The number one reason for employee turnover is burnout. However, there could be an umbrella of reasons such as exhaustion, lack of motivation, mismatch of workload with compensation, etc. While burnout is not an official medical condition, medical experts believe that other medical diagnoses, such as depression or anxiety, lead to burnout.
In an organizational structure, employers are results and profit-driven. And rightfully so. After all, results and profits pay everybody’s salaries. But most of the time, the higher up you are in the employment hierarchy, the more detached you are from the reality of the levels below you. That’s why it’s high time to reevaluate your organizational structure and focus more on how to motivate employees sustainably.
What Is an Organizational Structure?
An organizational structure is a system that clearly outlines and defines how roles and functions are divided, allocated, coordinated, and supervised. A solid and transparent structure is the foundation of a successful brand and organization. Regardless of their rank and position, employees have a clear understanding of what their roles are and how to achieve their respective responsibilities.
The Different Organizational Structure Styles
There are eight definite and official styles of organizational structure that most businesses abide by. Take note that these defined organizational structures were created and implemented decades and decades ago. And like all things, structures are meant to evolve to adapt to societal and economic demands.
- Hierarchical
- Flat or horizontal
- Matrix
- Functional
- Product
- Customer
- Geographical
- Network
Thankfully, these organizational structures are pretty straightforward to understand their meaning as their names imply. Hierarchical organizational structure means the chain of command goes from the top to the bottom and pushes employees to the same level to form a camaraderie. Customer organizational structure divides the organization into specific groups based on the customer’s needs, like the housekeeping department, food and beverages, or front office in the hospitality sector.
But, as you’ve noticed, none of these structures is employee-centric, meaning focusing the bulk of an organization’s objectives, goals, vision, mission, etc., in fortifying its employees’ welfare. Let’s cover that next.
Employee-Centric: Why Isn’t It an Organizational Structure?
The structure of an organization plays a crucial role in shaping its culture. So while there might not be an employee-centric organizational structure per se, it does not mean that organizations are not employee-centric. That might be a head-scratcher at first read, but hear this out.
There’s a sort of awakening that happened during the last two years in the employment industry and process. With other key factors at play, applicants and employees alike developed a stronger sense of worth and value. The COVID pandemic being the critical trigger of this shift, employees are struggling to fill up vacancies as they adjust to applicants’ newfound “demands.”
From compensation that justifiably matches applicants’ skillset, more paid leaves, and a more flexible schedule for a better work-life balance, applicants walkout from interviews as quickly as they walked in. It’s no longer about what an applicant can do for the company, but instead, it’s about what the company can offer the applicant. It’s not always the monetary aspect, although it will be hypocritical to say that it’s not a huge factor.
A thriving culture attracts top talents. Company culture is the essence of an organization. The CEOs or managers do not dictate it; it’s what develops over time from its employees. When an organization fosters an environment that encourages open communication, transparency, creativity, innovation, and camaraderie, you bet that employees will develop a strong and positive culture. For example, take a look at Google and Facebook’s culture. Whether for an internship or a full-time position, applicants flock to get a spot in one of their open space office hubs.
And if top talent is not a reason enough for organizations to implement an employee-centric structure, these will definitely be a bonus:
- An employee-centric structure promotes and increases productivity.
- An employee-centric workplace lowers turnover rates.
- An employee-centric workplace drives fresh ideas and innovation.
- Happy employees attract more customers.
- Employees develop a sense of ownership.
It pays to cultivate your employees’ sense of worth, value, and overall well-being. It costs less to invest in an organization that employees want to be in than having to train new hires all the time. When an organization puts its employees first genuinely, the employees are guaranteed to reciprocate the gesture.
In the words of Simon Sinek,
Studies show that over 80 percent of Americans do not have their dream job. If more knew how to build organizations that inspire, we could live in a world in which that statistic was the reverse—a world in which over 80 percent of people loved their jobs. People who love going to work are more productive and more creative. They go home happier and have happier families. They treat their colleagues and clients, and customers better. Inspired employees make for stronger companies and stronger economies.