In today’s rapidly evolving business environment, transforming employee relationships is not just a managerial trend—it’s a necessity. With the drastic changes brought on by the pandemic, remote work, and the overarching impact of digital transformation, organizations are being challenged to rethink how they engage and support their employees. Despite the implementation of flexible schedules and remote work options, we still see record numbers of employees leaving their jobs. The question remains: why aren’t these strategies effective, and what must change for true transformation?
Addressing Employee Engagement and Turnover
High turnover rates and declining engagement are pressing concerns for organizations worldwide. Managers are left bearing the frustration caused by slow, often bureaucratic, organizational changes that fail to address the root of these issues. Adding to the complexity, employee mental wellness is declining at an alarming rate, with more employees reporting increased levels of stress and burnout over the past year.
Efforts to transform employee relationships must therefore begin with acknowledging this gap between employee needs and organizational actions. To foster genuine engagement, organizations need to understand the deep emotional and existential needs of their employees—moving beyond perks and benefits and addressing fundamental human desires.
A Shift in Employee Priorities: From Experiential to Existential Needs
The world of work has shifted. Traditional motivators like job security, benefits, and a comfortable work environment—while still important—are no longer enough. Employees are now seeking a sense of purpose and meaning in their work. They desire self-actualization, alignment with values, and fulfillment that goes beyond meeting business targets. Employers often invest heavily in improving employee and candidate experiences through surveys and engagement initiatives, but what’s needed now is a deeper focus: helping employees find their reason for being at work.
This shift can be understood through Abraham Maslow’s hierarchy of needs. While past employee engagement initiatives often focused on the lower tiers—such as safety, belonging, and esteem—today’s workers are looking for opportunities to fulfill their higher-level needs. They crave meaningful work, the ability to contribute to something larger than themselves, and the sense of belonging that comes from being part of a supportive, mission-driven community.
The Importance of Authentic Leadership
Effective leadership is the bridge that can connect employees’ needs with organizational goals. Leaders who are authentic, transparent, and empathetic are better able to foster connection and trust within their teams. They help employees feel seen, heard, and valued—key elements for improving engagement and transforming relationships.
A talent optimization framework can be particularly useful in aligning business strategy with people strategy. This approach encourages leaders to create an environment where employees feel genuinely connected to the organizational vision. Trust is at the core of this framework. Without trust, collaboration stalls, creativity is stifled, and productivity declines. Building trust involves cultivating a shared vision, fostering team identity, and ensuring psychological safety.
Expand the Circle: Layered Leadership
True leadership involves more than simply managing a team—it requires a layered approach that begins with leading oneself. Leaders must cultivate self-awareness, understanding their values, strengths, and areas for growth. This foundational level of leadership then allows them to lead others effectively, first in one-on-one relationships, and gradually expanding to leading teams and entire organizations.
Leaders at every level have a role to play in shaping and reinforcing the organization’s culture. Whether they lead small teams or entire divisions, their impact goes beyond the organization’s boundaries, influencing not only employees but also their families and communities.
Fairness, Neurodiversity, and Interconnectedness
Modern workplaces must be built on fairness and inclusivity, recognizing the diverse needs and perspectives of their workforce. Unfortunately, fear can lead to behaviors that undermine fairness, particularly in areas like resource allocation, recognition, and decision-making. Effective leaders actively work against this trend, ensuring that every employee receives fair treatment and equitable opportunities for growth.
Additionally, embracing neurodiversity is crucial for creating a culture of belonging. Every individual brings unique strengths and challenges to the workplace, and organizations that appreciate and leverage these differences are more likely to succeed. When employees feel valued for who they are, they’re more engaged, innovative, and committed to their work.
Building Trust and Managing Scarcity
The scarcity of resources—whether financial, temporal, or emotional—often challenges leaders. In times of scarcity, trust becomes even more critical. Leaders must make informed decisions about allocating limited resources while maintaining transparency and fairness. Trust-building requires intentional actions: creating a shared vision, fostering a cohesive team identity, encouraging cooperation, and ensuring everyone feels safe to express their ideas and concerns.
The scarcity mindset can also impact recognition and praise, which are vital for employee morale. In challenging times, leaders must be intentional about acknowledging individual contributions, ensuring that every team member feels appreciated and motivated.
Authenticity in Organizational Culture
A genuine culture is crucial for building strong employee relationships. If an organization’s culture is inauthentic—based on flashy slogans or false promises—employees will eventually see through the facade, resulting in high turnover rates and disengagement. Authenticity must be at the core of cultural design. It starts with leaders living the values they espouse and creating a workplace where employees feel comfortable being themselves. An authentic culture not only supports employees at work but also positively impacts their personal lives and their broader communities.
Reflecting Values in Work
One way to foster an authentic workplace culture is by aligning organizational values with the work employees perform every day. Leaders should engage employees in conversations about how their work reflects these values, encouraging them to identify areas for improvement. Using a well-known movie or book reference can make this exploration more relatable, prompting employees to consider how their work aligns with their personal values.
Continuous Learning and Individualized Leadership
Leadership is not a one-size-fits-all endeavor; it requires continuous learning and adaptation. Reflecting on my own journey—from a career in the military to a focus on psychology—I realized the importance of breaking through self-imposed limitations and seeking personal growth. Leaders must remain committed to understanding themselves, their motivations, and their areas for improvement. This commitment to self-awareness ultimately enhances their ability to lead others effectively.
Individualized leadership also requires leaders to understand and appreciate the unique needs of each employee. What motivates one person may not motivate another. By taking the time to understand these individual differences, leaders can tailor their approach to foster stronger relationships and improve overall engagement.
Involving Employees in Defining Values
To truly transform employee relationships, it’s important to involve employees in shaping the organization’s values and strategic direction. This approach helps ensure that values are not just aspirational but are actively reflected in everyday actions and decisions. Employees who have a say in defining these values are more likely to buy into them, leading to greater alignment between individual and organizational goals.
Leveraging Existing Culture for Transformation
Transforming employee relationships also involves building on the existing culture. Leaders should leverage what’s already working well while being open to change where necessary. Instead of blindly adopting the values promoted by popular business leaders, organizations should ensure that their values are aligned with their strategic goals. For instance, a community bank shifting toward a more growth-oriented business model may need to adjust its culture to reflect this new strategic vision.
Employee Fulfillment as a Key to Success
Focusing on employee fulfillment has far-reaching implications—not only for the individual but also for their colleagues, families, and communities. Fulfilled employees are more engaged, more productive, and more likely to contribute positively to their workplace and society. Supporting employees in finding fulfillment through personal and professional growth can lead to increased organizational success and a positive impact on the world.
Conclusion: Transforming Employee Relationships Through Leadership
Transforming employee relationships requires more than offering perks and flexible work arrangements. It requires authentic leadership, an understanding of individual needs, and a commitment to creating a workplace where employees find purpose and fulfillment. Dr. Matt Poepsel emphasizes the importance of self-awareness for leaders. Leaders who are in tune with their values and personalities can build genuine connections with their teams, fostering a culture of trust, growth, and fulfillment.
In times of change and uncertainty, leaders must not only guide their teams but also protect and serve them. By focusing on individualized leadership, authenticity, and employee involvement, we can create workplaces that not only thrive but also make a meaningful impact on the lives of all those connected to them. The journey toward transforming employee relationships is ongoing, but with the right approach, it can lead to a more engaged, satisfied, and successful workforce.