The Benefits of the New Employee-Centric Culture

EMPLOYEE ENGAGEMENT IS UP

Despite the challenges of adapting to new ways of working, work cultures in the U.S. and Canada are healthier, with engagement levels notably high. Sixty-three percent of employees reported feeling energized at work—with vigor as the most prominent aspect of engagement. This aligns with Gallup’s Global State of the Workplace 2021 report, which found the U.S. and Canada to be the only region where engagement increased during the pandemic.

WHY ENGAGEMENT MATTERS

Employee engagement reflects the energy employees invest in their work. It is best described as the authentic investment of one’s full self into their role. Research consistently ties engagement to positive outcomes, including retention, productivity, and profitability—relationships that are even stronger during challenging times.

Given the heightened stress levels, these findings may seem counterintuitive. However, the increased focus on employee care during the pandemic has contributed to a significant reduction in limiting values—what Barrett Values Centre calls "Cultural Entropy,®" The level of entropy reflects the amount of dysfunction in an organization, and this number dropped to 13% in this study, a 4% decrease from 2020.

By prioritizing care and support over fear-driven values like control and hierarchy, organizations improved cultural health, driving higher engagement levels.

Key Insight: Cultural health in the U.S. and Canada improved to a record low of 13% entropy, 4% lower than in 2020.

References

1. The great transformation? The cultural implications of COVID-19. https://www.valuescentre.com/resource-library/covid/

2. Harter, J. & Ghandi, V. (2021). 7 things we learned about US and Canadian employees in 2020. Gallup.com/workplace

3. Harter, J. & Ghandi, V. (2021). 7 things we learned about US and Canadian employees in 2020. Gallup.com/workplace

4. Hewitt (2009) https://www.peaqpartners.com/wp-content/uploads/2017/10/Hewitt_pov_engagement_and_culture.pdf

5. https://www.mdpi.com/2199-8531/6/3/82/htm

6. https://www.scirp.org/journal/paperinformation.aspx?paperid=72914

7. https://www.theguardian.com/business/2021/feb/04/home-workers-putting-in-more-hours-since-covid-research

8. https://www.newsweek.com/2021/04/30/employees-balk-end-remote-work-going-back-office-stupid-1583059.html

9. https://www.cbsnews.com/news/workers-quitting-jobs-record-rate-economy

About Barrett Values Centre’s Workplace Evolution Study: In May 2021, Barrett Values Centre launched a longitudinal research study to examine workplace culture shifts during the pandemic and understand the emerging workplace culture of the future. The initial study involved 1,200 full-time employees from the U.S. and Canada across various industries and demographics.

WHAT MAKES FOR A CARING CULTURE?

When exploring the relationship between Cultural Entropy and perceptions of care, the data revealed a clear connection. Organizations with lower Cultural Entropy fostered higher perceptions of care. For example, 76% of employees in organizations with 0% entropy felt cared for, compared to just 20% in organizations with 30% entropy or more.

Organizational values like leading by example, accountability, caring, and empowerment were strongly associated with a culture of care. Conversely, values like profit focus, hierarchy, and long hours detracted from perceptions of care and engagement.

Key Insight: Fostering care involves leading by example, accountability, empowerment, and open communication, while profit focus, hierarchy, and long hours erode it.

WILL THIS PEOPLE-CENTRIC CULTURE LAST?

As organizations shift focus back to performance and deadlines, there’s a risk of losing the progress made in employee care. Leaders must find a healthy balance between business priorities and the lessons learned during the pandemic. By maintaining a focus on care, organizations can retain talent, enhance performance, and build a healthier workplace for all.

Key Insight: Organizations that prioritize care, trust, and flexibility will emerge stronger in the ongoing "great resignation."

The global COVID-19 pandemic has turned the world of work upside down—or perhaps more accurately, inside out—as threats to employee safety forced companies to shift their focus from external performance to internal health. But what has this shift to prioritizing employees achieved? And will it endure?

In May 2021, Barrett Values Centre surveyed 1,200 Canadian and American workers as part of a global study examining workplace culture shifts and their impact on employee outcomes. This research builds on our 2020 Global COVID Culture Assessment, conducted when businesses were beginning to grasp the pandemic's far-reaching effects. At that time, employees rallied together, but they called for better communication and innovative teamwork strategies.

Now, a year later, what have we learned? As businesses prepare to reopen, what new workplace practices should we carry forward into reimagined, future-ready organizations?

PEOPLE-CENTRIC CULTURE

Despite the stress and uncertainty caused by the pandemic, our study reveals reasons to celebrate the workplace culture experienced by employees in the U.S. and Canada during this period.

The current workplace culture is characterized by unprecedented levels of employee care. For the first time, we observed a significant people-focus resulting in positive employee outcomes. Participants identified ten values or behaviors currently prevalent in their organizations. Surprisingly, five of the top ten values were employee-focused: employee development, engagement, fulfillment, health, and leadership development. These were cited alongside values reflecting workplace flexibility, including accountability, adaptability, and efficiency.

Combining a people-centric approach with high flexibility has fostered employee empowerment and innovation. But how has this shift influenced outcomes like engagement, commitment, and well-being?

Key Insight: Current workplace culture in the U.S. and Canada is highly people-centric, with five of the top ten organizational values focusing on employees.

PEOPLE-CENTRIC CULTURE DESIRED TO CONTINUE

When asked which values would best support their organization’s future potential, employees expressed a desire to retain the people-focused values they had experienced during the pandemic. In addition to values like engagement, fulfillment, and adaptability, employees called for more recognition, leading by example, and work-life balance.

Key Insight: Employees want the flexibility and people-first workplace culture introduced during the pandemic to become the new normal.

COMMUNICATION AND EMPLOYEE CARE

It might seem surprising that engagement rose during such turbulent times, but organizations have made substantial changes to prioritize their people. By actively listening and responding to employees’ needs—from working conditions to flexibility—leaders have shown that they value their workforce.

Forty-one percent of participants reported an increased emphasis on valuing employees, and 38% observed improved communication from leadership during the pandemic. However, the strongest predictor of engagement was employees agreeing with the statement, "I feel my organization cares about me as a person."

This aligns with academic literature showing a strong relationship between perceived organizational support and engagement.

Key Insight: Forty-one percent of respondents reported that their organizations’ valuing of employees increased during the pandemic.