Human Capital Intelligence - 3/19/2024
Cost of eroding workplace trust | Middle manager misery by the numbers | Boomers become more mission driven | GenZ communication conflict | RTO-ing for friendship
Welcome to the latest edition of Human Capital Intelligence. As always, we would love to hear from you at ken@stibler.me with news ideas, feedback and anything else you find interesting.
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By Ken Stibler; Powered by Reyvisum Analytics
What’s Working
Big Read: The cost and consequence of eroding trust in the workplace
In the wake of highly visible mass layoffs and economic turbulence, a wave of distrust is growing across businesses. From rank-and-file employees disillusioned by the shattered promise of stable employment, to the C-suite grappling with transparency gaps, faith in organizational leadership is fraying at an alarming rate.
The quantitative toll is staggering - 64% of workers have lost confidence in their employers following the latest spate of workforce reductions. This "great betrayal" has catalyzed an exodus, with less than half of those laid off even seeking opportunities in their former fields. Instead, a remarkable 73% now view freelancing as an appealing alternative to regain autonomy and flexibility.
“Nobody knows what the future of the workplace looks like. These guys are totally confused about what to do…If nobody figures out what’s next, everybody is screwed.”
—Michael Wolf, Bloomberg
Yet the impact transcends mere attrition. A startling 44% of C-suite executives report lacking substantive trust in their own leadership peers, according to PwC's 2024 Trust Survey. This crisis of confidence within top leadership risks disastrous ramifications as businesses struggle with pivotal strategic challenges demanding unwavering alignment, from cybersecurity to AI governance.
Middle managers struggle as leadership gets harder
Caught between the escalating demands from the C-suite and an increasingly restive workforce, the middle manager's role has become a profound test of leadership mettle. Long viewed as a requisite steppingstone in corporate hierarchies, this cohort finds itself overwhelmed, burned out, and ill-equipped to navigate the evolving complexities of the modern workplace.
The data paints a sobering picture - a staggering 82% of HR leaders concede managers lack the capabilities to effectively steer change. Unsurprisingly, nearly three in four middle managers report feeling swamped by responsibilities, with over half struggling to dedicate sufficient attention to their direct reports. This neglect comes at a cost, with a recent survey revealing 40% of those with less than two years of managerial experience are actively seeking exits.
Reading List
GenZs disrupt management as they increasingly step into leadership roles
As Generation Z is quickly entering into management roles, their distinctive and much derided culture is remaking management in the process, the WSJ reports. This cohort, whose formative years straddled a global pandemic and societal unrest, is ushering in a radically reimagined workplace distinguished by open dialogue, vulnerability, and an acute focus on holistic wellbeing.
Read more about what early indicators of GenZ’s management style reveal.
GenZ’s communication style creates a critical conflict
While generational stereotypes about GenZ frequently prove misguided, the younger cohort's distinctive communication styles represent a real and relevant clash in today's workplace culture conflicts. From liberal use of casual filler words to an innate resistance to conforming personas, GenZ's emphasis on authentic self-expression stands at odds with the formalities traditionally prized in professional settings.
Read more about how to strike a balance between flexibility and formality.
Baby boomers turn out to be more meaning driven than younger generations
Defying conventional stereotypes, Baby Boomers prioritize working for companies that align with their personal values and drive meaningful impact more than younger cohorts like GenZ. According to a global LinkedIn survey of over 14,000 workers, 34% of Boomers cited a "company driven by values that match your own" as a top factor when considering job opportunities - a full 75% higher than GenZ candidates.
Read more about the true state of generational divides in motivation.
Friendship offers a novel return to office argument among rising loneliness
A growing body of research is highlighting an overlooked argument for bringing workers back to the office: the profound benefits of workplace friendships. Remote work has fed GenZ’s desire for autonomy and flexibility, yet it's becoming clear that younger workers are exhibiting much higher rates of loneliness compared to prior generations.
Read more about how to turn office social life into a winning RTO argument.
Stat of the Week
In Other News
The Importance of Functional Talent in 2024. (HuntScanlon)
Walmart Wants to Teach Store Managers Compassion. (New York Times)
Why more CFOs are becoming CEOs. (Financial Times)
CEO Transitions Declined in 2023. (HuntScanlon)
Restaurants are raising prices in California amid rising labor costs. (Wall Street Journal)
The Era of Abundant Labor Reporting Is Coming to an End. (InTheseTimes)
Employers are feeling optimistic about hiring. (HR Brew)
No more free lunches: How laid-off tech workers are surviving a tight job market. (MarketWatch)
US salaries are falling. Employers say compensation is just 'resetting'. (BBC)
Event: Attracting And Retaining Global Talent - How Are Countries, Cities And Companies Competing For The Best Workforce? (Financial Times)
Employee expectations still trouble employers, HR leaders say. (HR Dive)
The crucial link between active listening and employee engagement. (Employee Benefits News)
EEOC hired more investigators, filed 50% more lawsuits in FY 2023. (HR Dive)
Judge blocks US labor board rule on contract and franchise workers. (Reuters)
2 in 3 women don’t feel they’re being paid fairly, Glassdoor says. (HR Dive)
Care.com Report Reveals Workplace Common Ground: Care Benefits. (Care.com)
Federal judge says Christian employers don’t have to cover gender transition. (HR Dive)
Political Noise Alert: Bernie Sanders pushes bill to establish a four-day workweek: The Sanders-led bill would reduce the standard workweek from 40 to 32 hours over four years and protect workers' pay and benefits. (NBC)
Requests for paid time off hit 4-year high, but approvals lag. (HR Dive)
How to Protect Your Boundaries When Your Company Is Struggling. (Harvard Business Review)
Americans live further away from work than ever before: chart. (Axios)
Uncertainty reigns as talent leaders grapple with flexibility, AI. (HR Dive)
AI Is Taking On New Work. But Change Will Be Hard—and Expensive: Many executives are still figuring out how, and how fast, to go with generative AI. (Wall Street Journal)
Confused About AI? A Guide to Which Flavor Will Boost Productivity for Business: The technology is evolving at a blistering pace, and figuring out which to use, for what task, can be tricky. (Wall Street Journal)
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