In the third article of our CHRO series, Kate McCormack, our Head of Assessment & Development, explains why driving unity and connecting has become chief among HR’s priorities this year.
Bringing workforces together in united organisational cultures is a critical concern for CHROs in Ireland. Indeed, Gartner lists it among the top five priorities for CHROs in 2024, alongside leadership development, change management, and employee upskilling. Yet the road to unity is paved with numerous challenges. CHROs must now contend with an employee mental health crisis, the rising cost of living, and the disconnection often created by hybrid and remote work. At the same time, external factors including political divides and economic disruptions further complicate efforts to foster a cohesive work environment.
Financial pressures are significantly impacting employee morale, with 19% of Irish employees struggling to pay monthly bills, leading to heightened stress and reduced engagement. The problem is exacerbated by high workloads, with nearly a quarter of Irish employees reporting their workloads as unmanageable, contributing to burnout and decreased job satisfaction. What's more, Mental Health Ireland reports that the country has one of the highest rates of mental health illnesses in Europe, with 27% of employees working while ill due to the need to meet deadlines and client demands. In such an environment, stress and burnout reduce communication and collaboration, fostering resentment and disengagement among team members.
CHROs and other HR leaders must contend with a range of obstacles in their attempts to unite their workforces. However, achieving this unity could be the answer itself, resolving many of these issues while significantly enhancing their organisation's competitiveness.
Could achieving a united workforce be the answer?
Developing a collective sense of purpose is a fundamental component of workforce unity. Building a culture where employees feel valued and connected to the organisation’s mission, significantly reduces stress levels. Moreover, employees who understand their role in the bigger organisational picture have higher engagement, higher resilience, and a reduced risk of burnout. United cultures are also more open, demonstrating high transparency and authentic communication. Downstream is an environment where mental health is openly discussed and addressed. When employees feel part of a cohesive and caring community, their mental health can improve, leading to higher productivity and job satisfaction.
For CHROs, the benefits of focusing on unity are borne out in research: employees who report being connected to the company’s mission, also report lower stress levels and higher overall satisfaction. While a sense of belonging at work is linked to a significantly lower risk of mental health issues among employees.
United workplaces are more trusting
A cohesive and unified workplace, characterised by a sense of camaraderie and shared goals, develops an environment where trust can flourish. When employees feel connected to their colleagues, understand their colleagues’ motivations, and are aligned with the organisational mission, they are more likely to trust one another and their leaders. Trust encourages open dialogue and the sharing of ideas without fear of judgment or retribution.
In a high-trust environment, employees feel more comfortable sharing feedback, and concerns, leading to greater mutual understanding. What’s more, they are more likely to take calculated risks and engage in creative problem-solving, knowing their contributions are valued and supported. Highly united workplaces prioritise collaboration and teamwork. Working closely together on projects and achieving common objectives generates trust as employees depend on each other's contributions to succeed. This in turn fosters empathy and understanding among employees. They are more likely to consider and respect each other's perspectives, leading to stronger interpersonal relationships and trust.
Higher trust workplaces are star performers
CHROs who build high-trust organisations see productivity and engagement gains, more loyal customers and repeat business, and greater overall organisational performance. Deloitte research shows businesses perceived as trustworthy can perform up to four times better than their competitors. When employees have confidence in their workplace, their motivation to work increases by nearly 80%, and customer loyalty soars, with an 88% higher likelihood of repeat business from trusting customers.
Likewise, research published by Harvard Business Review shows employees at organisations where trust is a core component experience 74% less stress and have 106% more energy at work. These employees also take 13% less sick days, show 76% greater job engagement, enjoy 29% higher life satisfaction, and suffer 40% less from burnout. Additionally, these trusted environments see a dramatic reduction in staff turnover, with voluntary departures at just 10%, far below industry averages.
The future CHRO: Organisational unifiers
Top CHROs are now unifiers adept at developing and embedding purpose into the very fabric of organisations, from the organisational mission through to individual roles. They align personal and professional goals, excel at identifying and supporting future leaders who are people-centric unifiers, and bring workforces together on a unified journey, using this cohesion to nurture trust.
Odgers Berndtson, a local executive search firm with offices in over 30 countries, offers unparalleled access to an international network of high-performing CHROs. This enables us to identify, assess, and appoint HR leaders who are at the top of their game and excel at building united and trusting workforces. For more information or help with your next HR leadership appointment, get in touch: mark.odonnell@odgersberndtson.com