Uninformed decisions breaking workforce: Why data is key

The era of flexible and hybrid work didn’t start with the pandemic, instead, it put it on a fast-track to a revolution that was already growing. Business leaders had the unenviable task of keeping their organizations vital and productive while navigating public health crises and seismic economic turbulence. But they couldn’t do it alone. Had it not been for the agility and resilience of our workforce and its ability to rapidly adapt to the new rules of work, our institutions and economy could not have persevered as they have.

The pandemic served as an inflection point, rigorously testing the collaboration and cloud technologies that we’d been perfecting for nearly two decades. I don’t need to tell you that they passed with flying colors! After an initial period of adjustment, we were able to adapt and rise to the occasion, working productively and contributing while dealing with a wide range of new realities brought about by the pandemic and our new at-home arrangements.

It worked so well that it led us to a major realization: That some form of remote or hybrid work was not only preferable but far more optimal than working in the office five days a week and the nasty commute that came with it. Not only were we more engaged and productive, but we were also healthier in mind, body, and spirit.

Not everyone saw it that way, however. Some bosses, perhaps feeling a loss of control, or perhaps measuring productivity by time rather than output, were quick to blame more flexible working models for declining engagement and productivity, instead of looking inward at the true causes: Culture and leadership.

And so began the heavy-handed mandates to return to the office – or else!

Failure to recognize key signs

Empowered by the success and flexibility of remote work, employees began to scrutinize more than just their work arrangements. They questioned managerial competence, organizational culture, and the adequacy of their compensation. This newfound empowerment and dissatisfaction laid the groundwork for what we now call the “Great Resignation,” where literally 10s of millions of people left their jobs in search of better opportunities.

When the job market tightened, the “Great Resignation” morphed into the troubling trend of “Quiet Quitting“—employees mentally checking out but staying in their jobs. This trend persists, and it’s a damning indictment of the state of work culture and leadership today.

So, why did we get here? Leadership missed critical early signs mostly by failing to engage and seek the input of employees. And now, as the push for return-to-office (RTO) mandates intensifies, the situation worsens, revealing a leadership class out of touch with the realities of its greatest asset. Decisions affecting the entire workforce are being made in a vacuum, exacerbating these problems and driving a deeper wedge between management and workers.

Now we wish we had better understanding

Where exactly are the higher-ups dropping the ball? It boils down to underestimating the critical nature of employee engagement. And let’s be clear, engagement doesn’t mean merely having friendly chats with team members or hosting town hall meetings. It means developing a deep, insightful understanding of what employees are going through, what they’re thinking, and what they truly need to do their best work.

The bosses too, it seems, are starting to realize the error of their ways, with a recent survey finding that an astounding 80% now regret how they “handled” RTO, wishing that they had taken the time to develop a better understanding of their teams’ needs.

In this case, it is not that difficult to understand what they want. They want a reasonable amount of flexibility between working from home and working in the office. The pandemic provided them with undeniable proof that work-life balance is possible and that there is no trade-off between productivity and flexibility. To put it another way, they want to be treated like adults and judged on their work, not on how long they are at the office.

Of course, it’s a tad more nuanced than that. How can well intentioned leaders meaningfully engage their workforce at scale?

Data key to unlock workforce crisis

This isn’t to say that leaders have it easy. It can feel impossible to keep every nook and cranny of the business in view, especially in the era of distributed work. But this does not excuse leaders from seeking to understand the perspectives and needs of their employees. Remember, if managers don’t know what their employees are thinking, they are disconnected from the very pulse of the organization they’re tasked to lead.

New tools and methodologies are enabling us to efficiently tap into and mine the collective wisdom of employees, de-risking critical decision-making and positioning us to lead more effectively and build trust within our organizations. It’s essential to remember that the workforce is more than a collection of roles and responsibilities. Employees can offer invaluable insights, unique viewpoints, and a wealth of knowledge. Leaders who are disconnected from this reality would be stunned to discover the transformative impact that constructive employee feedback can have on an organization.

Related: 2024 employer health care costs projected to jump 8.5%: Here’s why

The pressing task for leadership is to quickly identify effective ways to gather, analyze, and implement employee insights. Converting this wealth of information into actionable data can be a game-changer in averting an escalating workplace crisis. Informed decision-making is a cornerstone of effective management; employees depend on their higher ups for it!

Employees are the experts on the front lines of business. They not only face challenges daily but also have unique insights into potential solutions. Why wouldn’t leaders listen to them and act?

Henry Nothhaft Jr., president, EssentialDx