Weekly Business Insights from Top Ten Business Magazines | Week 313 | Strategy & Business Model Section | 1

Extractive summaries and key takeaways from the articles curated from TOP TEN BUSINESS MAGAZINES to promote informed business decision-making | Since September 2017 | Week 313 | September 8-14, 2023

Some employees are destroying value. Others are building it. Do you know the difference?

By Aaron De Smet et al., | McKinsey & Company | September 11, 2023

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The pandemic has forced major changes in how, when, and where people work. It has also bedeviled employers. Due in part to new hybrid and remote-working models, companies are struggling to find objective ways to gauge employee effectiveness—a critical challenge as labor costs have increased and worker productivity has declined.

To address the problem, corporate leaders first have to grasp that their workforces are not monolithic when it comes to employee experience and that the tactics to increase performance require a more segmented approach. Leaders can then apply differentiated strategies to groups of employees that boost levels of satisfaction and commitment, performance, well-being, and, ultimately, retention and engagement.

The quitters: Headed for the door (or already gone).  Estimated around 10 percent of the workforce in a typical organization, the quitters are not necessarily the lowest performers in an organization, but they may be some of the least satisfied and committed. Eventually, those feelings can affect their performance and cause them to leave.  

The disruptors: Actively disengaged and likely to demoralize others.  Estimated to be around 11 percent of the workforce in a typical organization.  Of the six segments, the actively disengaged group has the potential for the largest negative influence. This is not necessarily because of their behavior but because of how an organization treats them, coupled with the perception of their peers.  These employees aren’t disruptive in the positive sense of accelerating change at an organization. Instead, they are productivity and energy vampires, sucking the motivation out of work and workers around them. They also create more work for others and can undermine morale—especially when companies issue blanket pay raises or rewards.  According to equity theory, solid performers lose motivation if they feel that others who are not pulling their weight receive the same rewards. 

The mildly disengaged: Doing the bare minimum.  Estimated to  be around 32 percent of the workforce in a typical organization.  Mildly disengaged workers, who report below-average commitment and performance levels, are neither satisfied nor actively disengaged and disruptive in a way that harms the organization. They do put in the time and effort to fulfill minimum job requirements, but they are not proactive, lagging behind in well-being and self-reported performance.

The double-dippers: A growing phenomenon.  Estimated to be around 5 percent of the workforce in a typical organization.  Double-dippers, who are uniquely dispersed along the satisfaction spectrum, are full-time salaried workers who hold two or more jobs simultaneously, likely without their employers’ knowledge. 

The reliable and committed: Going above and beyond.  Estimated to be around 38 percent of the workforce in a typical organization.  On the positive side of the satisfaction spectrum, this archetype represents the organizational core: reliable performers who execute on business-as-usual activities. 

The thriving stars: Creating value and elevating others.  Estimated to be around 4 percent of the workforce in a typical organization.  The thriving stars are the top talent in an organization: these are the rare employees who bring disproportionate value to the company. They achieve high levels of sustained well-being and performance because of a virtuous cycle of factors.

With hybrid patterns here to stay, executives should seek to provide the best possible experience regardless of working model, including offering structure and support around activities best done in person or remotely.

3 key takeaways from the article

1. Due in part to new hybrid and remote-working models, companies are struggling to find objective ways to gauge employee effectiveness—a critical challenge as labor costs have increased and worker productivity has declined.
2. To address the problem, corporate leaders first have to grasp that their workforces are not monolithic when it comes to employee experience and that the tactics to increase performance require a more segmented approach. 
3. McKinsey’s latest research identifies six distinct employee groups, or archetypes, across a spectrum of satisfaction, engagement, performance, and well-being. These workers labelled as: the quitters who headed for the door (or already gone), the disruptors who actively disengaged and likely to demoralize others, the mildly disengaged who are doing the bare minimum, the double-dippers  who are full-time salaried workers but hold two or more jobs simultaneously, the reliable and committed who are going above and beyond, and finally the thriving stars who create value and elevate others.

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Topics:  Leadership. Productivity