"Is Going to the Office the Answer?" How COVID-19 Changes 'Relationships' at Work [Jjinbit]

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Hyunjin Jeong] "Instead of designating specific days to spend together in the office, we will prioritize meaningful gatherings and create time for everyone to be together. We will continue to work in a highly collaborative manner."

Brian Chesky, co-founder and CEO of the global accommodation sharing company Airbnb, said this when announcing the full adoption of a remote work system at the end of April. At that time, he told employees they could work from anywhere in the world for up to 90 days a year, and that quarterly, they would hold about a week of team meetings, i.e., face-to-face social events. He viewed office attendance and social gatherings for building camaraderie differently. Additionally, by introducing a new flexible work system, he sought ways to collaborate to avoid disorder, planning collaboration sessions and social gatherings in advance to set schedules.

During the COVID-19 pandemic, one of the biggest concerns companies had regarding work methods was 'connectivity.' With the spread of remote and hybrid work and social distancing measures, employees working from home often did not know each other well, making collaboration difficult and hindering the formation of organizational culture. In particular, there were concerns that employees’ engagement and sense of belonging to the company would decline, negatively impacting performance. From the employees' perspective, feelings of isolation and emotional dissatisfaction at work increased, and new hires found it difficult not only to form new relationships but also to learn their jobs.

◆ Bonds Affect Corporate 'Productivity' and Employee 'Well-being'

Research shows that when bonds among employees are strong, there is more interaction and higher engagement, which ultimately leads to increased productivity. Global management consulting firm Accenture estimated in a report released this year that when employees feel highly connected to colleagues, supervisors, and their work, annual revenue growth rates increase by 7.4%. Another global consulting firm, McKinsey, found that employees who form networks and feel better connected with colleagues participate about 1.5 times more in work. Gallup, in a survey released on the 12th (local time), evaluated that low employee engagement causes productivity losses equivalent to 11% of global GDP, amounting to $7.8 trillion (approximately 1,200 trillion KRW), based on data from 112,312 businesses across 96 countries.

From the employees' perspective, working in a place where trust and belonging are based on more than just economic compensation leads to a sense of belonging, satisfaction through collaboration, and emotional well-being. Gallup consistently includes the question "Do you have a best friend at work?" in its employee engagement surveys for this reason. According to consulting firm Deloitte, during the COVID-19 period of prolonged remote work, 8 out of 10 Generation Z employees under 35 felt lonely, with increased levels of stress and anxiety. Although this reaction was strongest among Generation Z, reports are emerging across all generations about decreased belonging, loneliness, reduced engagement, and resulting mental health impacts.

◆ "Strengthening Existing Relationships Over New Connections"

COVID-19 made meeting others very difficult. According to a report titled "Network Effect: Rebuilding Social Capital and Improving Corporate Performance" released by McKinsey on the 2nd, very few respondents said their 'networks'?social connections inside and outside the workplace?expanded after COVID-19. In a survey of about 5,500 American male and female workers, only 14% said their networks had expanded post-COVID-19. Most respondents felt that internal workplace relationships strengthened more than external ones, such as industry contacts or clients.

Especially, less than half of employees said they made efforts to build networks after COVID-19. Among respondents, 28% said they tried to build new relationships, while 31% focused on strengthening existing ones. This means that even though building relationships was difficult, they concentrated on reinforcing existing connections. By industry, 53% of technology companies invested in strengthening existing relationships, whereas only 12% of public sector respondents said the same, showing differences based on technology access. By rank, about half of senior executives said they invested energy in network building, while only about 15% of regular employees reported making such efforts.

◆ Is the Office Worse Than Remote Work for Relationship Building?

Since workplace bonds weakened during COVID-19, solutions are needed. So, will returning to the office restore these bonds? Most companies have believed that spending long hours together in the office is important for building relationships among colleagues. Before COVID-19, employees typically met face-to-face, shared meals, talked, and built relationships while working in the office. This helped foster familiarity and good relationships, which were seen as beneficial for work.

Is it difficult to build bonds among employees in companies like Airbnb that are expanding remote work? Why does Airbnb prepare face-to-face social events instead of office attendance?

Consider this survey result. According to a survey conducted by Accenture of 1,100 executives and 5,000 employees across 12 countries including the U.S., U.K., and China, 42% of employees working face-to-face in the office said they were not well connected with colleagues. In the same survey, 36% of hybrid workers and only 22% of remote workers said they had weak relationships with colleagues. This suggests that going to the office is actually less effective for relationship building compared to hybrid or remote work. Elin Shook, Chief Leadership & Human Resources Officer (CLHO) at Accenture, who led the report, analyzed, "Culture does not come from space but from bonds between people." This means that the workspace itself is not the determining factor for how tightly connected an organization is.

As various opinions emerge about the role of place in employee relationship building, Accenture pointed out that corporate executives generally tend to overestimate connectivity by more than twice compared to employees. Accenture stated, "People are experiencing a new world not only in work but also in life," and "It is natural that fundamental ideas about how to connect with each other are changing significantly." Ultimately, they emphasized the need to properly recognize the current situation changed by COVID-19 and devise new ways for employees to communicate and bond.

There is still no definitive 'answer' to significantly improve workplace bonds. Experts stress that leaders and managers play a crucial role in forming bonds and increasing employee engagement because they are in a favorable position to build relationships with each member. Jim Harter, Gallup’s workplace management and well-being scientist, recently told CNBC that managers need to go beyond task-focused management and engage in continuous, meaningful conversations with employees, understanding their strengths and what happens in the mix of work and life. He also advised holding regular meetings to redefine employees’ roles and responsibilities to motivate work and creating opportunities for teams to interact and connect.

Editor's Note[Jjinbit] is short for ‘Hyunjin Jeong’s Business Trend’ and ‘Real Business Trend,’ a corner that showcases trends in corporate management such as organizational culture and HR systems. Based on analyses from foreign media and major overseas institutions that have not received much attention, we will deliver fresh and differentiated information and perspectives.