THE COLLABORATIVE WORK ENVIRONMENT IN EUROPE
THE COLLABORATIVEWORK ENVIRONMENTIN EUROPEKey insights into the global workforce from Kelly
The collaborative work environmentIs there a key workplace factor thatwould improve both a company’sprofitability and their ability to attractand retain top talent? Collaborationis becoming just that factor.The top three features Europeanworkers use to define their idealwork environment are:FEATURES OF AN IDEAL WORK ENVIRONMENT CITED BY EUROPEAN TALENT, BY REGIONHighly collaborative environment vs highly individualized workHighly collaborative environment,cross-functional teams(preference ranging from 41%–80%)Highly individualized work with limitedteamwork and opportunities tocollaborate with others(preference ranging from 5%–30%)SwedenNorwayRussiaDenmark60% Highly collaborative environmentUK44% A culture of innovation and creativityIrelandNetherlands43% Flexible work arrangementsGermanyGenerational perceptionsBelgiumHow generational cohorts feel about each other’s capabilitiesaround collaboration greatly impacts the effectiveness inleveraging its benefits. So, how do their perceptions differ?MILLENNIALSGEN XLuxembourgBABYBOOMERSHungaryFranceMILLENNIALSTEND TO VALUECOLLABORATION39%21%21%GEN X TENDS TOPREFER WORKINGINDEPENDENTLYINSTEAD OF ASPART OF A TEAM47%36%34%BABY BOOMERSTEND TO BE BEHINDTHE TIMES 32%
/3Contents4 / Introduction5 / Collaboration andempathy as drivers ofbusiness success7 / Building acollaborative culture8 / Workers’ perspectiveson the collaborativeworkplace culture10 / T he ideal workenvironment iscollaborative13 / T here are still challengesto establishing acollaborative environment15 / A mismatch of skills17 / Collaboration and thebottom line19 / Millennials valuecollaborative workenvironments22 / Myth busting: nationaland generationalperceptions ofcollaborative habits24 / R ecommendation toemployers: avoid burnoutin top collaborators26/ O verview andmethodology
/4INTRODUCTIONIntroductionIs there a key workplace factor that can improve both a company’s profitability and its ability toattract and retain top talent?Across Europe, collaboration is becoming just that opportunity. Two-thirds of European businessleaders agree that enabling flexible working environments has a bigger financial impact ontheir bottom line than cutting operational costs. They also report a 39% increase in employeeproductivity when flexible work arrangements are allowed.1Meanwhile, millennial talent—a segment of the population with critical future-ready skills—standout with an above-average desire to work in agile, inclusive, and collaborative environments. Withskilled candidates in short supply in many European industries, it’s important for employers tounderstand that they can attain a collaborative work environment, and that such an environmentcan help to foster worker engagement and capture a competitive advantage.As a pioneer in the staffing industry, and in the study of workforce preferences, Kelly takes ahigh-level look at collaboration as it pertains to the global worker today. In addition to analyzingworker preferences and psychographic insights based on survey data from the 2015 and 2014Kelly Global Workforce Index (KGWI), this report collects insights from the Kelly Free AgentSurvey (2015) and other research sources. Unless otherwise noted, all statistics come from recentKelly workforce research data.Visit kellyservices.com for additional reports, articles, and insights.
/5COLLABORATION AND EMPATHY AS DRIVERS OF BUSINESS SUCCESSCollaboration and empathy asdrivers of business successEmpathyDefined as a deep emotionalintelligence that is closely connectedto cultural competence, empathyenables those who possess it to see theworld through the eyes of others andunderstand their unique perspectives.2CollaborationCollaboration is characterized byhighly diversified teams workingtogether, both inside and outsidea company, to create value byimproving innovation, customerrelationships, and efficiency.3To be successful, businesses need to hire people capable of both collaboration andempathy, and create an environment that nurtures and encourages these skills.Recruiting and retaining more collaborativeand empathetic people:Top- and bottom-line returns include: Strengthens employer brand Improve profitability. Has greater appeal to millennials, improvingboth recruitment and retentionBetter product development: Encourages a more diverse talent pool bypromoting inclusive decision-making Results in higher engagement of talent froma greater sense of satisfaction, belonging,and trust in co-workers and managerswhen given opportunities to participate incollaborative activities Improves employee health and wellness. More productive knowledge workers Ensures consumer-centric design Decreases time to market Encourages more innovation.
LEAD“Change is constant. Problems are global. Information is atour fingertips. In the era of Wikipedia , does it really matterhow much you can memorize? What’s more important isthat you can take the perspective of others—whether you’redesigning a new technology, or negotiating, or anticipatingthe uncertain. Indeed, how well we do—whether in theclassroom or the boardroom—depends more than ever onhow well we forge and navigate relationships. In this way,empathy is the new literacy: essential for us to communicate,collaborate, and lead.” —Stuart Foundation4
/7BUILDING A COLLABORATIVE CULTUREBuilding a collaborative cultureCORE BUILDING BLOCKSLEAD FROM THE TOPTRAIN ALL TALENTBUILD AND USE DIVERSE TEAMSIn a recent global survey, McKinsey found that89% of variance between strong and weakorganizations in terms of leadership effectivenessis driven by four traits5:Don’t just train full-time employees.Encourage all employees to:For all mission-critical decisions and projects,engage teams that cross: Develop critical soft skills such as listening,empathy, and communication Talent categories (including employees,independent contractors, and partners) Help smooth out differences in generationalworking styles and bust generational myths. Functional areas1. Being supportive2. Seeking different perspectives3. Solving problems effectively4. Operating with a strong results orientation.Having an open door policy helps, as doestransparency into corporate strategies and goals.Training and development programs areimportant to 66% of global talent. Demographic factors (including ageand ethnicity).Keep teams to a manageable size and useintelligent workforce design to support formaland informal collaboration.USE COLLABORATIVE TECHNOLOGIESPlay a supportive role in creating culturalbuilding blocks that can help drive betteroutcomes. For instance: The McKinsey Global Institute suggests thatfully connecting talent via social networkingtechnologies can improve knowledge-workerproductivity by 20% to 25%.6 Using video conferencing (which is stillunderutilized) gives employees “presence”when working remotely.Innovative enterprises make creating a collaborative work culture a top priority to compete effectively in rapidly changing andvolatile market conditions. They aren’t hampered by older ways of thinking about collaboration as activity-based or “extra” work.CULTURE SHIFTCollaboration skills are a new currency in the age of career resilienceand employability. Skill building, and training and developmentbecome part of a compensation package.Fresh ideas cross-pollinate across silos and boundaries within anorganization (via partners and vendors), and also stimulate debatethrough greater trust and communication.Collaborative behaviors are recognised and rewarded overcompetitive behaviors.A culture that is truly supportive of empathy and collaboration requires constant nurturing and leadership from the top.IMPROVED OUTCOMESThe employer brand is stronger,attracting and retaining diverse, highlyskilled talent—especially millennialsand those with professional ortechnical skill sets.Talent is more engaged, leadingto greater discretionary work effortsand productivity.Time to market is faster, improvingmarket position.Both talent and the organizationas a whole are more resilient tomarket fluctuations.Top- and bottom-line returns arehigher.
/8WORKERS’ PERSPECTIVES ON THE COLLABORATIVE WORKPLACE CULTUREWorkers’ perspectives on thecollaborative workplace cultureIn Europe, as in the United States (U.S.),companies can do better in encouraging acollaborative work environment. Less thanhalf (47%) of European workers feel that theircurrent or most recent employer’s (physicaland virtual) workplace promotes collaborationand inclusion. Norway (52%) and Russia (57%)lead the region in this regard, while theUnited Kingdom (U.K.) and Denmark lagbehind on 35%.Similarly, only 40% of surveyed Europeansbelieve their organizations structure promotescollaboration and inclusion. With 57% and24% respectively, Russia and Denmark sit atopposing ends of the spectrum.Given the strong business case for acollaborative work environment, there is anurgent need for improvement. According tothe 2015 and 2014 KGWI, European talentsees professional growth and personaldevelopment as key areas that improvework environments.Professional growth and personal development arekey to making work environments more attractive.65%64%59%65% of European workerssay initiatives to improveworkers’ work-life balancecontribute to an employer’sattractiveness.64% consider opportunitiesfor advancement a key driverin their decision to acceptone job over another.59% value training anddevelopment programs.Collaborative structures, processes, and innovations can increase employee engagement.43%33%26%43% of European workers saytheir employer continuallyfosters and encourages aculture of engagement.33% say special efforts aremade to retain innovatorsand key knowledge workers.26% feel fully engaged withtheir current employer.
/9WORKERS’ PERSPECTIVES ON THE COLLABORATIVE WORKPLACE CULTUREGenerational insights*42/24%Workers’ perspectives on the collaborativeworkplace culture (continued)International opportunitiesmake an organizationattractive to 42% ofmillennials, versus 24% ofbaby boomers.The shortcomings of region-wide labor policies lead to important disparities between countries.4/39%8/22%33%41%4% of Italian workersfeel fully engaged withtheir employer, versus39% of Norwegians.8% of Portugueseworkers feel highlyvalued by theiremployer, versus 22%of workers in Norwayand Russia.33% of Irish workersfeel more loyal to theiremployer compared tothe previous year.41% of Hungarian andBritish workers feel lessloyal compared to theprevious year.63/68%Work-life balance isimportant to 63% ofmillennials, versus68% of Gen Xers.33/22%Non-traditional perks andbenefits are importantto 33% of millennials,versus only 22% of babyboomers.Collaborative work cultures are far from being widespread.In Europe, as in the U.S., much progress has been made inmaking work environments more conducive to, and supportiveof, collaboration. However, these kinds of work environmentsare not common.84% of European workers say working for an innovative orprogressive company is important to them, but only 18% stronglyagree that their company culture embraces innovation andchange, and only 14% strongly agree that the organization’sstructure actively promotes collaboration and inclusion.37/39/44%Deriving a sense of purposefrom work is important to 37%of millennials, versus 39%of Gen Xers and 44% ofbaby boomers.*See page 18 for more generational insight.
/10 THE IDEAL WORK ENVIRONMENT IS COLLABORATIVEA highly collaborative environment rankshighest in Belgium, France, Italy, andPortugal (from 63% to 80%). Flexiblework arrangements are more of a priorityfor German, Hungarian, Dutch, Swedish,Norwegian, Danish, and British workers (from54% to 64%).Similar to the trend in the U.S., professional/technical talent in Europe stands out withan above-average appetite for these sameelements. The IT, science, and engineeringsegments consistently place more emphasison a company’s ability to expose them to thelatest technologies and top-notch equipment(from 63% to 80%).EuropeHighly collaborative environment,cross-functional teams60%Culture of innovation and creativitywhere the status quo is challenged44%Flexible work arrangements such as remotework options, flexible schedules/hours43%Exposure to latest technologiesand top-notch equipment39%32%Virtual teams29%Matrixed organizational structureRapid pace with constant change—always something new28%25%Traditional hierarchical organizational structure25%Traditional work arrangements—9–5 schedule for allScienceThe top three features they look for in theirideal work environment are flexible workarrangements (43%), a culture of innovationand creativity (44%), and a highly collaborativeenvironment (60%).Features of an ideal work environment cited byEuropean talent (regional versus occupational averages):InformationtechnologyWhen asked to describe their ideal workenvironment, European workers focus onelements that make their day-to-day lives moreflexible and collaborative.Finance andaccountingThe ideal work environmentis collaborativeEngineeringPercentage of respondents withprofessional/technical skills whorank ideal work environmentfeatures above, below, oron par with ( /-2%) theregional 22%20%21%18%22%Competitive, where the rewards and risks are high14%17%14%15%9%Highly individualized work with limited teamworkand limited opportunities to collaborate with others14%14%15%16%9%
/11 THE IDEAL WORK ENVIRONMENT IS COLLABORATIVEPercentage of respondents from Europe, the Middle East andAfrica (EMEA) who rank ideal work environment features above,below, or on par with ( /-2%) the regional rtugalRussiaSwedenSwitzerlandUnited KingdomThe ideal work environmentis collaborative (continued)Highly collaborative environment,cross-functional 41%57%54%Culture of innovation and creativitywhere the status quo is 3%46%56%42%42%Flexible work arrangements such asremote work options, flexible %50%29%47%57%50%54%Exposure to latest technologies andtop-notch %54%36%34%46%Virtual 42%25%37%Matrixed organizational %29%35%30%30%Rapid pace with constant change—always something %21%33%Traditional hierarchical organizational %28%18%25%31%Traditional work arrangements—9–5 schedule for %21%28%Competitive, where the rewards and risks are %21%Highly individualized work with limited teamworkand limited opportunities to collaborate with 9%15%Features of an ideal work environment cited byEuropean talent (regional versus national averages):
FRESH“With collaboration comes the chance for fresh thinking toemerge and disparate skills to be utilized, which can improvethe way your company does business—often in unexpectedways and from unexpected sources. That’s why a reliabletalent supply chain is so important. It can help ensure that youmaintain a consistent business footprint, which is especiallycritical when you are faced with unexpected challenges thatrequire cost-effective solutions.”—Mark Lanfear, KellyOCG Global Practice lead, Life Sciences 7
/13 THERE ARE STILL CHALLENGES TO ESTABLISHING A COLLABORATIVE ENVIRONMENTThere are still challenges to establishinga collaborative environmentEffective teamwork makes everyone lookbetter, but change can be hard. AcrossEurope, a positive and conducive work climatecan improve an organization’s bottom line byup to 30% while sensibly reducing absenceand turnover rates.8 But collaboration caninitially be uncomfortable. When puttingtop talent together in new or varied workingarrangements, workers can be resistant andcan overlook learning opportunities becausethey are more focused on competing witheach other.Adjusting to the culture of collaborationrequires two important steps. First, identifyand empower top collaborators who can easethe rest of the workforce into more flexibleand collaborative processes. Across Europe,up to 70% of a team’s work environment isinfluenced by its leaders’ style and approach,but many are still struggling to create acollaborative environment despite wanting tomove in this direction.9 Second, companiesmust effectively track the impact of changingpractices on top collaborators and their teams.If not properly managed, the sheer abundanceof options and possibilities can lead toburnout, lower engagement, and attritiondue to collaboration overload.10
/14 THERE ARE STILL CHALLENGES TO ESTABLISHING A COLLABORATIVE ENVIRONMENTThere are still challenges to establishing acollaborative environment (continued)ChallengesAs organizations grow and adapt to current market conditions, new workarrangements have emerged that span the talent supply chain, includingdealing with remote and geographically disparate teams, independentcontractors, and other flexible arrangements. At the same time, organizationscontinue to attempt to do more with less, expanding workloads while shrinkingbudgets. All this adds to the challenge of fostering a collaborative environment.Specific challenges include: Breaking down entrenched knowledge and management silos Moving beyond collaboration’s “messiness” and reputationfor being time-consuming Managing different work arrangements and styleswithin the same team Sharing a team reputation when it hingeson everyone in that team Changing the rules of engagement thatmight have worked for some talent Finding people with the right soft skills,including the ability to collaborate Ensuring that collaboration is used effectively to drivebusiness results, rather than becoming an excuse for“meeting overload”. Talent should be included inmeetings where appropriate—when theircontacts, insights, or information can’t be obtainedin a briefer or more effective manner.11OpportunitiesCollaboration can reinvigorate organizations by fully engagingemployees, improving retention, and increasing innovation. Evenwith all the known benefits of collaboration, many organizations feelpressure to keep the status quo.To move towards a more collaborative environment,consider these approaches: Make sure workers understand the benefits of collaboration. Nurture, encourage, and reward collaborativebehaviors through strong leadership. Invest in collaborative technology and supportive leaders tomove projects along between working sessions. Track the outcomes of collaborative efforts and showcasethe return on investment.
/15 A MISMATCH OF SKILLSA mismatch of skillsDespite all the talk about hard-skill needs, softskills such as critical thinking, problem-solving,persistence, collaboration, and curiosityare crucial for workers to thrive in a rapidlyevolving, technology-driven world.12However, it is a challenge to find the right softskills in European candidates. This is partlydue to the region’s significant skills mismatch,a trend that’s closely linked to lower jobsatisfaction and increased staff turnover.An OECD survey conducted across 33European countries showed that proficiencyin soft skills is positively associated with manyaspects of individual wellbeing, includinghealth, trust in others, and participation involunteer or community activities.13In 2014, 43% of European Union (EU)employees were working in jobs that did notmatch their skills or qua
4 / Introduction 5 / Collaboration and empathy as drivers of business success 7 / Building a collaborative culture 8 / Workers’ perspectives on the collaborative workplace culture 10 / The ideal work environment is collaborative 13 / There are still challenges to establishing a collaborative environment 15 / A mismatch of skills
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̶The leading indicator of employee engagement is based on the quality of the relationship between employee and supervisor Empower your managers! ̶Help them understand the impact on the organization ̶Share important changes, plan options, tasks, and deadlines ̶Provide key messages and talking points ̶Prepare them to answer employee questions
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