Can HR Predict and Shape Corporate Culture in the New Era?

Like many topics in the human resources space, workplace culture took a hit during the pandemic. Years later, HR teams are clearly still working to pick up the pieces.

HR Dive's 2022 'Identity of HR' survey found that about 59% of respondents said culture — an umbrella term for functions including mentorship, engagement, and camaraderie — was one of the biggest challenges organizations faced due to the pandemic. Not only did culture receive the highest percentage of respondents among all challenges, but it was the only option selected by more than half of the 388 HR professionals surveyed.

That finding may not surprise HR teams that have struggled to maintain work continuity in a rapidly changing world. Among other factors, the pandemic forcedwork and people away from the office, which required managers to develop new skills to successfully deliver a consistent employee experience.

"Your readers are right to be concerned, because it's not easy," Lynne Oldham, chief people officer at fintech company Stash, told HR Dive.

Balancing flexibility and culture is especially difficult for new managers and seasoned managers who haven't previously managed remote teams, Oldham noted; "You really have to be fully supportive of these people and give them extra attention."

Oldham herself is new to Stash, having previously served as chief people officer at Zoom. Her tenure coincided with Zoom's product becoming the default platform for remote work. Before joining Stash, Oldham said the company had formed a working group to develop educational guides and timelines for managers of a flexible workforce. In addition to the advice provided there, Oldham assesses managers' progress through regular check-ins and surveys.

HR teams can teach managers specific lessons to improve their effectiveness in hybrid or remote environments. Reggie Willis, chief diversity officer at Ally Financial, said in an interview that his organization emphasizes communication, especially managers being as transparent as possible with employees at every opportunity. As an extension, managers should listen to employees' concerns while sharing their own struggles, but avoid inflammatory or disruptive remarks, he added.

"If you, as a leader, are not transparent in a hybrid work environment and are unwilling to share your difficulties or discomfort, then it rings hollow when you're trying to build culture," Willis said.

Similarly, Oldham emphasized the role of empathy in these conversations. Managers can identify where employees are struggling, while HR helps identify areas where certain teams may be 'hitting a wall' in productivity, she noted. Guidance around everyday tasks, such as hosting inclusive meetings, may also help.

The key to such practices is ensuring employees know exactly what to expect from managers, Oldham said. Employees 'don't leave companies; they leave managers,' she added, making this aspect of culture even more critical.

Security in uncertainty

Managers need to create an environment where employees feel safe sharing with them, Willis said. Ally does this in part by leveraging employee resource groups to create safe spaces for difficult workplace conversations, including those involving pressing social topics.

Psychological safetyhas become a term in HR vocabulary to describe an environment that encourages openness. This culture must be built on trust, where employees know and understand the organization has their best interests at heart, Willis said.

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"If you, as a leader, are not transparent in a hybrid work environment and are unwilling to share your difficulties or discomfort, then it rings hollow when you're trying to build culture."

Reggie Willis

Chief Diversity Officer, Ally Financial

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Many factors contribute to employees feeling safer within an organization. In the mid-2022 'Human Workplace Index' from HCM platform Workhuman, 55% of employees said having a good relationship with their boss or managermakes them feel safe, while 52% said being recognized for their contributions does the same.

"Recognition and appreciation make a difference," said Meisha-ann Martin, senior director of people analytics and research at Workhuman. When employers focus on these aspects, 'it helps connect people,' Martin added.

Managers can also assess whether existing practices incorporate psychological safety. For example, weekly check-ins may be a good practice, but HR may need to focus on whether managers are asking subordinates how they are doing, Martin said. She described it as hosting 'generous check-ins' that conveymanagers care about employees' lives beyond work.

Beyond manager-employee relationships, HR teams can explore levers like benefits strategies to positively influence culture. Willis said Ally is always looking for benefits options that help employees remain resilient in a turbulent economic and social environment. Access to meditation, therapy, and othermental health resourcesare a few examples.

"We're doing a lot of things that companies historically weren't expected to do," Willis said. "This integration of work and life is prompting HR departments to think about how to support employees."

The flexibility connection

HR Dive's survey found that across all organization size categories, most respondents offered remote or hybrid work. Although flexibility has become a hallmark of many workplaces in 2022, it may burden HR teams with determining the right balance of in-person versus remote time. Some commentators question whether certain jobscan ever be separated from the concept of the office。

However, for Willis and others, the office may be seen as a resource or tool to help organizations get work done. Employers need to understand the impact of proximity on culture, Willis said. Ally has identified 'big categories' of tasks and processes that might benefit from in-person gatherings or asynchronous work, but he noted, 'I don't know that we've found the silver bullet.'

Martin said Workhuman's research shows remote employees report the least connection to colleagues and culture among employee types surveyed, but these employees are alsoless likely to feel stressed or overworkedcompared to on-site colleagues.

"We have a responsibility to thoughtfully design these experiences to maintain the advantages and avoid the disadvantages," Martin added. "It's time to think about how people connect with each other."

In-person connection doesn't have to be limited to finding opportunities to bring teams together just to get more work done, Oldham said. Instead, it can allow teams to build relationships and find common ground in ways virtual spaces may not enable.

Onboarding experience, not just arrival

Although HR Dive survey respondents most often listed culture as a top challenge, recruiting followed closely; more than a third of respondents said recruiting is a top priority for HR departments today.

Given theexceptionally competitive U.S. talent market, this finding may not be surprising, but Oldham said recruiting is closely tied to culture. She noted Stash has tried to improve the onboarding experience by focusing on cultural values, such as putting employees in the shoes of the company's customers to better serve them.

"We need to touch people's hearts, not just their minds," Oldham said. "We need to do a better job of making people feel Stash and experience Stash, not just arrive at Stash."

Many of the frameworks that help managers connect with existing teams also help integrate new team members, Oldham added. Stash has tried team-building activities, such as group personality tests, so team members canbetter understand colleagues。

Given that Generation Z includes a great deal of diversity, Ally has been focused on what the next generation of talent looks like, Willis said. This has prompted the company's HR team to redouble efforts to create a psychologically safe environment that welcomes differences and understands the needs of diverse employees. At the same time, culture must meet new employees' expectations for how work gets done, he noted.

"It's not easy," Willis said of these expectations and their impact on culture. "As someone who sees himself as a culture ambassador and carrier, I still worry about the impact two years from now."

In an increasingly competitive market, employers need to clearly and compellingly articulate their employee value proposition, Martin said; "It has to go beyond salary. What is yourorganizational culturelike, and how do you communicate that to people who are interested in joining?"

This question is critical given Workhuman's finding that new employees onboarded virtually during the pandemic struggled and may return to their previous organizations, Martin said. She added this may indicate a need for deeper integration during and after the onboarding process.

Returning to recognition, Martin said employers can help new employees better understand organizational values by highlighting instances where they exemplify those values.