While employers last year made significant investments in workplace culture, "the journey to thriving workplaces is just beginning," according to O.C. Tanner's 2020 Global Culture Report.

"In spite of some positive changes in corporate culture, we have uncovered a new wave of challenges: a growing frustration with conventional workplace practices, an alarming increase in burnout and a rejection of traditional leadership practices and philosophies," the authors write. "Organizations need to break out of the employee lifecycle mentality to focus on the everyday micro-experiences that, for employees, define life at work."

Nowhere is this more evident than in the current way many leaders engage with their employees, according to O.C. Tanner's survey of 20,000 workers and leaders across the globe.

"Younger generations are rejecting old-school leadership practices outright, forcing organizations to rethink and reshape the way leaders lead," the authors write. "Effective leaders are described as inspiring mentors, advocates and influencers. By today's standards, if you aren't helping employees to succeed, learn, grow and find meaning in their work, you're not viewed as a leader. Period."

However, less than half of 20,000 workers surveyed by O.C. Tanner feel their leader works to develop them, and only 26 percent feel their leader encourages collaboration. More than one-half say their leader won't give up control over anything. To make matters worse, only 59 percent believe their leader values them, and one in five say their leader regularly expresses doubts about them.

"The impact of poor leadership is disastrous," the authors write. "Companies that support and maintain these traditional leadership approaches have lower scores on employee experience, engagement, great work, NPS and all six essential aspects of workplace culture — purpose, opportunity, success, appreciation, wellbeing, and leadership. They have a decrease in odds of growing revenue and increased odds of laying off employees."

O.C. Tanner research found that when leaders connect their people to purpose, employees are 373 percent more likely to have a strong sense of purpose, 747 percent more likely to be highly engaged and 49 percent less likely to burn out.

Moreover, when leaders connect their people to accomplishment, there is a 259 percent increase in odds an employee will have a strong sense of opportunity, 247 percent increase in odds an employee will do great work, and they will be 46 percent less likely to burn out. Likewise, when leaders connect their people to one another, there is a 156 percent increase in odds that an employee will have a strong sense of well-being, a 374 percent increase in odds that an employee will feel appreciated and the employee will be 47 percent less likely to burn out.

"All of which indicates that modern leaders need to learn and practice the art of building connection," the authors write.

To accomplish that, O.C. Tanner recommends the following for leaders:

Clearly articulate the meaning of each employee's work and communicate how it impacts the organization, its customers and the world.
Show you believe in your people, be involved in the entire process of accomplishment and allow employees to lead out on their own.
Mentor, encourage collaboration and help employees build their own social networks within teams and with others in the organization.

"Smart leaders look for opportunities to create micro-experiences that connect employees to purpose, accomplishment and one another that build a culture of motivation and success and propel employees to do great things," the authors write. "Helping leaders shift from a traditional mentality to a more modern mindset takes time — and active development, but it will dramatically improve the everyday employee experience, create a thriving workplace culture and lead to business success."

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