Study finds almost 1-in-5 managers prioritise profit margins over company culture despite decline in staff retention
The UK economy is experiencing significant challenges due to a longstanding productivity crisis, with new national data from Rethinkly – the UK’s leading visualisation platform for workplace issues used by the NHS and IBM – uncovering the crucial link between company culture, profitability, and productivity. They found that almost 1-in-5 (19%) UK managers prioritise profit margins over company culture, in a climate where absenteeism amongst workers is at record level highs due to poor mental health. According to data from Be the Business, whilst companies are demonstrating high confidence, they lack the commitment to take action toward enhancing productivity. Andrew Jackson, CEO and co-founder of the virtual software argues that this deficit in conflict resolution support leads to unresolved tensions and negatively impacts productivity and employee morale.
According to Rethinkly, communication lies at the heart of the productivity crisis, with its research finding 28% of Brits state the inability to communicate within the workplace has the largest impact on their productivity. In line with this, a study by the Productivity Institute unveiled that business leaders who seek outside advice tend to have a more robust strategic plan and are better prepared for unforeseen events. Additionally, the report found that the adoption of technology could also serve to improve processes and ultimately boost productivity.
One example of this is Rethinkly’s innovative approach to improve workplace wellbeing by using new metaverse technology. The platform – which is used by the likes of the NHS and IBM – enables participants to anonymously enter a virtual world through the use of neutral avatars. From here, HR or other trained members of staff can hold sessions in which employees can use gestures and other forms of communication to express how they are really feeling in relation to their working life. This empowers staff to express emotions they otherwise might feel afraid to, and from here the necessary support can be provided to them.
“When looking to drive gains in productivity, the contract between manager and employee is an invaluable foundational relationship. To unlock collaboration and untapped potential, building a connection and clear pathways of communication within this core relationship becomes, in effect, business-critical. However, this process can only happen when both parties can communicate openly without unnecessary baggage or preconceptions.
“This requires managers to become more than just "overseers" but move towards a coaching role where they can become a catalyst for growth. When they can inspire and lead by example, focusing the team behind a shared vision, employees cease to be just contributors and become active participants.
“This can be transformative for organisations. Establishing a company culture that includes transparency and understanding as core values, it allows ideas to flow freely and exchange perspectives without fear or hesitation. Relationships start to be built based on trust instead of fear.
“The result is managers with clear insights into their team members' strengths, aspirations and challenges, enabling them to make educated choices on personal development routes, nurturing individual talents and encouraging professional growth. Managers start adopting empathy and active listening as essential skills for improving their emotional intelligence, a key indicator of leadership success. Team members are connected, fostering a sense of belonging and empowerment. The result is the reduction in staff turnover, improvement in well-being and ultimately happier, healthier workplaces – which all directly impact the bottom line.”