Corporate morale has a direct relationship with attrition. And, if work environments are not approached with consideration, morale will decline. HP found in its 2024 Work Relationship Index that unhealthy relationships with work significantly impact employee wellbeing and business outcomes. The majority (77%) of desk workers report that empathetic leadership is important to them, as it directly impacts their wellbeing and professional growth. Yet only 27% of business leaders say that, when it comes to leadership, they are confident in their interpersonal skills.
Without the right leadership, these issues can be exacerbated in hybrid organisations, where connections and collaboration are sometimes more limited. And while it may feel like an uncertain time to be a leader, this only increases the need to lead with confidence and clarity.
Neil Sawyer is HP’s UK and Ireland managing director. He believes that the key to success in a hybrid environment is “radical ownership”, especially in a difficult business climate.
“This means encouraging all employees to have a mindset of ‘this is my project, I can own it and solve problems’, and then giving them the authority to make it happen,” he says. “It means fostering a culture where employees take responsibility for their decisions.”
Bold, confident leadership
In the current economic environment, the appetite for risk is declining, Sawyer says. “Leaders feel less certain, which can freeze investment and reduce the willingness to innovate,” he adds.
Uncertainty can also lead managers to succumb to ineffective management styles like micromanaging staff. While it can be tempting to step in and keep a close eye on projects when times are more challenging, this approach is disempowering and can make staff feel overwhelmed and distrusted. “Leaders have to inspire, educate and empower their employees,” Sawyer says.
The importance of trust and empathy were key themes to emerge from HP’s Work Relationship Index. Almost three in four business leaders acknowledge that emotionally intelligent leadership is the only way a leader can be successful going forward. The study found that emotional intelligence also holds considerable weight with employees, with 85% of knowledge workers saying they’re willing to give up 10% of their salary to work in a more engaging and fulfilling job.
In contrast to more hierarchical structures, radical ownership will allow staff to feel trusted and respected. “It’s infectious,” Sawyer says. “People love it. They’ll share their mindset with others.” This will help ensure that workers – wherever they are based – are contributing not only to the bottom line but to the strategic direction of a business.
Steps to success
How can leaders build the right culture and environment for radical ownership? Sawyer says there are some easy wins. The first is asking people to set their own goals for their work or their team’s work. By doing this, employees can begin to feel a sense of empowerment. They will want to help the team succeed in reaching its objectives.
Second, Sawyer makes a more unusual suggestion. “Drastically cut down the number of objectives as much as possible,” he says, advising teams to limit them to just three. “The act of reflecting and picking three that will make the biggest business impact – but will still be measured on and must stick to – is what creates that sense of ownership.”
Finally, he advises leaders to push their teams to work toward aspirational goals that allow them to work to their peak capacity. If teams are provided with the right support and wellbeing, this growth mindset will help employees think more holistically about their work, not just about their quotas or direct targets.
Of course, to encourage staff to take ownership and set them up to reach their goals, leaders must ensure they receive adequate training and support. Without an investment in learning and development, initiatives intended to empower staff may leave them feeling stressed.
A culture of radical ownership also means taking employees’ working preferences into consideration. Although there can be collaboration issues if handled poorly, companies shouldn’t be quick to dismiss flexible working requests. According to HP’s research, desk-based workers would take a 13% pay cut to work somewhere that supports flexible working. Flexibility can give employees a sense of ownership in their working lives. By choosing how they work, they will feel greater autonomy and a sense of trust from their leaders.
Retaining and attracting talent despite uncertainty
Talent retention and attraction can both be affected by employee morale. The majority (67%) of employees report that empathetic leadership positively impacts their desire to stay with a company, yet only 29% report that their senior leadership demonstrates empathy.
Low morale may have been a contributing factor to the ‘great resignation’ that plagued many office-based businesses after the pandemic. Further economic uncertainty poses challenges, but, as Sawyer points out, it also brings opportunities for companies to improve their relationships with their workforces.
Radical ownership makes organisations more agile and capable of dealing with uncertainty and the pace of change
“Radical ownership makes organisations more agile and capable of dealing with uncertainty and the pace of change,” Sawyer says. This kind of working environment is less rigid and static than a traditional, top-down approach. It fosters inclusion, empowerment and agile thinking.
Companies may also see the additional benefit of achieving their strategic objectives without having to resort to cuts and operational efficiency. This is a particular boon when the economic landscape is posing challenges to businesses across the board.
From an employee engagement point of view, radical ownership “makes people feel better about and have a healthier relationship with work,” Sawyer says. “They have greater autonomy to do what they want and more clarity around what they need to achieve.”
Companies that can achieve a growth mindset while fostering psychological safety and providing training to enhance agility and problem-solving capabilities will see their hybrid workforces be happier and more effective. By inspiring ownership, leaders can encourage their workforces to problem solve, take authority and make a positive impact in a difficult economic climate.
Explore the findings of the latest edition of the HP Work Relationship Index
Corporate morale has a direct relationship with attrition. And, if work environments are not approached with consideration, morale will decline. HP found in its 2024 Work Relationship Index that unhealthy relationships with work significantly impact employee wellbeing and business outcomes. The majority (77%) of desk workers report that empathetic leadership is important to them, as it directly impacts their wellbeing and professional growth. Yet only 27% of business leaders say that, when it comes to leadership, they are confident in their interpersonal skills.
Without the right leadership, these issues can be exacerbated in hybrid organisations, where connections and collaboration are sometimes more limited. And while it may feel like an uncertain time to be a leader, this only increases the need to lead with confidence and clarity.
Neil Sawyer is HP’s UK and Ireland managing director. He believes that the key to success in a hybrid environment is “radical ownership”, especially in a difficult business climate.
