In 2021, we saw a record number workers quit their jobs, disrupting businesses everywhere. Organizations large and small are struggling to address the problem, and many will continue to struggle because they don’t understand why their employees are leaving in the first place. In a recent McKinsey & Company study when employers were asked why their people were leaving they cited pay, work-life balance, and poor health. However in that same study employees cited their top reasons for leaving were not feeling valued by the company or their leaders or they didn’t feel a sense of belonging at work.
While I am sure there are many reasons for what people are calling the “Great Resignation”, I believe that one of the main drivers, if not the main driver is organizational climate/culture. If the pandemic has taught us anything it is that people want a renewed and revised sense of purpose in both their work and their home life. Yes, they want more pay, benefits and perks, but they also want to feel valued by the organization and its leaders.
Unfortunately, too many leaders believe it is too tough to focus on organizational climate/culture when they are trying to put out so many other fires. In fact many leaders either let it go unmanaged or relegate it to the HR function, where it becomes a secondary concern for the business. Leaders of organizations large and small have two critical responsibilities in their quest to maintain a viable and effective organization, Culture and Strategy.
Effective leadership is one of the greatest fundamentals to building a great organizational climate. How you might ask?
1. The personal behavior of the leader: As the one out front, leaders can only expect their team to follow their lead. Behaviors are repeated. Habits are imitated. Attitude is contagious. Leaders directly influence organizational climate through their leadership style, thus ensuring their actions and words adhere to the values and vision of the organization. The organization needs a positive role model to look up to and emulate. The number one rule of leadership is to know yourself and seek improvement. Leaders motivated by things like power and money attract others who are motivated by the same. Leaving an organizational culture where people only show up for a paycheck. There is a thin line between an innovative and toxic culture and the leader can and does often make the difference. Effective leaders work hard to shape their teams experience, engagement and wellbeing, all of which are critical to a thriving organizational climate.
2. Develop the Senior Team Sub-culture: Effective leaders surround themselves with people who share a common belief to commit their best efforts to the organizational goals. Once they have assembled the right team, the leader pays close attention to how they operate, communicate and make decisions. It’s about their behaviors, interactions, beliefs and values. Effective leaders use delegation to reinforce the organizational climate. They empower the team with responsibilities capable of showing them the big picture view of their work. Effective leaders offer their senior teams coaching and training, and reinforce the company’s purpose, mission and values through regular communication, setting expectations in the form of personal objectives each year. They build trust with the team by being transparent about everything going on behind the scenes.
3. Communicate, Communicate: Clear and transparent communication promotes frequent feedback. Effective leaders help people grow by connecting employees to three pillars: Purpose, Accomplishment and One another. When they share their purpose and views on work with the organization it acts as a guide to follow. Providing this awareness allows the organization to work as a team to carry out the organizational strategies. Effective leaders hold people accountable and let them know when they are doing a good job. They acknowledge mistakes, but they also provide guidance on how to improve. Effective leaders connect the whole team to one another via a strong communication process such as a leadership blog, video or contacting and answering questions through forums. Proper communication techniques are the most important tool the leader has to influence organizational climate in a positive fashion.
If you model desired behaviors, establish a clear purpose and hold people accountable, you can have even more influence on your organizations climate and performance if you make it personal. This means understanding what personally motivates the team and giving them the opportunity to develop new skills, and creating a work environment that works for them and the organization.
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