Organisations emerging from lockdown will need to make many changes as they adjust to the ‘next normal’. Our 35+ years working with organisations has reinforced for us how critical it is to address the both rational AND emotional elements of the change process.
In the coming weeks and months, organisations will need to use emergent thinking and best practice techniques to successfully plan, communicate and implement interventions to achieve sustainable change e.g. a compelling change narrative, new operating models, stakeholder and employee engagement and talent development.
The crisis has left the majority of organisations facing exceptional circumstances; including a radically altered business environment, the need to quickly reduce their cost base and safely reintegrate employees into office / retail / manufacturing spaces.
There will be an ‘emotional legacy’ from the rapid actions organisations had to take to move to virtual working
There will be an ‘emotional legacy’ from the rapid actions organisations had to take to move to virtual working. As a result, there are three additional psychological factors that need to be considered as they embark on their change programme:
- Formation of ‘in groups’ and ‘out groups’
- The rise of ‘Survivor Syndrome’
- A shift in the psychological contract.
Formation of ‘in groups’ and ‘out groups’
For most organisations, current social distancing requirements will necessitate a phased return of employees to communal workspaces. One solution we have heard when talking to clients is splitting a team into sub-teams and allowing one to work in the office for a short period of time. The office will then be cleaned before a different sub-team spends time there.
While this is a practical solution for social distancing, it can lead to the formation of ‘in groups and out groups’ which can impact the effectiveness of the team as a whole. These groups can form very quickly and as shown by Henri Tajfel’s (1) work, individuals can identify with a group on the basis of seemingly very little common ground e.g. the colour of a T-shirt. In an organisational environment, the random allocation to a particular sub-team would be enough to trigger feelings of belonging to a group.
The ability to quickly identify with a sub-team could be viewed positively, as members bond and begin to work effectively. However, the downside is the equally quick formation of unconscious biases about members of the other team(s). The assumptions that in-groups make about people in other groups can affect their ability to make joint decisions, evaluations of fairness or judgements on competence.
Organisations looking to use this or a similar approach will need to develop and implement strategies to address the formation of internal silos.
The rise of ‘Survivor Syndrome’
The financial impact of the lockdown will make it necessary for many organisations to operate at a much lower cost base (see article by my colleague Gary Ashton). A reduction in staffing levels is one lever that organisations have within their control.
An unintended psychological consequence of restructuring and redundancy is ‘survivor syndrome’. Initially people who have retained their jobs may feel a sense of relief and increase their performance to demonstrate their value to the business, however, this phase is short-lived and relief gives way to anxiety about the future and whether there will be further reductions in staff (2).
In addition, people may have lost colleagues that were part of their social support network at a time when they could require additional support.
During a time of staffing level reductions, the focus is often on those leaving the business. However, organisations should also consider the wider impact on the remaining employees.
During a time of staffing level reductions, the focus is often on those leaving the business. However, organisations should also consider the wider impact on the remaining employees.
A shift in the psychological contract
A work-based psychological contract is a set of beliefs based on promises between an employer and an employee. They can be expressed or, as is often the case, they are implied, and define the exchange of effort (employee) and benefits (employer). In this case, the definition of benefits is wider than the obvious salary, health care and holidays. It can include access to a social group (colleagues), a degree of job security, concern about an employee’s well-being – not things necessarily included in a formal employment contract.
Denise Rousseau (3) says that a psychological contract “creates an enduring mental model of the of the employment relationship”. This mental model provides a stable understanding of what to expect in the future and guides actions.
Failure to fulfil the contract, (a loss) can generate strong negative reactions such as anger, outrage and even withdrawal of effort. Low leader visibility to remote working employees and lack of information about job security are the examples of losses we are hearing about from clients.
As organisations start moving toward the next new normal, they will need to understand the losses employees are experiencing and look to rebuild those parts of the psychological contract.
Tips for change management interventions
In groups and out groups
- Continue to have regular full team meetings and allocate work to colleagues across the different sub-teams.
- Avoid labelling the sub-teams as this will give them a social identity.
- Regularly review and change the membership of the teams so that the life of a sub-team is limited and resulting in / out groups are short lived.
Survivor syndrome
- Communicate clearly and honestly:
- Acknowledge what has happened authentically to increase the credibility of future communication
- Build a sense of the future to help remaining employees see how they fit into the future of the organisation and reduce some job security anxiety.
- Provide people with training and development opportunities to signal investment in them and their / the businesses future.
- Have a clear and transparent process for the reduction in staff that can be effectively communicated. Feeling they have some control over their future will again reduce job security anxiety.
Psychological contract
- Conduct focus groups to understand where the psychological contract has been damaged.
- Analyse focus group insights and generate interventions that will start to rebuild the contract.
Conclusion
To achieve successful and sustainable change will require organisations to address both the rational AND emotional factors involved in change. Emerging from lockdown this includes developing interventions to mitigate three additional psychological factors: in group / out groups, survivor syndrome and the impact of Covid-19 on the psychological contract.
For more information, please contact Julie Brophy.
References
1. Tajfel, H., & Turner, J. C. (2004). The Social Identity Theory of Intergroup Behavior. In J. T. Jost & J. Sidanius (Eds.), Key readings in social psychology. Political psychology: Key readings (p. 276–293). Psychology Press. https://psycnet.apa.org/record/2004-13697-016
2. De Jong, T et al (2015) The impact of restructuring on employee well-being: a systematic review of longitudinal studies. Work and Stress. Vol 30 (2106) Issue 1 (p91-114) https://www.tandfonline.com/doi/abs/10.1080/02678373.2015.1136710
3. Rousseau, M. (2004) Psychological Contracts in the workplace: Understanding the ties that motivate https://www.researchgate.net/publication/277673774_Psychological_Contracts_in_the_Workplace_Understanding_the_Ties_That_Motivate