With the inevitability of the remote workforce caused by the pandemic, how have leadership styles changed? Are there plans to go back to the office?
With the pandemic forcing companies to close down physical locations due to spikes in cases, many employees now find themselves working remotely. This change has certainly been one that companies have had to adjust and adapt to – company leaders have had to determine best practices in leadership styles. Jeff DeFazio, Managing Partner for Carpe Diem Partners, spoke with 42 HR leaders about changes in CEO leadership styles brought on by the pandemic and remote work. The two questions centered around whether the CEOs of companies have changed their leadership style to accommodate a remote workforce and whether or not the company had plans to return to full in-office residence. For reference, the market scan included businesses comprised of public and private companies with $500mm or greater in revenue.
How Have CEOs Changed their Leadership Styles to Accommodate the Remote Workforce?
Many CHROs surveyed reported that CEOs that were originally reluctant to make changes to their leadership styles, eventually came around in 2021, resulting in meaningful progress for employees and the company overall. One candidate said their CEO changed by becoming “more empathetic, more present, [including] more wellness checks, [asking employees] how things are at home and how they can help to accommodate” while another explained that their CEO “went from [a] traditional style to more progressive thinking.” An addition of “wellness Fridays” and the CEO changing to be more “transparent and open to the employee’s needs” were also noted as positive and successful changes. More grace and empathy from the CEO was noted by another candidate, even though that CEO didn’t exactly change their style. Another CHRO stated that their CEO focused on the “safety of employees, including flexible accommodations and even [continued] with merit increases and bonuses.”
Across the broad set of responses, most concluded that there was enhanced communication with leadership. One HR leader said leadership “shifted to being more involved [with] welcome videos, letters, quarterly company meetings, more communication, more touchpoints, and spot talks.” Most added that meetings increased to being held daily to increase communication and connection throughout the company. One HR leader surveyed even said they held virtual wine tasting experiences to continue their business, showing flexibility and adaptability to both employees and consumers.
Were Some CEOs Hesitant? If So, What Compromises Were Made?
As expected, some CEOs were not quick to agree to a fully remote workforce, however, they were willing to make compromises in the form of hybrid models. One CHRO explained that the hybrid model had associates in the office 3 days a week and that “67% felt good about the hybrid model.” Similar to the different hybrid models, one company’s leadership elected for 50/50 virtual/office work.
Another HR leader stated that their CEO “had a hard time going remote and was forced into it by me (CHRO).” The hesitation was the change from the concept of measuring work based on being in the office and the number of hours completed, to a greater focus on results and placing more trust in associates. Although the change was not readily accepted, this HR leader was able to convert the CEO to this new concept of thinking.
There were several CHROs referencing trust as being a key setback in implementing remote work. One leader said that their CEO wanted to remain five days in the office and that there were “issues around trust from the CEO.” Another CEO was particularly reluctant, but “finally flipped from trust and verification to elevate and empower” as a new approach to thinking and leading. Disconnecting from the idea that results and performance are based upon visual sight has been an adjustment for many CEOs. Another company’s leadership was not a fan of the switch to a remote workforce at all and felt that employees needed to be face-to-face, but this caused heavy travel expenses, so leadership finally saw that remote work allowed for “cost savings and higher productivity.”
Will Businesses Return to Full in-office Residence? If So, When?
These market insights from Carpe Diem Global Partners are gathered from the firm’s extensive client work leading Board, CEO, CXO, and CHRO executive search engagements for public and private multinational companies. For deeper, custom insights, contact Jeff DeFazio at Jdefazio@carpediempartners.com.