TheStateofGlobalWorkplaceCulture

in2024

2

KeyFindings

1.

Workplaceculturesarethebroadlysharedvalues,attitudes,behaviors,andnormsofacompany.Globally,organizationscreatefavorableculturesthroughfivefundamentalelements:

1.HonestandUnbiasedManagement

2.CivilBehavior

3.MeaningfulWorkandOpportunities

4.OpenCommunication

5.Empathy

2.

Globally,apositiveorganizationalculturegeneratesfinanciallybeneficialoutcomesbyattractingandretainingtalent.Forinstance,workersinpositiveorganizationalculturesarealmostfourtimesmorelikelytostaywiththeircurrentemployer.

?57%ofthosewhoratetheirorganizationalculturepoorlysaytheyareactivelyorsoonwillbelookingforanotherjob.

3.

Ratingsoforganizationalculturevarybycountry.Forexample,employeesinIndia,theUAE,and

Egyptgivemorepositiveratingsoftheirorganizationalculture,whileemployeesinJapan,France,andSouthKoreareportmorenegativeratings.

4.

Inadditiontoinadequatepay,workers’topreasonsforleavingamongthoseinpoororterribleworkplacecultureslineupwithattributesofanunfavorableworkplaceculture,includingpoormanagement,unfairtreatment,insufficientregardforemployeewell-being,andlackof

empatheticleadership.

5.

Globally,workerswhochoosetoremainintoxicworkculturestendtodosooutoffear,suchasfearoflosingtheirjobduringapossiblerecessionorfearoflosingtheirbenefits.

6.

Executivesaresignificantlymorelikelytoperceivetheirorganization’sculturemorefavorablythanindividualcontributors—atrendthatpersistsacrossgeographicareas.

7.

Employeeburnoutaffectsmorethanaquarterofemployeesgloballyandismoreprevalentinyoungerworkersandoneswhoareestablishingthemselveswithinanorganization(i.e.,thosewhohaveworkedattheircompanyforuptofiveyears).Burnoutisamajorfactorinemployeeturnover,ashalfofburned-outemployeesareactivelyorsoonwillbesearchingforanewjob.Thisisoverthreetimesgreaterthanthenumberof“engaged”employeeswhoshowlittlesignofburnout.

TheStateofGlobalWorkplaceCulture

Globally,workplaceculturesstandoutaspositive.Whenaskedtoratetheirorganization’sculture,56%of

workersrespondedthattheirculturewasgoodorexcellent,and26%rateditasslightlygood.Ontheopposite

end,10%respondedwithaslightlypoorassessment,and8%consideredtheirworkplaceculturepoororterrible.

HowWouldYouRateYourOrganization’sCulture?

GoodorExcellent56%

SlightlyGood26%

SlightlyPoor10%

PoororTerrible8%

3

4

DifferencesbyCountry

WorkplacecultureperceptionsaremorepositiveinIndia,theUAE,Egypt,andSaudiArabia,andlesspositiveinJapan,France,andSouthKorea.TheseresultsalignwithtrendsfrompastSHRMGlobalCulturestudies:

India,MiddleEasterncountries,theU.S.,andMexicohavescoredhigher,andJapan,France,andSouthKoreahavescoredlower.

Whatdifferentiatesworkplaceculturesinbetter-performingcountriesfromtheculturesinworse-performingcountries?Overthree-fourthsofworkersinIndiaandEgypthavebeenabletoestablishmeaningfulcareersworkingattheirorganizations.Thiscontrastswithonlyaboutone-thirdofworkersinGermany(35%)and

Japan(32%)who’vebeenabletoestablishmeaningfulcareers—animportantfactorindrivingpositiveworkplaceculture.

HowWouldYouRateYourOrganization’sCulture?

Global56%26%10%8%

IndiaUnitedArabEmiratesEgypt

SaudiArabia

Indonesia

UnitedStates

Mexico

Singapore

Australia

Malaysia

Germany

Canada

Austria

UnitedKingdom米

China

Brazil

SouthKorea

France

Japan

79%14%4%3%

69%20%7%4%

67%22%5%6%

67%22%5%7%

27%

5%2%

9%

66%

8%

61%

60%

60%

58%

56%

56%

55%

54%

53%

22%

20%

10%10%

24%

9%8%

19%

10%13%

28%

11%5%

24%

10%10%

22%

11%13%

28%

9%9%

21%

13%12%

11%5%

9%5%

52%32%

52%34%

45%

43%

18%

10%

11%

11%

27%

13%

31%

23%

33%35%

GoodorExcellentSlightlyGoodSlightlyPoorPoororTerrible

GlobalElementsofWorkplaceCulture

Analysisofglobaldatafromthisstudyrevealedfivekeydriversthatarethefoundationofpositiveworkplacecultures:

1.

HonestandUnbiasedManagement

Employeesexpecttheirorganization’sleadersandmanagementtobehonest,evenattheriskofhurtingbusiness.Badbehaviorshouldn’tbetoleratedatanyleveloftheorganization,andmanagementshouldlivebythestandardsitsets.

2.

CivilBehavior

Disrespectandlackofrecognitionforaccomplishmentsareindicatorsofnegativeworkplacecultures.It’scriticaltoavoidthetoxicitythatarisesfrominconsideratecommentsmadebymanagersandotheremployees,keepinginmindthatthiscanincludemicroaggressionssuchasmistakingothersasmorejuniorthantheiractualroleinanorganization.

3.

MeaningfulWorkandOpportunities

Recognizingafutureandasenseofdirectionwithinanorganizationenablesemployeestoacceptandsupporttheculture.Eventhemostpositiveworkculturewillsufferwhenemployeesdonotfeeltheir

workismeaningfulormakesanimpact.Therefore,whenemployeesfindtheirworktobemeaningfulandseeopportunitiestogrowtheircareerorlifegoalswithinthecompany,itintensifies

theircommitment.

4.

OpenCommunication

Fosteringanorganizationwhereemployeescansharetheirexperiencesandselves

throughcandidandhonestconversations(withoneanotherandwithmanagers)canplayastrongroleincreatingasharedtrustthatiscriticaltoapositiveculture.

5.

Empathy

Aworkplacethatfostersempathyamong

itsemployeescontributestoapositive

culture.Empathy,theabilitytofeelor

understandanotherperson’sexperiences

fromthatperson’sframeofreference,canhelpimproveanemployee’sabilitytofeel

valuedandtoknowtheycansafelyexpressthemselvesinanopenandhonestmanner.Whenemployeesaretreatedwithempathyatwork,theyaremorelikelytofeelvalued,strengtheningtheirconnectionswith

oneanother.

5

Thefollowingfactorsarethecoredriversofworkplaceculture4:

Civil

Behavior

Open

Communication

Honestand

Unbiased

Management

Managementishonestwithemployees

Managers

addressbadbehaviorontheteam

Managersleadbyexample

Employees

canprovide

feedbackaboutmanagement

withoutfearofretaliation

Empathy

Meaningful

Workand

Opportunities

Employeesfeelcomfortable

engagingin

candid/honestconversationaboutwork

topicswithcolleagues

Candid/honestconversations

withcolleagues

Candid/honest

conversationwithmanagers

Allemployees

aretreatedfairly,regardlessof

gender,race,age,religion,orsomeotherpersonal

characteristic

Empathetic

managersareconsidered

tobebettersupervisors

Empathetic

employeesare

considered

betterperformers

Employees

understandhowtoadvancetheircareerwithintheorganization

Employeeshaveopportunitiestogrowtheircareer

Absence

ofnegative

commentsaboutsomeone’s

Employeesfeeltheircareeris

meaningful

identity

Absenceof

inconsiderate

orinsensitive

treatmentamongco-workers

Absenceof

inconsiderateorinsensitivetreatmentbymanagers

Employeesdonotmistake

othersfor

someone

morejunior

4DriversweredeterminedthroughExploratoryFactorAnalysis.

6

7

Furtherunderstandingofthefivekeydriversarisesfromthelistsofcountrieswithstrongerassociationswiththerespectivefactors.

HonestandUnbiasedManagementisstrongestinAsiancountries,suchasIndonesia,Malaysia,andJapan.

CivilBehaviorisstrongerinEuropeanandNorthAmericancountries,suchasMexico,Germany,

andCanada.

DevelopingmarketssuchasIndia,Indonesia,

Egypt,andBrazilaremorelikelytorate

MeaningfulWorkandOpportunitieshigher.

OpenCommunicationtendstobestrongerinsomeEuropeancountries(Austria,France,andGermany)alongsideIndiaandAustralia.

Empathytendstohavestrongerassessmentsinthesamecountrieswheremanagementgetsmorepositiveratings:China,Indonesia,and

Malaysia(withBrazilmakinganappearanceinthetopfive).

Honestand

Unbiased

Management

Civil

Behavior

Meaningful

Workand

Opportunities

Open

Communication

Empathy

Indonesia

Mexico

India

Austria

China

Malaysia

Germany

Indonesia

France

Brazil

Japan

IwlCanada

二Egypt

Germany

Indonesia

China

UnitedStates

Brazil

India

Malaysia

Egypt

France

SaudiArabia

Australia

Egypt

It’snoteworthythateachculturalelementholdssimilarsignificanceinfosteringapositiveculture.Therefore,apositiveculturecomesfromaddressingallaspects,balancinghonestmanagementandfosteringcivilbehaviorwhilenotcompromisingthemeaningfulwork,career,andinterpersonalrelationshipneedsoftheindividual.

Furthermore,countriesthatscorehighlyonthedimensionofMeaningfulWorkandOpportunities(India,

Indonesia,Egypt,Brazil,andSaudiArabia)arealsocountriesthatscorehighlyonHofstede’sPowerDistancemeasure.Powerdistanceisdefinedastheextenttowhichthelesspowerfulmembersofinstitutionsand

organizationswithinacountryexpectandacceptthatpowerisdistributedunequally.

8

WhyCultureMatters

Workplacecultureisacriticalmeasureofan

organization’sworkforce,fromseniormanagementtofront-lineemployees.

Leftunchecked,abadworkplacecultureleadsto

loweremployeeproductivityandgreaterturnover,

whichcanultimatelyeatawayatanorganization’s

bottomline.Accordingtoa2022SHRMstudytitledTheGreatResignation:AnAnalysisoftheEmployeeExperience,morethan1in5U.S.workers(21%)quittheirjobsduetoworkplacecultureorpolitics1

Workplacesthatdonotpromoteapositiveworking

environmentcanexperiencetangiblefinancial

lossesthatcouldotherwisebeavoided.Forexample,workerswhosaytheirmentalhealthisharmedat

workreporta37%increaseinabsenteeism,an18%reductioninproductivity,anda60%increasein

workerrors.2

Infact,theSHRMQ32024CivilityIndexfoundthatU.S.workerswhohavepersonallyexperiencedorwitnessedincivilityatworktakeanaverageof1.6daysoffpermonthtoavoidincivility.3

Apositiveculture,ontheotherhand,leadsto

greateremployeeengagement,loyalty,and

retention.Amongemployeesratingtheir

organization’scultureasgoodorexcellent,just

15%saytheyareactively(orwillsoonstart)lookingforanewjob.Thisincreasesto57%amongthose

employeeswhoratetheircultureaspoororterrible.

GLOBALLY,

25%OFEMPLOYEESAREACTIVELYSEARCHING

FORANEWJOB

ORWILLSOONSTARTLOOKINGFORONE.

1TheGreatResignation:AnAnalysisoftheEmployeeExperience,SHRM,2022.

2HowToxicWorkplacesAffectEmployees,Finances,andWell-Being,StraitsResearch,Dec.18,2023.

/statistic/impact-of-toxic-culture-on-employee-turnover-and-well-being

3SHRMQ32024CivilityIndex

,October2024.

9

It’sworthnotingthatglobally,workplacecultureisconsistentlyrelatedtokeyoutcomesofjobsatisfactionandjobloyalty,thoughitisparticularlystronginsomecountries.Forinstance,inBrazil,only8%ofrespondentsinagoodorexcellentworkplaceculturearelookingforanewjob/opportunity,comparedto15%inall19countriesstudied.Additionally,69%ofBrazilianrespondentsinapoororterribleworkplaceculturearelookingforanewjob/opportunity,comparedtoonly57%oftotalrespondentsinthisgroup.ThisrelationshipbetweencultureandintenttoleaveisstrongestinCanada,Mexico,andBrazil.

CultureKeytoRetention,withStrongerImpactinCertainCountries

%ofemployeeswhoareactively(orwillsoonstart)searchingforanewjobbyculturerating.

0%10%20%30%40%50%60%70%80%

15%

Global

57%

12%

12%

Canada

Mexico

Brazil

61%

62%

8%

69%

GoodorExcellentPoororTerrible

Notonlyaretheymoreloyal,butemployeeswhoratetheirorganizationalculturehighlyarealsostrong

promotersoftheirorganizationtofriends,family,andotherslookingforanewjob.Over8in10employees

atorganizationswithapositiveculturesaythey’relikelytorecommendtheirorganizationtopeoplelookingforajob.Conversely,foremployeesatorganizationswithunfavorablecultures,only4%saytheyarelikelytorecommendtheirorganizationtopeoplelookingforajob.

EmployeesinGoodorExcellentCulturesMoreLikelytoRecommendTheirOrganization

%ofemployeeswhoarelikelyorverylikelytorecommendtheorganizationtosomeonelookingforajobbyculturerating.

0%10%20%30%40%50%60%70%80%90%

Global

4%82%

GoodorExcellentPoororTerrible

Moreover,employeesaremorelikelytofeelengagedatworkwhentheyratetheirorganizationalculture

positively.Globally,83%ofemployeesingoodorexcellentculturessaytheyaredeeplymotivatedtodeliverhigh-qualitywork,comparedto45%inpoororterriblecultures.

Therefore,astronglypositiveculturefostersemployeeretention,engagementandloyaltywhileservingasakeydifferentiator,attractingtoptalentseekingnewopportunities.

10

TopReasonsEmployeesStayorLeaveGlobally:

TheRoleofWorkplaceCulture

Globally,thereasonsthatemployeesgiveforstayingwithordecidingtoleavetheircurrentemployer

alignwiththeglobalelementsofworkplaceculture.Individualswhoratetheirorganization’sculture

poorlyandarecurrentlylookingtoleavecitepoormanagement,unfairtreatment,lackofempatheticleadership,andinsufficientregardforemployee

well-beingastopreasonstoleave,inadditiontoinadequatepay.

Forthosewhoratetheirorganization’sculture

positively,however,thetopconcernsbesidespay

areinsufficientopportunitiesforcareergrowth,

fewopportunitiesforprofessionaldevelopment,

inadequatebenefits,andlackofworkplaceflexibility.

TopReasonsforSeekingtoLeave

AmongThoseinPoororTerribleCulture

Poormanager

Unfairtreatment

Inadequatepay

Lackofempatheticleadership

Insufficientregardforemployeewell-being

54%

54%

54%

47%

47%

38%

29%

24%

21%

20%

AmongThoseinGoodorExcellentCulture

Inadequatepay

Notenoughopportunitiesforcareergrowthandupwardmobility

Notenoughopportunitiesforlearningandprofessionaldevelopment

Inadequatebenefits(e.g.,retirement,medical,dentalorother)

Lackofworkplaceflexibility

Likewise,whenwelookatreasonsemployeesstaywiththeircurrentorganization,therearesignificant

differencesbetweenemployerswithunfavorableculturesandemployerswithpositivecultures.Among

employeesatorganizationswithpositivecultures,fairtreatmentandjobsecurityarethetopreasonsfor

employeeschoosingtostay.Flexibility,organizationalculture,andgoodmanagerswerealsokeytoretentionforemployees—surpassingcompetitivepay!

Meanwhile,employeesatorganizationswithunfavorableculturescitefewerreasonsforstaying.

TopReasonsforSeekingtoStay

AmongThoseinPoororTerribleCulture

Jobsecurity

Idon’twanttoriskleavingduringapossiblerecession

Competitivepay

Workplaceflexibility

Goodbenefits(e.g.,retirement,medical,dental)

47%

36%

23%

27%

16%

AmongThoseinGoodorExcellentCulture

55%

55%

Fairtreatment

Jobsecurity

52%

Goodorganizationalculture

50%

50%

Agoodmanager

Workplaceflexibility

11

Globally,IndividualContributorsandExecutivesViewTheirOrganizationalCulturesDifferently

Whenweexamineorganizationalratingsacrossjoblevels,weseesignificantgapsbetweenlower-levelandmoresenioremployees.Forexample,executives(82%)aresignificantlymorelikelytoratetheircultureas

goodorexcellentthanindividualcontributors(47%).

ExecutivesMoreLikelyToRateTheirCultureasGoodorExcellent

Cultureratingbyjoblevel.

CEOorpresident

C-suiteofficer(includingCHROandCOO)

VP(includingseniorandassistant/associateVPs)

Senior/managing/executivedirector

Director(includingassistant/associatedirectors)

Managerorsupervisor

Individualcontributor(notamanagerorsupervisor)

86%6%7%1%

77%14%6%2%

73%20%5%2%

68%22%6%3%

62%23%10%5%

59%24%10%7%

47%30%12%11%

GoodorExcellentSlightlyGoodSlightlyPoorPoororTerrible

12

ThisgapisgreatestinChinaandEgyptwhilelowestinIndiaandtheUAE.

JobLevelCulturePerceptionGapsVaryAcrossCountries

%ofemployeeswhoratetheirorganizationalcultureasgoodorexcellentbyjoblevelacrosscountries.

38%

45%

31%31%31%

25%27%27%28%

8%10%

84%

82%

80%82%

79%80%

82%

74%

76%

67%

72%

65%

64%

55%

54%53%

51%45%

42%37%

34%

39%

AustraliaSaudi

EgyptChina

UnitedArabEmirates

IndiaUnited

States

Brazil

France

SingaporeMexico

Arabia

Individualcontributor(nonmanagers)VPs,C-suite,andCEOsDIFF

13

SpotlightonBurnoutandEngagement:

AGlobalPerspective

Aslabordemandremainshighandemployeesareaskedtoaccomplishmoreintheirroles,arisingissueis

employeeburnout.Collectively,morethanaquarterofworkers(30%)saytheyareburnedout.Thisgroup

saystheyleaveworkfeelingexhausted(61%),sacrificetheirpersonallifeforworkdemands(52%),andfeeltheamountofworktheiremployerexpectsisunreasonable(44%).Workerswhoareburnedoutsufferfromlowtrustoftheirmanagersandorganizationalleadership:Just28%ofburned-outemployees(comparedwith60%of

50%

areactivelysearchingforanewjob/opportunityorwillsoonstartlookingforone.

30%

BurnedOut

33%

areactivelysearchingforanewjob/opportunityorwillsoonstartlookingforone.

36%

Disengaged

15%

areactivelysearchingforanewjob/opportunityorwillsoonstartlookingforone.

36%

HighlyEngaged

engagedemployees)alwaystrusttheirmanager,and44%(14%ofengagedemployees)believetheirleadershipwouldlietoemployees.Furthermore,overone-third(36%)saytheydonothaveopportunitiesforcareergrowth,whichisthreetimestherateforengagedemployees(12%).5

Thisgroupleavesworkfeelingexhausted,has

sacrificedpersonallifeforworkdemands,and

findstheirorganizationexpectsthemtocompleteanunreasonableamountofwork.Theyhavelowsatisfaction,andone-halfthinkaboutleavingtheircurrentorganization.

Thisgroupexpressesfewercomplaintsabout

theirworkloadandpersonalsacrificesfortheir

currentorganization.However,aminorityare

satisfiedatwork,andtheyfindtheiremployertoshowlowconsiderationofemployeeneeds.

Thisgroupishighlysatisfiedandfindstheir

organizationstobesupportiveofastrongcultureandtheneedsoftheiremployees.

5Thethreelevelsofemployeeburnout/engagementweredeterminedthroughlatentclassanalysis,whichclustersrespondentsbasedonsimilarresponsestoasetofquestionsposedregardingburnoutandwork/lifeintegration.

14

Workerswhoaredisengageddon’treportlevelsof

dreadgoingtowork,feelingexhaustedbywork,or

feelingirritableathomethatareashighasburned-

outworkers,buttheyarealsonotfeelingassatisfiedashighlyengagedworkers,whichputsthematrisk

ofburnout.Only35%ofdisengagedworkerssaytheirorganizationencouragesemployeestosethealthy

boundariesbetweenworkandlife,comparedto75%ofhighlyengagedworkers.

What’smore,engagedemployeeshavean

exceptionallypositiveviewoftheirorganization’s

culture—87%ratetheircultureasgoodorexcellent—whilejust34%ofburned-outemployeesviewtheir

cultureinasimilarmanner.

Engagementhasastrongrelationshipwithageandexperience.Engagementislowestamongyoungergenerationsandhigheramongoldergenerations.

Additionally,burnoutgrowsduringanemployee’sfirstfiveyearswiththeirorganizationand

declinesthereafter.

EngagedEmployeesHaveanExceptionallyPositiveViewofTheirWorkplaceCulture

%ofemployeeswhoratetheir

organizationalcultureasgood

orexcellentbyengagementlevel.

87%

50%

Disengaged

34%

BurnedOut

Engaged

OlderGenerationsAreMoreEngaged

%ofemployeeswhoareburnedout,disengaged,andengagedbygeneration.

Engaged

Disengaged

BurnedOut

28%

41%

32%

33%

37%

30%

35%

34%

31%

49%

27%

23%

GenerationZ

b.1997-2012

Millennials

b.1981-1996

GenerationX

b.1965-1980

BabyBoomers

b.1946-1964

15

Spotlighton

DemographicDifferences:AGlobalPerspective

DifferencesAcrossGenerations

AcrossBabyBoomers,Millennials,andGenerationZ,perceptionsoforganizationalculturearefairlysimilar(around58%),thoughGenerationX(born1965-1980)tendstorateitsorganizationalcultureslightlylower,at51%.

However,examiningthereasonsforgenerations

toremainattheirorganizationrevealsadditional

differences.Asthenewestmembersofthejob

force,GenZemployeesfocusmoreonmanagers

andmanagement,citingfairtreatment(50%),agoodmanager(50%),andjobsecurity(48%)astopreasonstostaywiththeiremployer.

ForMillennials,jobsecurityisslightlymoreimportant(51%).AsMillennialsareatthestagewheremanyareraisingchildrenorplanningtogrowtheirfamilies,

itisunsurprisingthatworkplaceflexibilityisalsoa

leadingreasontostaywiththeirorganization(45%).Theimportanceoffindingmeaningfuljobsand

opportunitiesishighforbothMillennialsandGenZers,with44%selectingopportunitiesforcareergrowthorlearningandprofessionaldevelopment.

GenXers,sandwichedbetweenBabyBoomersand

Millennials,arepoisedtotakethereinsofleadershipasBabyBoomersretire.Itgoestofollowthatover

half(54%)placejobsecurityasthetopreasonthey

arestayingwiththeiremployer,andalmostone-fourth(23%)selectedtheriskofleavingduringapossible

recessionasareasontostay.

Theoldestgenerationinourstudy,BabyBoomers,isonthecuspofretirement,ifnottherealready.

Forty-fourpercentcite