
O.C. Tanner Unveils Landmark Study, the 2022 Global Culture Report, as Companies Continue to Navigate the “Great Resignation” Era
O.C. Tanner, the global leader in employee recognition and workplace culture, today announced the release of its 2022 Global Culture Report. In its fourth year, the report provides an in-depth look at timely workplace culture and employee experience issues based on data gathered from over 38,000 employees, leaders, HR practitioners, and executives from 21 countries worldwide. The report was announced at O.C. Tanner’s annual culture conference, Influence Greatness, which took place virtually for the second consecutive year.
“Demonstrating a causal relationship between
employee recognition and the strength of connection between employees, this
year’s landmark study supports over a decade of research to show that
recognition is a critical tool for organizations, particularly in an era rife
with disconnection and social fragmentation," said Dr. Alexander Lovell,
Director of Research and Data Science at the O.C. Tanner Institute.
"Additionally, our research makes clear that the recent ‘Great
Resignation’ phenomenon is only the beginning. Repairing the damaged aspects of
workplace cultures is imperative, but will not be easy. It will take time to
thoroughly rethink long-held beliefs about the employee experience and
approaches to building workplace culture, and we hope this report will act as a
guide for those company leaders looking to do so.”
As companies approach a post-pandemic era, the
report highlights some of their greatest challenges: creating meaningful
employee experiences and connecting people across the organization. Generic,
top-down programs for collaboration, recognition, and growth will no longer be
effective. Because the pandemic has affected employees in extremely different
ways, personalizing the employee experience will be crucial to building
inclusive cultures. Leaders will have to inspire great work in their people
regardless of where it’s done. As they look to reimagine the workplace,
organizations today have the opportunity to refresh their cultures—to exceed
the best of their old normal, evolve their employee experiences, and focus on
what will truly drive business results.
“The former concept of workplace ‘normalcy’ left
the building in March 2020, and it’s not coming back,” said Gary Beckstrand,
Vice President of the O.C. Tanner Institute. “A new landscape of work and
business has emerged from the pandemic, and helping employees feel connected to
purpose, accomplishment, and one another—no matter where or when they work—is
more important than ever. With so much continued uncertainty, the 2022 Global
Culture Report shines a light on the specific elements that organizations need
to prioritize as they look to navigate the next phase of work.”
"Tackling timely,
industry-defining topics head on, this research identifies significant globally
and locally relevant learnings across 21 countries including India, United Arab
Emirates, Saudi Arabia and South Africa,” said Zubin Zack, Managing Director
for South Asia, Middle East and Africa at O.C. Tanner. “Especially
for India, one of the fastest-growing economies in the world, an informed way
forward is vital as the fight to attract and retain the best talent wages on.”
Sample key findings include:
● The
average employee engagement score is down 18% from last year’s report.
● Crucial elements of successful hybrid employee
experiences:
○ Career development program: 68%
○ Flexibility to choose the number of days worked
remotely: 65%
○ Clear expectations for availability when working
remotely: 65%
○ Opportunities for in-person social connection
with coworkers: 58%
● When employees have schedule and location
flexibility at work, the probability of cultural outcomes increase:
○ Engagement: 41%
○ Retention: 77%
○ Likelihood to be a Promoter on the eNPS scale:
41%
● 61% of employees say the workplace is where they
form most of their new friendships and that their social group at work inspires
them to do their best work.
● 45% of employees say the number of individuals
they regularly interact with at work has decreased significantly over the past
year, and 57% say they engage in fewer social activities.
○ In addition, 1 in 3 employees feel disconnected
from their leader, furthering feelings of isolation and loneliness.
● When employees feel less connected to their
workplace, culture, and purpose, the likelihood of great work falls 90%, the
probability of burnout increases 11x, and the odds that employees will leave
within three years surge 6x.
● Five distinct employee personas emerged and were
defined, each with their own general focus, work style and self-esteem:
Socializer, Tasker, Builder, Coaster, and Achiever.
○ Each of these personas has a different
probability of being engaged, and a different probability of doing great work.
Builders and Socializers have the highest likelihood of doing great work, while
Coasters have the least. Achievers have a relatively high probability of
engagement, but not great work.
○ Different types of recognition affect feelings
of connection differently for each group. For the often-introverted Tasker,
public praise has a negative effect, but eCards and monetary eCards increase
connection. For Builders, any form of recognition builds connection. Public
appreciation has the most significant impact on the more outgoing Achievers.
● The formula for creating peak employee
experiences starts with meeting three basic needs: autonomy, connection, and
mastery.
○ When leaders understand employees’ recognition
preferences and personalize recognition moments, the odds of higher autonomy
satisfaction improve 126% and the chances of higher connection satisfaction
jump 145%.
○ Leaders who advocate for employee development
increase the likelihood of satisfying autonomy needs by 115%, connection needs
by 124%, and mastery needs by 131%.
● Organizations have a 7.5x increased likelihood
of improving the employee experience when they meet the needs of employee
autonomy, connection and mastery.
This comprehensive report, which serves up
actionable data for business leaders seeking change, can be accessed at O.C.
Tanner’s website here: https://www.octanner.com/in/global-culture-report.html.
About O.C. Tanner
O.C. Tanner is the
global leader in software and services that improve workplace culture through
meaningful employee experiences. Its Culture Cloud employee recognition
platform helps people feel appreciated, do their best work, and want to stay.
O.C. Tanner drives positive business results by helping millions of people
thrive at work. For more information visit octanner.com/in.
Research Methodology
The
O.C. Tanner Institute uses multiple research methods to support the Global
Culture Report, including interviews, focus groups, cross-sectional surveys,
and a longitudinal survey.
Qualitative
findings came from 16 focus groups and 85 interviews among employees and
leaders of larger organizations. Each group represented various types of
employers, including both private and public entities.
Quantitative findings came from online survey interviews administered to employees across Argentina, Australia, Brazil, Canada, China, France, Germany, Hong Kong, India, Japan, Mexico, the Netherlands, Philippines, Russia, Saudi Arabia, Singapore, South Africa, South Korea, the United Arab Emirates, the United Kingdom, and the United States. The total sample size is 38,177 workers at companies with 500+ employees.
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