Let's look at the tensions creeping up around return to office policies, and how to better support our people through this time.
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Quarterly Newsletter: Fall 2023

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🎉 Announcement! 🎉

    Before we get into it, we want to share a very exciting announcement. Corporate partners have been asking for it and it's finally here: Hudson coaching is now available at scale through Wiser! Wiser Leadership Coaching at Scale offers the premium quality of a curated cadre of Hudson coaches, with the convenience and accessible pricing of a digital coaching platform. Book a demo at Wiser website!

      Who’s working where?

       

      CNBC reports that 90% of businesses with office space plan to have return-to-office policies by the end of 2024, and 50% already do. By many accounts, it's not going smoothly – with efforts marked by lack of compliance, mistrust, and unfortunate side effects. According to Gartner's HR Priorities Survey, only 26% of organizations say their employees are complying with RTO policies. Some employees and commentators believe that strict return-to-office policies are downsizing in disguise. Reporting out of the UK suggests that stricter RTO policies are already resulting in fewer women being hired at tech companies.

       

      What should the work week actually look like? Economist Nicholas Bloom famously declared that the five-day office week is dead and the Flex Report shows the number of US companies requiring full time work in office is actually down 20% from the start of the year. Recent data from Gallup says that the sweet spot for engagement is hybrid work, with 2-3 days in the office showing a reduction in burnout and turnover compared with other configurations. Of course, this doesn’t answer the question. As HBR points out, the optimal setup will vary greatly by industry, organization, team, and individual and leaders need the skills to navigate the nuance.

       

      Managers caught in the crossfire

       

      Once again, we find managers in an impossible position: trying to enforce these policies, while also retaining their people. Managers (who also don’t want to return to the office) continue to be chronically under-equipped for such challenging dynamics. A brand new study from Chartered Management Institute reveals that 82% of managers in the UK reached their position without any management or leadership training. 

       

      Of course it’s nearly impossible for managers to stabilize their teams when the workforce keeps turning over, so it’s at least good news that recent data from ADP shows that the financial incentives for job hopping are subsiding. To guard against RTO related attrition, Quartz shared an interesting retention strategy for managers: instead of exit interviews, perform on-going "stay interviews" and get in front of satisfaction.

       

      According to The Economist, the staggering 68% burnout rate for managers is in part a reflection of the fact that managers have much more interaction with people than they once did. HBR elaborates further on the phenomenon of social burnout, exploring "microstresses" caused by increased collaboration and pointing to return-to-office policies as a new flashpoint. The Gartner study shows that 75% of HR leaders think their managers are overwhelmed and HP, who recently published their Work Relationship Index, tells us only 27% of knowledge workers have a healthy relationship to work. 

       

      From tension to transformation

       

      The latest Mental Health at Work report from Mindshare Partners shows that culture change is the most impactful way to support employees’ mental health, performing higher than self-care and direct treatment strategies. The Global Head of People at Australian software company Canva recently shared their secret to scaling empathy in their culture (spoiler alert, it's coaching).

       

      Recent thinking on culture transformation makes it feel a bit more accessible than it once did. McKinsey compiled research breaking down the key elements for successful transformation. In HBS Working Knowledge, the coauthors of a new book, Move Fast and Fix Things, present a provocative transformation process that happens over a week. In a recent webinar for MIT Sloan Management, Per Hugander discusses his work creating culture transformation through skills training.

       

      Wherever you or your organization is on the RTO journey, it's a good moment to remember our collective humanity as we forge the path ahead. We recommend revisiting last year's Hudson Coaching Conversation: Humanizing Work for a thoughtful discussion.

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      Hudson Coaching Conversations: Humanizing Work

      How leaders and organizations are reevaluating how to connect, interact, and support their people beyond the “work-specific” role.

      Watch the Video

      External Sources

      • 90% of companies say they’ll return to the office by the end of 2024—but the 5-day commute is ‘dead,’ experts say by Morgan Smith, via CNBC

      • Top 5 Priorities for HR Leaders in 2024 via Gartner

      • Why RTO mandates are layoffs in disguise, according to workplace experts: ‘Companies are daring employees to quit’ by Goh Chiew Tong, via CNBC

      • UK Tech Firms With Higher RTO Demands Hire Fewer Women by Irina Anghel, via Bloomberg

      • The "Five-Day Office Week Is Dead" by Nick Bloom, via The New York Times

      • Flex Report Q3 2023 via Flex Index

      • Layoffs, burnout, return-to-office wars: There’s never been a worse time to be a middle manager by Gary Beckstrand, via Fortune

      • How managers can handle employee return-to-office resentment by Hailey Mensik, via Digiday

      • Why most managers don’t want to come back to the office full-time by Yasmin Gagne, via Fast Company

      • Better Management Report: Taking responsibility - why UK plc needs better managers via Chartered Management Institute

      • Pity the modern manager—burnt-out, distracted and overloaded from The Economist, via Yahoo Finance

      • What’s Fueling Burnout in Your Organization? by Rob Cross, Karen Dillon, and Martin Reeves, via HBR

      • The Work Relationship Index, via HP

      • The ‘Big Stay’ isn’t going away as the labor market stops rewarding job hoppers, according to ADP payroll data by Nela Richardson, via Fortune

      • Replace exit interviews with 4 questions that get employees to stay by Anna Oakes, via Quartz

      • 2023 Mental Health at Work Report via Mindshare Partners

      • How Canva got clear on its values and added empathy to its processes by Jennie Rogerson, via Quartz

      • How to gain and sustain a competitive edge through transformation via McKinsey

      • Yes, You Can Radically Change Your Organization in One Week by Kristen Senz, via HBS Working Knowledge

      • Upgrading Culture for Growth and Transformation Webinar featuring Per Hugander and Laurianne McLaughlin, via MIT Sloan Management Review

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