Company Culture & Workplace Wellness Amid COVID-19

As the world comes to terms with the ‘new normal,’ company culture faces a not-so-subtle shift. COVID-19 is forcing managers and CEOs to take a good hard look at their firms’ cultural priorities for the first time in a long time. And evidence suggests that many are surprised by what they see.

While markets struggle to recover from COVID shock, the timing of this cultural reawakening couldn’t have been worse for some. Most notably, large corporations are struggling to cope with this involuntary and almost unstoppable cultural shift. But we’ll talk more about that later on.

For now, let’s begin by looking at how the coronavirus pandemic is altering U.S. corporate culture for good. Chief among these alterations is the prioritization of human wellness and empathy in the workplace. Yet, the fact that it took a pandemic to instigate this change speaks volumes.

COVID – An Unprecedented Cultural Shock

It’s safe to say that organizations are facing an unprecedented shock to company culture amid COVID-19. Well-established norms are fast disappearing, and new work practices are taking their place. So let’s look at three of the most prevalent cultural trends among SMEs and large corporations alike.

1. Prioritizing Wellness in the Office

As mentioned earlier, the prioritization of workplace wellness is at the forefront of the new business culture. According to a study by Quartz, 37% of 2,100 respondents reported company culture had improved since the pandemic began. Yet, shifts in culture are as tricky to pinpoint as culture itself. So how can employees report improvement in culture?

For one thing, there’s an agreement that ‘people’ are the center of the organizational focus during the pandemic. The common thread that connects seemingly disparate companies is their commitment to employees and their needs. The most evident example of this is the option to work remotely from home.

Evidence from the same study suggests more companies are offering work from home options to employees to keep them on-board. Even though this reduces recruitment costs for businesses, the ultimate cultural impact is employee needs fulfillment. Employees reported increasing levels of empathy, kindness, generosity, and supportiveness within the company since the pandemic.

2. The Gender Split

Yet, it’s important to note that men reported a more positive change in the company environment than women. More than 50% of male workers reported a positive shift in company culture in the above study. However, only 28% of female workers said the same, especially in organizations with more than 100 employees.

A possible reason for this disparity is the role of women as caretakers in the home. Many women who reported increasing levels of stress in the organization during the pandemic were single mothers. On the other hand, recruitment figures show that more women are being hired during the pandemic. That’s because there is greater flexibility to work from home now than there was before the pandemic began.

3. Reinforcing Employee Sentiments

Despite the prevalence of workplace wellness during the pandemic, unhealthy cultures are being exposed for what they are. Employees who enjoyed an excellent working culture before the pandemic were more likely to say the same during the culture. On the other hand, employees stuck in poor corporate culture were more likely to complain of it during the pandemic.

There’s a valuable lesson for organizations and business leaders in these findings. Firstly, a poor culture will draw out negative feelings from employees at one point or another. Secondly, and more importantly, unhealthy culture, whether before or during the pandemic, is detrimental to business practices.

Indeed, the need of the hour is for leaders to be more transformational than authoritarian in their approach. That’s because employee sentiments dictate work ethic and cooperation. Poor employee sentiments regarding the business, environment, or employer will stifle productivity. That’s what the pandemic has shown. Those employees who felt stifled before the pandemic are absolutely suffocating now.

Organizational Response to Changing Company Culture

So how have organizations responded to this monumental shift in culture? Are they embracing the change and adapting to it? Or is the need for managers to retain control too strong to let the new corporate culture take hold? Let’s break down the answer.

SMEs vs. Large Corporations

Predictably, SMEs struggle to survive, while larger corporations will make it through in the long run. However, this is by no means indicative of their cultural adaptability or success. The sheer momentum, size, and resources of larger corporations are likely to see them through the pandemic. But the firms that shift cultural priorities towards workplace wellness will undoubtedly outstrip those that don’t.

That’s because markets are already showing signs of recovery come 2021. And once the economy recovers, firms that value their employees will gain loyalty. Not to mention, it’ll make it easier for employees to navigate their professional careers. So far, however, larger corporations are scrambling to rediscover their values again.

This is not to suggest that all firms are struggling. Amazon doubled its profits during COVID-19, and many other tech firms are also doing well. Yet, Amazon, too, can be held accountable for neglecting wellness in the workplace despite enjoying higher profits.

On the other hand, small and medium businesses were quick to shift their priorities when the pandemic began. That’s because owners of SMEs have their ears to the ground and are closer to the real workforce. As such, it is easier for SMEs to shift their culture as compared to larger corporations. However, many smaller businesses are shut down due to a lack of resources and investment. Those who survive can rely increasingly on their workforce to stick by them as long as they take care of their employees.

Nonprofit Organizations

In the opinion of some nonprofit leaders, the sector has fared well considering the constraints on financial resources. Yet, by and large, nonprofit organizations remain dedicated to treating their employees with kindness and empathy in a difficult time. It isn’t easy to talk about individual cultural shifts, yet the general trend is favorable in company culture. Nonprofit organizations employees are happier with company culture since the beginning of the pandemic. This fact points to the underlying employee sentiments being revealed in times of crisis for the company.

Company Culture Beyond COVID-19

Finally, we take a quick glimpse at the future holds for corporate culture in the United States after COVID-19.

1. Remote Working is Here to Stay

In all likelihood, working remotely will become increasingly popular as time goes by. That’s because both companies and employees are aware of the advantages of remote working. It frees up employees to engage with their work on their terms without utilizing extra company resources. As long as employers and employees can find a reasonable settlement, remote working will be the preferred option after COVID-19.

2. Emotional Intelligence can’t be Sidelined Anymore.

Companies that kept emotional Intelligence as a lesser priority for employees can no longer afford to do so. As mentioned above, empathy, kindness, and supportiveness are now more critical than ever. Not to mention, as remote working becomes more common, employees will need higher emotional Intelligence for teamwork and cooperation.

3. The Flight to Digital Looks Permanent

It looks like COVID-19 was the push many businesses needed to make the flight to digital. Technology is undoubtedly playing a huge role in keeping companies running through the pandemic. This reliance on technology is only likely to increase after the pandemic ends once and for all. That’s because digital infrastructure, although more complicated, is far superior to conventional organizational communication and support. Now that businesses have finally gone digital, they recognize its need to stay relevant and competitive.

4. Authoritarian Leadership Faces Extinction

Finally, autocratic and authoritarian leadership is on the brink of extinction. The one thing this pandemic has shown is the need to value human resources above all other resources. That’s why employees require and demand greater autonomy, respect, and empathy from their employers. Organizational leaders that fail to provide transformational leadership are doomed to fail.