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ESSENTIALS FOR LEADERS AND THOSE THEY LEAD
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Edited by Rama Ramaswami Senior Editor, New York
Office friendships, a staple of TV sitcoms, may not be as intense in real life as they are onscreen. But there’s little doubt that social ties in the workplace used to be much stronger before the pandemic and its aftermath, which loosened most of our physical links to the office. As traditional ways of working change, social capital—the workplace connections that are essential to both individual advancement and organizational cohesion—has plummeted. It falls squarely to leaders to rebuild the networks, relationships, and engagement that can strengthen productivity and company culture. Here are some strategies to consider.
AN IDEA
As remote work takes root in many organizations, the workplace camaraderie and connections that office workers previously took for granted are declining fast—and may be a factor in the discontent that leads to employee attrition. To counter this, business leaders should consider managing social capital with the same intentionality and precision that they bring to handling human, financial, and other forms of corporate capital. Based on their survey of more than 5,500 US workers on the state of their networks and connections, McKinsey senior partners John Parsons and Bill Schaninger, along with coauthors Taylor Lauricella and Brook Weddle, suggest that leaders can evaluate an organization’s social capital by examining whether employees have the motivation, access, and ability to build relationships. Leaders can then offer individual coaching and mentorship, as well as initiate organizational network-building activities.
A BIG NUMBER
55%
That’s the percentage of US frontline workers who are dissatisfied with the number and quality of relationships within their professional networks, according to McKinsey research. Sixty-six percent of frontline employees report networking less than once a month or not at all since the start of 2022. However, most workers do connect frequently with their bosses and coworkers; this gives leaders a chance to empower frontline managers and peers to create community and build networks for one another. Leaders can also help by encouraging frontline participation in town halls and events and supporting social activities.
A QUOTE
That’s according to a McKinsey survey of inclusion in the workplace, defined as the extent to which individuals feel that their authentic selves are welcomed at work, enabling them to make the connections and contributions that advance their career goals. Respondents consider inclusion so important that 39 percent have turned down a job because they did not perceive the potential employer as inclusive. Leaders can help foster the connections that strengthen inclusion—for example, by helping underrepresented colleagues develop meaningful support systems and creating an inclusive, purposeful experience for everyone.
A SPOTLIGHT INTERVIEW
‘I think social capital can be built in a virtual context as well as an in-person context,’ says McKinsey partner Brooke Weddle in this podcast on how to build a better sense of community in a workplace reshaped by the pandemic. In a large-scale survey of US-based companies, “we found that access to social capital has gone way down,” says Weddle. “Specifically, fewer than 15 percent of employees reported that their network had grown.” One way to address this may be to build social capital into performance management systems; for example, sponsorships that help junior employees advance can motivate people to develop relationships. Leaders can highlight the importance of social capital through actions such as checking in with team members on a personal level before starting a meeting. “I think leaders can play a big role in terms of role modeling what it looks like to place importance on the concept of social capital,” Weddle says.
BFF
Should you cultivate a best friend at work? Workplace friendships have been shown to improve employee engagement, retention, and satisfaction, and their absence can cause isolation and depression. But there’s a flip side: being too friendly with people at work can lead to friction, competition, perceptions of favoritism, or blurring of professional and personal boundaries. For example, you may avoid making a tough decision in the workplace because of fear of offending a friend. Leaders would do best to avoid such situations; rather, they may want to focus on instilling trust and confidence among employees, with the goal of improving overall workplace happiness.
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