Nonstop disruption. We have all lived through it the past several years: a global pandemic, geopolitical and economic instability, and the rise of new technologies such as generative AI (gen AI). This increasing pace of change, coupled with the anxiety of prolonged uncertainty, has created a situation in which companies can’t afford to keep doing business as usual. Indeed, workers have sent a clear message that they are disengaged to varying degrees and often burned out. They continue to question where, how, and why they work.

A recent McKinsey survey of a global sample of workers found that only about 4 percent in a typical organization reported high levels of sustainable engagement and productivity that in turn brought disproportionate value to a company. We call these individuals “thriving stars”.

 

 

Thriving is more than being happy at work or the opposite of being burned out. Rather, one of the cornerstones of thriving is the idea of positive functioning: a holistic way of being, in which people find a purposeful equilibrium between their physical, mental, social, and spiritual health. Thriving is a state that applies across talent categories, from educators and healthcare specialists to data engineers and retail associates.

McKinsey research has found that thriving stars achieve high levels of sustained performance because of multiple factors: they are adaptable and resilient, they have found meaning and purpose at work, they achieve work–life balance and flexibility, and they experience psychological safety and trust from leaders, allowing them to create the same for their own teams.

The analysis also revealed that these employees flourish in an environment where autonomy and flexibility are valued by the organization. This indicates that many traditional practices and policies that companies use today may not create a thriving workforce at scale. These traditional practices include measuring productivity by inputs, outputs, and activities rather than by supporting outcomes and results; mandating in-person time; and focusing interventions on corrective action instead of on accelerating performance.

To build a thriving culture, companies can rethink policies, practices, and rituals through five actions.

  1. Rewrite the rules on workforce flexibility. Many organizations have made strides when it comes to offering workforce flexibility since the pandemic forced new rules upon much of the business world. Even so, leaders can look for more ways to infuse thoughtful flexibility into the workweek beyond work-from-home and hybrid options.
    • At the company level, there is an opportunity to implement core days—that is, designating a certain number of days or specific days during the week when employees are expected to be online, with flexibility on “off days” to finalize work.
    • At a function or team level, rather than mandating in-office days, the expectation can be based on the degree of coordination and interdependence of work, or “teaminess.” Some groups may have a greater degree of teaminess, while other teams and functions may have more defined swim lanes and clearer handoffs.
    • On an individual level, employees should be encouraged to optimize for their particular rhythms outside of core team hours.
  2. Rethink the collaboration model. The best collaborative models augment thriving by creating a team environment that offers clarity in three areas: the problem the team is trying to solve, how the team knows when it’s successful, and how to work together to get there.
  3. Emphasize performance coaching. Just as agreed-upon norms and practices allow teams to thrive, so do clear expectations for individual employees. Those include guidance on how the outcome of their work is measured. A strong performance management system sets accountability metrics that are consistent and equitable. Employees should have stretch goals they can work toward with clear, quantifiable, objective, and holistic metrics that show whether they are meeting those expectations. If 80 to 90 percent of the workforce is meeting performance expectations, these goals are probably too easy.
  4. Create opportunities to practice and train, not just to perform. In practice mode, people can expand their comfort zones to be bolder, take more calculated risks, and be more innovative—all of which are critical to learning and professional development. When leaders offer an environment where employees feel safe to speak up, to disagree openly without repercussions, and to show up authentically, their teams are more likely to be productive, creative, and innovative.
  5. Kick the meeting habit and build in time for recovery. To build thriving teams that can tackle problems effectively, it’s important to create the space for employees to think critically, get the work done, and have time to recover. Unfortunately, at many organizations, meeting requirements have become a roadblock to creativity and real productivity. Can information instead be passed along through quick interactions or an email?

In this postindustrial digital era, organizations must shift from rewarding traditional forms of productivity—time spent, output recorded—to recognizing impact and outcomes. Until recently, the steps required were slow and evolutionary for most companies. But now, with the pandemic and the advent of gen AI, this evolution can turn into a revolution that spurs employees and organizations alike to grow and thrive.

 

References:
McKinsey (2024, May 8) Jacqueline Brassey, Aaron De Smet, Emily Field, Taylor Lauricella, Brooke Weddle: To Defend Against Disruption, Build a Thriving Workforce