers to implement policies aimed at protecting workers from burnout and improving retention, particularly among valuable long-term employees. (Business Insider)
A Message from Our CEO – December 2022
Dear Friends,
Buying Twitter was a huge lapse in judgment. Musk is a savant that forges new markets (bravo on Tesla), but his big Asperger brain is no match for the nuances of public discourse in an overheated political environment. He won’t be able to engineer his way out of this one.
You all know that I look at things from a generational lens and this is clearly a case of a scorched-earth CEO GenXer trying to bully his way in a “be nice” Millennial tech world. As the rest of the work world is migrating to emotional safety and safe spaces, Musk motto is "the beatings will stop when morale improves". So, check out our first piece from the Guardian on Musk’s mismatch.
Equally compelling is our next piece from Vox that tells us layoffs are historically low. Employers are realizing it is just too expensive to hire new people so they are getting into the retention game.
And finally, in Millennials news, there is an Adderall shortage—something you would know if you were taking Adderall and paying attention.
R.I.P. Twitter,
Warren
December 2022
Elon Musk’s recent Twitter takeover and troubling behavior towards employees has captured the attention of the business world. One organizational development professional may have said it best in a recent op-ed: “Good leaders don’t have to email employees to tell them that they are expected to work hard. Great employees will work hard and be loyal when a healthy environment exists, where they are self-motivated and feel safe.” (The Guardian)
Despite a looming recession, layoffs were near historic lows in October, with employers choosing to instead cut office perks, cancel software subscriptions, implement hiring freezes – and even do away with offices altogether. Post-pandemic, many organizations are realizing that it’s easier to do pretty much anything (including going fully remote) than it is to spend years hiring and training replacements for workers that are let go. (Vox)
Kastle Systems Inc., the building security company who created the “back-to-work barometer” early in the pandemic, reported a post-Labor Day spike in office occupancy, with the national average reaching a post-COVID high of 47.5%. Since then however, the numbers have dipped once again, leaving researchers and executives to wonder when office occupancy rates will stabilize and finally reveal “the new normal.” (Bloomberg)
Workers’ financial stress is costing their companies too, as these employees are more likely to skip work, lose motivation, have interpersonal issues, or even quit their jobs. Nearly three-quarters of employees admit to devoting part of their workdays to thinking about or handling money problems, and 46% of those surveyed even acknowledge that it has taken a toll on the quality of their work. (Financial Post)
Hybrid arrangements and autonomous, flexible work options are popular among employees, but many middle managers are struggling to lead their teams through the transition. This year, these executives reported 40% more work-related stress and anxiety and 15% less job satisfaction than last year, with those at large organizations showing the lowest scores. (The BBC)
A nationwide Adderall shortage has become a growing concern in the workplace, as the drug is used not only by individuals with ADHD, but also by those who simply want help managing stress, increasing concentration and focus, and improving their productivity at work. Millennials, who saw the most dramatic spike in both ADHD diagnoses and Adderall prescriptions during the pandemic, have been hit particularly hard. (WorkLife)
Nearly 1/5 of people who have been infected with COVID currently have some form of Long COVID, a dramatic statistic that could shed light on the large number of Americans now reporting a disabling health condition. While conditions related to Long COVID (such as brain fog) may reduce productivity temporarily, managers should keep in mind the many accommodations to help these employees remain engaged at work. (Federal Reserve Bank of New York)
AMC has recently partnered with Zoom to turn certain movie theater locations into large video conferencing spaces, complete with food and drinks, a professional concierge, and space for 75 to 150 people. Both partners believe that this offering will better allow decentralized workforces to bring people from different markets together, in another sign of how common hybrid and remote work options have become. (The Verge)
A Message from Our CEO – November 2022
Dear Friends,
I hate election day. I hate it so much. I’ve made a concerted effort to stay clear of election “news” over the past two weeks. And I’m happy to say that this strategy has lowered my stress level and improved my mental health. I’d highly recommend it. Stress and mental health in the workplace have been surprisingly big topics since the pandemic, and a new study by the American Psychological Center says that an astounding 81% of employees are looking for employers that will support their mental health. When I was rubbing my temples in my cubicle in the early 90’s, the idea that my employer would pay attention to my mental health was creepy. I didn’t want my employer near my brain. Eww. Times have changed, and mental health services have implications for employers in maintaining engagement, productivity and recruitment.
So what is causing all this stress? Aside from the world ending, there is one area that is getting attention: Workers’ frustration with the number of apps they must deal with. The average company has 89 different apps, up from 58 in 2015. Think about it—you are collaborating on a Word doc on Google drive using the barnacle app PollEverywhere that eventually gets stored on DropBox. But your co-worker/collaborator uses Windows 365. So, you have to use that too. You keep getting annoying Slack chat dings while you need to fill out your expense report on Salesforce and plan your next month on Monday.com. No wonder employees are burned out. But don’t stop there — another driver of employee burnout is the vast number of meeting, where workers are spending one-third of their day. Meetings are kicking their butts. Read about it all below. Fascinating.
Doing consulting on workplace issues does not get boring.
Get. Well. Soon.
Warren
November 2022
Workers are switching between more apps and software than ever, and the sheer number of programs is pushing some employees towards burnout. Companies deployed 89 different apps on average last year, up from 58 in 2015 (at large employers, that figure is as high as 187), and reports show that many exiting workers are explicitly citing frustrations with technology as a reason for quitting. (Bloomberg)
A new remote work phenomenon has taken hold: “Productivity paranoia,” where leaders fear that productivity is falling due to employees not working when WFH (even though most activity metrics have increased amidst remote work). Managers need to pivot from worrying about whether employees are working enough, to helping them prioritize their workloads and focus on the tasks that are most important. (The Wall Street Journal)
The gap in starting salaries between bachelor’s and master’s degree holders has shrunk to the smallest on record, with master’s degrees now conferring a 22.5% premium, down from 31.9% in 2016. The growth in alternative post-secondary certifications, coupled with a tight labor market in which many companies have reduced their education requirements, have gradually eroded demand for master’s degree holders. (Bloomberg)
Studies show that professionals spend over one-third of their working hours in meetings and, despite employees saying they cause burnout, there are no signs that this figure is on the decline. Rethinking what percentage of the work day is dedicated to meetings is long overdue, particularly with many meetings taking place over video call. (Otter.ai)
Among both job seekers and employers, the demand for fully remote roles seems to have declined precipitously from August into September. Whether this is the start of a seasonal trend (an annual end-of-summer transition back into the office), or a reversal of a long-term shift towards remote work remains to be seen; in either case, managers and executives should continue offering flexibility and options when it comes to talent attraction and retention. (Flexa Careers)
Fully 81% of workers report that they will be looking for workplaces that support mental health in the future, a key insight for employers considering whether or not to implement new wellness initiatives. Supporting employees’ health, wellness, and work-life balance isn’t only crucial for maintaining engagement and productivity, these benefits can also make-or-break hiring and recruitment campaigns, particularly during a historically tight labor market. (American Psychological Association)
Working in a second language seems to be becoming increasingly common as companies take advantage of remote work to hire more international talent. Managers looking to cultivate an international or multilingual workforce should understand the challenges that come with it, and work to both help bridge language gaps and ensure proper support for employees working in a non-native language. (Worklife)
College students expect to make $103,880 in their first job, but the average starting salary is actually only $55,260, a disconnect that hiring managers must contend with when negotiating offers with recent graduates. Recent inflationary pressures may be behind this dramatic growth in salary expectations – in 2019, the gap between average and expected starting salary was only around $10,000. (Clever)
A Message from Our CEO – October 2022
Dear Friends,
Last week I interviewed a few of my clients on the topic of hybrid work. I wanted to know, “how’s it going?” The answer depended entirely on the level of flexibility that a company gives their employees. For employers that give managers complete autonomy to figure out the right mix of in-office and out of office work, engagement levels are high, productivity has improved, and turnover rates have held steady or gone down. For those companies that have stricter rules on the number of “in-office” dates (a range from 2-days in-office to full-time), turnover is up, and engagement is down. The message is clear: the less restrictions, the happier the employees. Makes sense. But the big takeaway from my interviews was when employers give a reason for coming into the office, then it seems to work. In other words, are you making it worth their while? One of my clients pays for commuting and provides lunch. Another has organized team building activities. Another has such engaged employers, they actually want to go in the office!
We still have not figured all of this out. There’s more to learn, but there is always a fool-proof method to begin motivating your employees. As Walt Disney said about his customers, “find out what they want and give it to them.”
Autonomy. Beats. Autocracy.
Warren
October 2022
Some companies are turning to hybrid or remote work as a way to cut costs and offset an upcoming recession, with 82% of CFOs reporting that they see these arrangements as a way to lower expenses. While hybrid or remote work (and reducing office space) are important ways businesses can control spending, managers must ensure that these changes are made sustainably, keeping an eye on employee engagement and productivity in addition to the bottom line. (Worklife)
A new study estimates that employees who take a week off for COVID are 7% less likely to be working a year later, a phenomenon that has reduced the U.S. labor force by at least 500,000. Moreover, many of these workers who were absent due to COVID later worked fewer hours (if they still remained in the workforce at all), and had an 18% decrease in earnings. (National Bureau of Economic Research)
At the start of 2022, Xers and Boomers drove faster growth in resignations than their Gen Z and Millennial coworkers. While quit rates often tend to be highest among younger, less senior workers, record job openings and more financial flexibility appear to have opened the door for more older employees to explore career changes. (Visier)
Nearly 2 in 5 American college graduates regret their major, and for those with degrees in the humanities and arts, the share rises to just under 50%. As fewer and fewer students are graduating from liberal arts, managers should take note: Their accomplished new STEM hires may be in need of more support to refine their communications and soft skills. (The Washington Post)
Creating benefits plans that appeal to a wide variety of employees is a key way that companies can cater to a generationally diverse workforce. The top concerns for younger employees might include wellness programs, family leave and fertility benefits, and student loan aid, while older employees prioritize affordable health benefits, tax-advantaged savings plans, and job sharing programs. (World Economic Forum)
The share of US adults who said they took at least a week-long vacation in the prior year has risen by 13 percentage points since 2021, but the majority of workers are actually still working during their time off. Fully 60% of executives plan to check in with the office during vacation more than they did last year, 47% said they were reluctant to unplug due to staff shortages, and 15% said they were nervous about layoffs. (The Wall Street Journal)
Some workplace experts are concerned that remote managers who have entered leadership roles since the pandemic may be missing critical soft skills and office fundamentals that can only be acquired in person. While it’s true that there are some skill sets that only experience can hone, organizations that properly support remote workers should have no issue training both employees and managers alike. (WorkLife)
Despite coming under fire in recent years, unpaid internships still make up nearly half of all internship opportunities. State governments, nonprofit organizations, and professional programs in fields like social work, teaching, and journalism are particularly likely to require unpaid work, which can price lower income students out of these careers. (The Associated Press)
A Message from Our CEO – September 2022
Dear Friends,
Quiet Quitting has reached platinum level meme status, so what do you really need to know? First, this is a new name for an old problem. The difference is that Gen Z has a way of expressing it more explicitly with higher impact through TikTok and the social media industrial complex. They are uncovering something that has always been there. Many of your employees (54% according to Gallup), have checked out a long time ago—not because it is 2022 and not because they are Gen Z. They have checked out because they are not finding purpose in their work. They’re burned out. They’re on a treadmill. Life is harder now.
So how can leaders stop this miserable death march that is work? First, make sure that you have a way to actually measure your employees’ levels of attachment to work. You can’t manage what you don’t measure. There are good tools out there (and real scammy bad ones too) so do your research and get a measurement system. Shameless plug—we nailed this and have a great process for that, so call us if you want to know more. Second, prioritize and formalize Active Listening techniques in your company. Active listening is about listening with empathy and going a bit deeper. It is a next level conversation. Third, learn the Model-Coach-Care system pioneered by Satya Nadella at Microsoft. This program emphasizes key emotional intelligence skills managers need to coach their teams. The goal here is to re-energize the great potential of your employees. You are never going to lead them if you view them through their faults. Leadership is a process around aligning employees’ emotions around a common purpose. Make it personal, bring the purpose back, and stop the quitting.
Never. Never. Quit.
Warren
September 2022
“Quiet quitting” – a newly-coined term referring to pushback on hustle culture – continues to make headlines, but the trend is nothing new. The signs of quiet quitting are identical to those of employees who are “not engaged”; concerned managers should keep an eye out for detachment and burnout, particularly among their younger employees. (The Wall Street Journal)
According to a recently released study, companies that are underperforming are more likely to experience a decrease in racial and gender diversity rates on their boards. While these boards will deliberately seek out new expertise and new perspectives in the belief that it might rescue the organization, they also become less inclusive as executives unconsciously seek directors that have similar backgrounds. (Department of Management and Entrepreneurship, Imperial College London)
Having a best friend at work has become even more important to employee well-being since the start of the pandemic, but unfortunately, managers are facing significant challenges in supporting these connections. Currently, just 20% of employees report having a best friend at work – leaders hoping to promote friendships at work should start by modeling positive interactions and encouraging opportunities for casual communication. (Gallup)
The number of young Americans with apprenticeships has nearly doubled over the past decade, with these types of programs now being offered not just in the trades, but in health care, finance, and tech. Since the pandemic, the hot job market for youth without degrees has made the non-four-year-college career route seem more attractive (and these same drivers are pushing up college enrollment in two-year skilled trades programs as well). (Bloomberg)
More white-collar companies are implementing digital surveillance tools that assign workers “productivity scores,” using them to track activity and idle time around the clock. Managers beware: Any productivity gains from implementing these types of measures are likely temporary, but the resentment and distrust they’ll lead to among employees won’t be. (The New York Times)
While they might have a reputation for job-hopping and corporate risk-taking, Gen Z employees are actually gravitating towards larger, more established companies over smaller startups. Having come-of-age and entered the workforce at a time of unprecedented upheaval, Gen Z value stability and security in their careers and are even more risk-averse than cautious Millennials. (Glassdoor)
Another casualty of the pandemic seems to have been the “power lunch,” as high-end destinations popular with the office crowd lose ground to remote work and fast-casual chains. With people’s availability and location changing day-by-day, it’s more difficult to schedule in-person lunches, and many meetings are now being conducted over Zoom instead. (The New York Times)
Gallup’s retirement tracker shows the impact the pandemic had on the expected age of retirement, with the average age falling by two years in 2021. This drop isn't likely to last though, as it runs contrary to the longer term trend over the past three decades in which the average retirement age has risen from 57 to 61, and nonretirees’ target retirement age has risen from 60 to 66. (Gallup)
A Message from Our CEO – August 2022
Dear Friends,
I thought we would do a light piece in the lazy days of summer so I picked political partisanship. A new study suggests that executives are more likely to be Republican (68% this year compared to 65% in 2020), but what is notable in the research is the clustering of one party or another within organizations. The Dems are with Dems and the GOP hang together. Like-minded political affiliation may bring groups together, but groupthink hampers innovation. And generational divides are causing headaches for CEO’s as a younger, more socially-active generations is voting with their pocketbook. They are pushing companies on a whole range of social issues front and center, switching brands, and taking their friends with them.
Our second article from Fortune Magazine says Millennials’ #1 priority is equity and inclusion, while Boomers ranked equity and inclusion last. So what’s the lesson here? The generational shift in leadership is dawning and the priorities of the workplace today will look a lot different in the near future. I would pay a lot more attention to what Millennials want, both as employees and consumers. They are going to get their way one way or another. It's better to be ahead of the curve.
Generations. Do. Matter.
Warren
August 2022
From 2008 to 2020, corporate executives became more partisan, more Republican, and more geographically segregated along political leanings. These homogenous boardrooms aren’t necessarily more effective – in fact, researchers found that companies who lost executives with differing political leanings saw a steeper fall in stock returns than those who lost executives with similar views. (The Washington Post)
When it comes to remote work issues, inequalities surrounding remote and in-person options were ranked as most important by younger executives and least important by those aged 50 and up. Younger Xers and Millennials are most open to remote work and tend to prioritize equity and inclusion – older managers aren’t as convinced, instead ranking hybrid-work schedule coordination as their key remote work concern. (Fortune)
Despite a looming recession, the job market still seems strong with a nearly record low unemployment rate… But why? The biggest factors include rising digitization, last year’s stellar profits, and a labor shortage that (between pandemic stressors and Baby Boomer retirements) isn’t likely to go away any time soon. (WorkLife)
The struggle to hire and retain workers has changed how organizations see their CHRO (Chief Human Resource Officer), with 84% of CEOs now saying that they view their CHRO as a strategic advisor and member of the executive management team. Empowered CHROs are more likely to successfully expand progressive workforce strategies, reshape management structures, and implement other operational and strategic initiatives. (Worklife)
The share of parents who want to work remotely 3 to 5 days a week has increased by 2 percentage points just since February of this year – among mothers in particular, the desire for overall “location flexibility” has reached an all-time high of 83%. Flexible solutions are a great way to recruit and retain employees in general, but these policies have a particularly strong impact on working parents’, helping them stay engaged and avoid burnout. (Future Forum Pulse)
A record number of COVID-infected workers on sick leave (coupled with a continuing labor shortage and employees taking long-postponed vacations) has many bosses claiming that staffing is harder now than at any previous stage in the pandemic. Some executives claim that companies have since learned to operate with less staff, but forward-thinking managers would be well-advised to avoid stopgaps and focus on longer term solutions. (The Wall Street Journal)
Summer interns are headed to work eager to make a good first impression, but many are struggling because no one is in the office. Anecdotal stories among interns describe disappointment after a long commute or feeling lost as they spend time unsupervised – but unfortunately for young go-getters entering the post-COVID workforce, remote work isn’t going anywhere. (The New York Times)
Teen workers this summer have more options and higher pay than they’ve seen in decades, with employers desperate to fill open positions and some states even lowering the eligible working age. Falling college enrollments and a hot labor market are some of the biggest drivers of this trend, which is particularly good news for service industries that have been struggling to fill posts as consumers ramp up spending. (Bloomberg)
A Message from Our CEO – July 2022
Dear Friends,
Last month my son started working at a company headquartered in NYC. Alas, he is leaving Washington DC this weekend (hate to see him go) and moving to… Asheville, NC. Wait, what? He is one of the many professional Millennials leaving big cities to work remotely in smaller life-style-first cities like Asheville NC, Boise, ID and Des Moines, IA.
The ability to work remotely plus soaring rents, crime, and long commutes are driving Millennials away from the big cities. More than 40% of workers now work remotely, and the percentage is higher for young people. Companies are willing to be more flexible about where their employees work, particularly in tech, and there is a good reason for that. According to ADP Research Institute, two thirds of respondents said they would find a new job if required to return to the office full time. Employees have the upper hand now, but will that last? I don’t think so. Why? Because recession with job losses tilt the balance in favor of the employers. It always does. And if employers want people in the office, they will come. This is our first feature article from the Atlantic written by Derek Thompson. If this topic doesn’t float your boat, check out the new research by Gallup which shows that K-12 educators are in the profession with the highest burnout rate. Message to parents: Buy your teacher a cookie or something nice.
Postscript: I texted my son to ask him if he would leave his job if he were required to work in the NYC office. His text came fast and certain “Yes”. And then 5-minutes later, he typed “unless they paid me double my salary”.
Big. City. Blues.
Warren
July 2022
While remote and non-remote workers win roughly the same number of promotions, remote workers’ salaries tend to grow more slowly over time. These findings suggest that, despite remote work becoming increasingly common, proximity bias might not be dead – there is still a cost to not showing up in the office. (The Wall Street Journal)
High inflation, a looser labor market, and the looming threat of recession could weaken the work-from-home revolution, according to labor market experts. With more companies beginning to pull back on hiring (and some even rescinding job offers), managers will likely have more leverage to dictate working conditions, even a return to the office. (The Atlantic)
Gen Z may get attention for their workplace demands, but their older siblings are the ones betting big: Around two-thirds of executives report Millennials as having the highest churn rate at their companies. The likeliest driver for their departures is a desire to work remotely, with 57% of Millennials saying they would switch to a job with more flexible remote work options, even if it meant taking a pay cut. (Fortune)
Research shows that the “pace of change” in the workplace over the last five years has sped up, with the vast majority of positions changing more between 2019 and 2021 than 2016 to 2018. While this is largely attributed to the pandemic, other long term forces also highlight how quickly organizations should be able to adapt to change and how critical agile leadership is. (Emsi Burning Glass)
Digital collaboration tools are more prevalent than ever, but shared documents come with unique challenges. Collaborative programs are certainly useful, particularly when working remotely, but managers should take note: Many employees find working in shared documents distracting and overly public, often choosing to first draft their thoughts privately. (The Wall Street Journal)
The two most sought after skill changes (across all industries) are digital skills in non-digital occupations and soft skills in digital occupations. While this may seem counterintuitive, it simply shows that managers are placing a higher emphasis on well-rounded hires who can learn new things quickly while working well as part of a team. (Emsi Burning Glass)
Some companies embracing remote or hybrid work models are investing in digital HQs – digital hubs for employees that underpin an organization’s operations, output, and culture. Some benefits of shifting to a digital HQ can include fewer internal emails, higher individual and team productivity, and faster group problem solving. (Worklife)
According to a new poll, K-12 educators are the most likely to feel burned out at work (44%), while those working in finance are the least likely to report burnout (21%). Not all white-collar workers are so relaxed though; college and university workers (35%), those working in professional services (33%), and government and public policy employees (33%) are also feeling the pressure. (Gallup)
A Message from Our CEO – June 2022
Dear Friends,
I got Covid last month and I felt sick and cranky. I'm not sick anymore, but I'm still cranky. Bogged down by excess paperwork, Zoom fatigue, inflation and a looming recession. If you feel the same way, you're not alone. What is it that we need to feel whole? There's meditation, yoga, and Netflix, but maybe you need an empathetic boss to take some of the weight off. Corporate America is now 'discovering' the role empathy plays in leadership. It's about time. This is the core of our consulting practice.
Developing empathy is hard work and requires leaders to be vulnerable, which ironically, happens to be one of the highest contributors of their anxiety. Leaders need time to stretch and expand and practice with empathy. We find that peer coaching strips away the trappings of work and allows leaders to be with other leaders in an open, no-blame setting. We'd recommend it to any leader who wants to grow their empathy muscle. But it's just like going to the gym -- it only works if you have a routine and are disciplined.
As Brene Brown says…
Empathy. Drives. Connection.
Warren
June 2022
In an effort to better retain workers, many employers are trying a kinder, gentler approach to management. Several major companies have integrated modules on empathy, active listening, and communication styles into their leadership training programs – and employee feedback suggests that these efforts are well-received. (The Wall Street Journal)
The additional strain of running an organization during the uncertainty caused by the pandemic has led to a swell of interest from C-suite execs seeking more mental health support. Newfound expectations that managers be able to demonstrate empathy and reveal vulnerability were cited as another possible source of anxiety among senior leaders. (Worklife)
Corporate surveillance software is now more popular than ever, but its use has been shown to lead to employee distrust in management and higher stress levels. While Xers and Boomers might instantly push back against “Big Brother,” Millennials might appreciate systems that promote efficiency and optimization; an ideal software would be gamified, recognizing and rewarding accomplishments, not just logging and punishing infractions. (The Economist)
The share of companies saying that remote work salaries are dependent on an employee’s location has fallen from 33% in 2021 to 24% in 2022. Compensation for remote workers remains a tricky issue however, and many organizations are turning to consultants to help them create a hybrid pay scale, navigate interstate (or international!) tax laws, and retain their best talent in a competitive labor market. (Bloomberg)
Goldman Sachs is the latest big company to offer its senior employees unlimited vacation, a perk that has become a popular recruiting tool but has not led to employees taking more days off. These types of benefits are no substitute for a company culture that promotes a healthy work-life balance – many workers with unlimited vacation actually report feeling less comfortable taking time off. (The New York Times)
Thousands of U.K. workers are starting a four-day work week this month with no cut to their pay, so far the largest trial of its kind. Calls to shorten the work week have gathered steam in recent years, and these researchers hope to better understand the impact this schedule will have on productivity levels, gender equality, the environment, and worker well-being. (The Guardian)
Apple is the latest employer getting pushback in response to their return to the office policy, with an internal survey showing that 76% of Apple workers were dissatisfied with the company's plan, and 56% said they'd consider resigning over it. Companies hoping to return to the office without sparking a mass exodus should proactively seek out employee feedback before making any announcements or implementing new policies. (BBC)
“Body doubling,” an ADHD productivity tool in which people work simultaneously alongside one another, has become increasingly popular on Tik Tok among users working from home. Going to a coffee shop to write or to a gym to exercise is nothing new, but virtual body doubling offers remote organizations who are hoping to encourage casual employee collaboration another viable, online option. (The Washington Post)