To build employee trust, lead with vulnerability and transparency in 2023

What's the world of work going to look like in 2023? It's nearly  impossible to answer with certainty, but if there's one thing that leaders can count on next year, it's employees telling them what they want. 

In a recent survey by human capital management software company Workhuman, nearly one-third of respondents anticipate employees being more vocal with leadership in the new year. Of the 1,000 full-time U.S. employees surveyed, many expressed optimism for the year ahead, with 41% of respondents anticipating work-life balance to improve in 2023. Still, 29% are expecting more mandates to return to their office desks.  

That's all putting pressure on organizations to strike a cultural balance and build a workplace that can drive both productivity and employee loyalty. There's no one way to achieve that goal, says Dr. Meisha-ann Martin, an industrial and organizational psychologist and the senior director of people analytics and research at Workhuman. 

Read more: As 2022 comes to a close, employees are still craving remote and hybrid work

Fom Martin's perspective, one of the biggest takeaways from recent years is that work can truly happen from anywhere, though she still sees companies grappling with how to choose between remote and in-person work. 

"We're actually seeing hybrid workers report the highest levels of burnout," Martin says. "And I think that's because they're code-shifting from environment to environment within a given week. And there's some stress that comes with that." 

Rather than assuming that hybrid setups create an appealing compromise for workers, Martin encourages employers to do the work to find the best system for their unique workforce. 

"I hear a lot of conversations about what the business needs, but the real conversation should be around what employees need," Martin says. "Because when employees get what they need, businesses get what they need. Every single way of working has advantages and disadvantages — the trick is to choose the way that works best for your employees."

According to Workhuman's survey, one-third of employees regretted working too much throughout 2022, and a quarter regretted not setting stronger boundaries with work. To better understand how employees are feeling about their jobs and workplace cultures, pulse surveys are a good place to start — but tech tools already being embraced at workplaces can provide additional and valuable insight, Martin says. As an example, she points to Workhuman's own workplace recognition software, which enables colleagues to celebrate one another's work on a digital platform. That's not just a valuable cultural tool, but passive data to learn from. 

Read more: 10 companies with the best work cultures in 2022

"The technology you're already using at work, you can scrape that data for sentiment," Martin says, encouraging employers to take particular note of any trends that may develop among remote workers versus in-person or hybrid workers. "We were using recognition messages to see how people were supporting each other, and that allowed us to extrapolate some needs. For example, we had a client whose sales team we learned needed more support adapting to a virtual sales cycle. That's valuable intel rather than just reverting to organizational surveys. Sometimes things are so fluid and fast, you don't even know what to ask." 

Though data can help organizations start to understand some of the challenges their employees are facing, that must be paired with human connection to make any impact within a company, Martin says. Whether working in remote or office settings, she encourages managers to have a baseline once-a-week check-in with their reports (and not to only ask for status updates about work projects), and stresses the value of modeling vulnerability. 

"I had a meeting with my team today, and I was like, listen y'all — I just woke up on the wrong side of the bed, just so you know," Martin says. "And that's not to get into the details of what's going on in my life or why I woke up on the wrong side of the bed, but it's a simple admission that lets people know the door is open for them to say similar things, if they're not quite feeling it, or if their toddler just threw a tantrum. And when I sent that message, a teammate responded and said, 'Same.' So it worked almost immediately." 

As businesses and leaders look to the year ahead, that vulnerability should ideally translate to organization-wide transparency. Fears of a recession are high — Workhuman research has found that 62% of workers are worried about losing their jobs in an economic downturn, and nearly half have taken on a side hustle, largely to prepare for economic and financial challenges. How an organization responds (and where they choose to trim costs) will impact employees' sentiment toward their workplace. 

Read more: 13 companies that expanded their benefits in 2022

Particularly when it comes to efforts around diversity, equity and inclusion programs, Martin says that employees will be watching to see how companies continue to chip away at their promises even if the economy takes an unfavorable turn. 

"We're a few years after the George Floyd murder, when all these companies were releasing statements about their commitments to diversity, and now here we are in present day, and  we're wanting to see organizations stick to these commitments and not run away when times get tough and they're cutting budgets," Martin says. "Help people understand what you can do and what you can invest in. Every employee wants to know that they matter to their organization, that they're seen as a human being and that their skills and capabilities are valued. But that often gets more involved for marginalized populations." 

Maintaining honest communication channels will not only boost employee sentiment, but best serve company needs as well, especially as the talent market continues to challenge hiring managers. 

"So many times, people leave an organization and only then realize how much the company valued them, when they're presented with counter offers and pleas to stay," Martin says. "Now that we may be entering a recession, employers think that employees don't have a choice. But employees always have a choice. So organizations should act accordingly."