To defend against disruption, build a thriving workforce

Courtesy of McKinsey & Company

By Jacqueline Brassey, Aaron De Smet, Emily Field, Taylor Lauricella, and Brooke Weddle

Key takeaways

Generative AI (gen AI) is reshaping jobs and industries. While AI can optimize productivity and address complex challenges like climate change, its mismanagement could lead to increased employee burnout. Properly integrated, AI should support, not replace, human creativity and innovation, as exemplified by the creative success of projects like the movie "Barbie," directed by Greta Gerwig.

Employees across industries and roles can be freed up or redeployed to focus on work that involves judgment, innovation, creativity, and collaboration—work that is more human.

Because this higher-level cognitive work is harder to plan for and manage, it requires much more than the absence of burnout. It demands a culture of thriving, in which the promise of innovation and technology, used correctly, inspires people to be more creative in their problem-solving. That can then benefit overall performance.

To build a thriving workplace, leaders must reimagine work, the workplace, and the worker. Employees are now more like elite artists or athletes who are inspired to produce at the highest levels but need adequate time to recharge and recover. Thriving is crucial not just for employee well-being but also for organizational resilience and innovation.

Diving into thriving: The skills that are most important now

The concept of thriving goes beyond mere job satisfaction or the absence of burnout. It encompasses a holistic sense of positive functioning where employees achieve a balance across physical, mental, social, and spiritual well-being. Thriving employees are depicted as those who demonstrate high levels of cognitive and social-emotional skills, enabling them to be collaborative and creative in their roles.

McKinsey's research identifies different segments within an organization's workforce, including 'thriving stars,' 'double-dippers,' and 'disruptors,' each contributing differently to the organization's culture and performance. Thriving stars, though small in number, have a significant positive impact on their teams and the broader organization.

Modern work environments should move away from traditional metrics like hours logged and outputs, focusing instead on outcomes and impact. This involves viewing employees as whole human beings—comparable to artists or athletes—who require support, flexibility, and the right conditions to perform at their best. To build a thriving culture, companies can rethink policies, practices, and rituals through the following five actions.

1.     Rewrite the rules on workforce flexibility: Effective leadership is crucial in fostering a thriving workforce. Leaders should encourage autonomy, flexibility, and a sense of purpose among employees. They should also provide support for mental and emotional health, recognizing the diverse needs and preferences of their workforce.

2.     Rethink the collaboration model:

The best collaborative models augment thriving by creating a team environment that offers clarity in three areas: the problem the team is trying to solve, how the team knows when it’s successful, and how to work together to get there.

·        What problem are we trying to solve?: Teams must understand the strategic context, problem statement, what’s in and out of scope, and the from–to aspiration at the start of each project.

·        How will we know when we’re successful?: Clearly define what the ultimate impact is from the project, as well as the leading indicators they can track along the way.

·        How do we create sustainable team practices?: Teams need to feel their own sense of agency as they work together. They must jointly identify and synthesize work preferences to make the most of their time together. Feedback is also important; people should be empowered to continually offer their constructive feedback about what could be done differently.

3.     Emphasize performance coaching

Continuous learning and development are vital. The organization should provide regular, constructive feedback and coaching, helping employees align with the organization's goals and navigate their personal growth paths.

4.     Create opportunities to practice and train, not just to perform

At many workplaces, leaders don’t specify whether employees are in practice mode or performance mode. Similarly to athletes, employees can be in practice mode during certain meetings with their teams, and they can be in performance mode during a board call or a steering committee meeting.

In practice mode, people can expand their comfort zones to be bolder, take more calculated risks, and be more innovative—all of which are critical to learning and professional development. When leaders offer an environment where employees feel safe to speak up, to disagree openly without repercussions, and to show up authentically, their teams are more likely to be productive, creative, and innovative. Leaders can augment these positive effects by clarifying which opportunities are practice and which are performance so that employees can experiment and develop their skills.

5.     Kick the meeting habit and build in time for recovery

To build thriving teams that can tackle problems effectively, it’s important to create the space for employees to think critically, get the work done, and have time to recover. At many organizations, meeting requirements have become a roadblock to creativity and real productivity. Allowing employees no meeting day, or microbreaks in between work to disconnect and recharge, can reap big rewards to their wellbeing and organizations. Recent McKinsey research on thriving indicates that globally, aligning employment with modifiable factors of health can not only lead to years of higher-quality life but also create trillions of dollars in economic value.

The future of work must embrace flexibility, creativity, and a deep understanding of human capabilities. Organizations that successfully cultivate a thriving workforce are better positioned to navigate disruptions and harness the opportunities presented by new technologies like AI. This not only enhances organizational performance but also contributes to a more sustainable and adaptable business environment.

To read the full article, please visit https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/to-defend-against-disruption-build-a-thriving-workforce

About the authors

Jacqueline Brassey is a coleader of employee health at the McKinsey Health Institute and a senior fellow in McKinsey’s Luxembourg office, Aaron De Smet is a senior partner in the New Jersey office, Emily Field is a partner in the Seattle office, Taylor Lauricella is an associate partner in the New York office, and Brooke Weddle is a partner in the Washington, DC, office.