In order to set a business on a path to success and future growth, the entire workforce must take an active part in transformation efforts. In our 2024 Performance Transformation Global Executive Survey, almost all executives have said culture has a positive impact on their businesses’ transformation. Beyond retention and attracting talent, employee engagement is essential to encourage thinking outside the box, unlock innovation, and create greater value.
How companies can boost employee engagement during transformation
While recognized to be influential, in practice maintaining a positive workplace culture and shared sense of direction can be a key challenge during transformations. Companies are often unable to maintain employee trust throughout the process. Below are key factors that can help executives engage employees and ensure lasting cultural change.
Leading by example to create a shared sense of direction and trust
Transformations are often met with resistance from employees who feel disconnected from the process, confused about its aims, and uncertain about the future of their roles. To overcome this, transformation leaders should communicate objectives early and widely to the workforce, showcasing that the program is not just about cost reductions but will also create value. Ineffective leadership ranked as the primary severe risk globally in Mercer’s 2024 People Risk Survey, with 36% of executives citing concerns around inability to motivate the workforce towards a unified vision, and 35% citing negative organizational culture and mistrust.
When implementing transformation principles, such as non-value adding expense reduction or new ways of working, leadership by example can drive adherence and create a sense of shared ambition. For instance, having the CEO or other C-suite executive demonstrate adherence to rules such as giving up access to market data services, company cars, or travel, can incentivize other employees to do so too. When leaders make themselves visible advocates, they help keep morale high and create the belief that everyone is in the same boat and can contribute to change.
Communicating transformation benefits and opportunities with clarity
It is crucial that leaders clearly communicate opportunities for all employees. That includes ensuring the offshore workforce is not reliant on transfer to onshore locations to progress – a common challenge in the Asia Pacific region where offshore employees are sometimes expected and incentivized to relocate to progress to more senior management positions. Fostering a sense of togetherness and cohesion between these different teams is essential to prevent loss of motivation and build trust with all employees.
To appease common fears around potential labor cuts, leaders should make sure any redundancies are carried out as equitably as feasible and timed along with regular release windows to reduce the impact on morale. A continuous communication campaign outlining benefits and opportunities for remaining employees, whether a potential promotion, ownership over a new project, transfer to a new location, or learning new skills can further help to create enthusiasm to get involved.
Incentivizing employees to contribute transformation ideas
All employees should play a part in change, not just by abiding by transformation principles, but also by contributing their own ideas and innovating. To successfully transform, businesses need widespread involvement, and cannot rely on the same small pool of “doers” who too often end up involved in multiple initiatives, risking oversubscription and burnout.
In our 2024 survey cited previously, 70% of executives reported that culture helps them to unlock workforce potential and enhance their transformation strategy. When employees are given a platform to innovate and own transformation initiatives, companies are more likely to unlock value-generating ideas. Particularly in traditionally risk-averse Asia-Pacific workplace cultures, transformation leaders should actively seek to consult and incentivize employees to volunteer ideas. Existing talent pools can be leveraged to generate the big and small ideas needed to power a successful transformation and drive future growth.
Overcoming resistance to transformation is essential to set the business on the path to success. Leaders should highlight the opportunities transformation creates for all employees and why everyone’s involvement is necessary. A culture where all employees are able and encouraged to contribute ideas and innovate will help the business to continuously improve, unlocking future value, and ensuring lasting transformation success.
