Understanding how best to support and engage your workforce while going through transformative moments is critical to the HR function's ability to lead and promote the cross-functional solutions needed for increasingly complex challenges.

Your people are keys to your transformation success

Organizations find themselves at the intersection of a wholesale rethinking of work, and the commonplace adaptations necessary to be fit. Navigating this intersection will require them to keep the concerns of their people at the center of their policies, plans and priorities.

In 2021, the EY organization and the University of Oxford Saïd Business School formed a research collaboration to explore the common factors behind successful organizational transformations. A resulting survey of more than 2,000 respondents in 23 countries and 16 industries showed that leaders who prioritize workforce emotions during transformations are 2.6 times more likely to be successful in those transformations than those who don't.

Additionally, more than half of respondents who had experienced successful transformations said their organization provided them with emotional support needed during the change. For less successful transformations, the emotional strain on the workforce increased by 136%.

Any change can increase stress levels, and we've seen how the pandemic aggravated some of the factors that promote burnout, including physical and mental exhaustion, isolation, and loss of connection between work and purpose.

The prescription for countering the negativity spiral rests in leaders and organizations adopting behaviors that create stability through transformation. The EY/Oxford research reveals six behaviors that are displayed by organizations with more successful transformations: lead, inspire, collaborate, care, build and empower. Each of these helps to promote a safe, encouraging, and supportive environment even as the organization is recreating itself.

From the HR function's perspective, total rewards strategy can be a way to respond to major emotional and psychological strains on a workforce during periods of transformation, along with fulfilling operational demands. And this coincides with organizations looking for innovative ways to reward their employees that go beyond financial reward, allowing for increased productivity, engagement, and connectivity in a hybrid work environment.

Why wellbeing helps transform  

At its core, an organization's approach to workforce wellbeing should be one of empowerment and fortification. Leaders can demonstrate the six drivers for successful transformations by putting in place policies, programs and opportunities that promote health, organizational connection, and a sense of meaning.

Employees are increasingly concerned about compensation and rewards as they enable the reimagined idea of work that they've come to expect. But data also shows that a lack of fear of changing jobs means many employees feel that they are in the driver's seat and have more control than ever before. The EY 2022 Work Reimagined Survey results indicated nearly half (43%) of respondents say they're likely to leave their employer in the next year, and 79% of employees believe changes should be made to total rewards, given the impacts from the pandemic. These realities and employee expectations require HR leaders to reimagine the impact of total rewards offerings.

For example, employees are concerned about pay, but also that there is pay equity across the organization. They are also worried about work flexibility, in terms of schedule, location and having the technology to excel at their roles and remain connected to teams, while building better balance into their workday. In addition, they expect a leave policy that recognizes major life events, and they are concerned about career advancement, upskilling and reskilling, and what might their growth potential be in uncertain times. Employees also want training and feedback mechanisms that empower them to have a voice in their organization's direction, along with the direction of their own teams.

By being intentional with total rewards strategy, leaders can build a framework for an employee experience rooted in the drivers above, including caring, collaborating, and empowering, while also representing the values the organization holds now and through times of transformation.

Policies should reflect priorities and create a psychologically safe space for people to be their best, when they are needed at their best.

Three considerations through change

Building on the six drivers for successful transformation, HR leaders might consider three areas for emphasis when creating stability through change:

• Total rewards resources should encourage physical and mental health, and leaders should take care to promote healthy work habits. While this may seem like common sense, it's important to make a conscious effort to address the factors that influence a workforce's emotional journey, which is particularly important in times of transformation.
• Communication, relationship building, and experiential learning can contribute to a positive growth mindset, even amid uncertainty. Leaders need to communicate a vision during a transformation, while also communicating about their own journey. Humility from a leader can promote honesty throughout the organization and encourage teams to build relationships based on common challenges leading to common solutions. Encouraging new ways of thinking, even with new ways of working, can keep teams engaged and empowered as your organizational change continues.
• Times of transformation are stressful, but that stress can be focused on resilience. The EY/Oxford survey indicates organizations that focus on learning and upskilling, with a deliberate shift from technical or functional skills to adaptive skills, increase transformation success rates by 137%. As such, leaders should look for creative ways to upskill and reskill employees, with a focus on those adaptive skills. This may include empowering cross-functional teams to knowledge-share on critical high-value skills such as resilience, social/emotional intelligence, learning agility and creative reasoning. Employees might be offered online, or digital learning opportunities based on their career advancement goals, and the needs of the organization.

Read more: An adaptive workforce needs change-ready leaders

Constant transformation doesn't have to be an exhausting prospect, if leaders and organizations position themselves in the right way. By prioritizing the concerns of their people, leaders can build an environment that cultivates positive sustainable change.

The views reflected in this article are the views of the author and do not necessarily reflect the views of the global EY organization or its member firms. Nothing in this article should be viewed as providing a legal opinion, prediction, or advice.

Adam Berk, EY Americas People Advisory Services Total Rewards Service Leader and Christine Wilson, EY People Advisory Services Partner