O.C. Tanner Unveils Landmark Study, the 2022 Global Culture Report, as Companies Continue to Navigate the “Great Resignation” Era

SALT
LAKE CITY, UTAH – Media OutReach – 23 September
2021 – 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 organisations,
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 organisation. Generic, top-down programs for collaboration,
recognition, and growth will no longer be effective. Because the pandemic has
affected employees in extremely different ways, personalising 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, organisations 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 organisations need to prioritise as they look to
navigate the next phase of work.”

“No
matter how tempting it may be to revert back to pre-pandemic modes of thinking
and working, the 2022 Global Culture Report emphasises the need for
organisations across the globe to continue the march forward,” said Alan
Heyward, Managing Director for Asia Pacific at O. C. Tanner. “As markets
recover and HR leaders continue to assert their position as a strategic partner
through trying times, the findings from this extensive research can prove to be
invaluable.”

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: Socialiser, 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 Socialisers 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 personalise 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%.

●     Organisations 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/global-culture-report.html.