Staying Committed to Culture & Leadership Development Through Uncertain Times

It’s no secret the last two and half years have been difficult—a global pandemic, stock market crash, and the Great Resignation, to name a few. A recent survey by the Financial Times found that nearly 70% of economists believe another global recession will begin in 2023.

Loeb Leadership witnessed first-hand that during the pandemic’s economic crisis, firms who stayed committed to their people experienced far lower voluntary turnover and adjusted more quickly to the changes. What did those organizations do differently, and what can you do to prepare for the next wave?

The Secret to Surviving Uncertainty: A High-Trust Culture

At the start of the pandemic in 2020, Loeb Leadership witnessed an increased demand for coaching and consulting as businesses and leaders struggled to adjust to the rapid workforce and economic changes. The most common coaching topics focused on stress management and wellness, grief, trauma, adjusting to a remote work environment, uncertainty, and broader diversity, equity & inclusion opportunities, to name a few. However, the most significant demand was support for building high-trust workplace cultures.

Research has found that by far, the greatest predictor of employee turnover is workplace culture, which is 10.4 times more likely to contribute to attrition than compensation.

Many organizations sought consulting to address their turnover, but by the time they started to feel the effects of the great resignation, people working in lower-trust organizations who were previously on the fence about leaving had by that point decided to resign. Leaders were scrambling to find any way to slow future departures, and it became clearer to them that culture was the solution.

“We often liken high-trust culture to insurance. Like insurance, it's easy to view culture support as expensive or unnecessary - that is until you need it. And once you need it, it's too late to then decide to get it,” says David Robert, Loeb Leadership’s Chief Talent Strategist and workplace culture expert.

It's no mystery that when you invest in your people, they stay. Global research from many of the top management consulting firms shows that organizations that invest in high-trust cultures in which everyone can thrive experience far lower voluntary turnover and are able to bounce back from setbacks much faster than their counterparts.

How Can You Invest in Your People?

To begin, don’t sweat the small stuff. Give people the benefit of the doubt and find frequent opportunities to come together to connect, even if it's virtually. Talk to your people often and ask them what they need to feel supported and valued.

Creating safe spaces where people can talk openly about their fears and concerns is a huge step as well, but make sure these sessions are professionally facilitated by someone who is trained in conflict management and stress reduction (We offer these facilitated groups, contact us for more information).

Get clear on what type of organization you want to be, and how you want your employees to feel about working there. Consider developing a culture transformation roadmap that Loeb Leadership will help you create as part of our culture consulting services.

What Role Does Leadership Development Play in Creating a High Trust Culture?

Once you can clearly define your workplace culture, you then have what you need to define a leadership philosophy and hold your leaders accountable to that standard.

A high trust culture, like any part of a dynamic organization, takes time and effort to maintain and nurture. A great leader is crucial to the ongoing success and stability of that culture.

Leadership development can help your leaders act in alignment with your culture and philosophy to support your business and instill calmness and confidence in themselves and others, especially when things are ambiguous and uncertain.

What Can You Do Today to Prepare? 

Start planning now. Don't wait for a crisis to occur to start thinking about how to develop and retain your talent. Work together with your people to develop a plan that creates opportunities for your team to acquire and refine new skills while taking potential budget limitations into consideration.

Consider getting approval now for your learning and development budget and start to allocate it, so that when those shifts come, you’ve already funded your plan.