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STRONG
CULTURE
STRONG
LEADERS
It’s a Matter of Learning
About This E-Book
· · · WHAT? · · ·
An informative overview of how company culture and values relate to loyalty, employee
engagement, leadership skills, and professional development. Our research explored
workplace cultures that do and do not focus on learning. Our analyses focused on the
relationships, trends, and group differences stemming from cultures of learning and value
for good leadership. We included only the most significant findings in this e-book.
· · · WHY? · · ·
We found in past research that although most employees expressed satisfaction with their
company’s training and development, significant differences surfaced when it came to
employees’ opinions on whether or not their company valued learning.1
We now
understand that company culture is a factor in attracting top talent—but we wanted to find
out what kind of culture works best and which values have the greatest impact.
· · · WHO IS IT FOR? · · ·
HR managers, learning and development (L&D) professionals, training managers,
and others who want to have an impact on their organizations. Understanding the
importance of a culture of learning is important for everyone from partners and
employees to customers and users.
· · · WHO IS IT FROM? · · ·
The makers of Bridge, a modern learning platform for businesses. Bridge was built on the
idea that employees who are trained properly and given support will drive company-wide
success. It helps ensure that employees understand company goals, have access to
resources, and can master best practices, whether they’re handling customers or
operating forklifts.
Strong Culture, Strong Leaders:
It’s a Matter of Learning
Copyright © 2017
Published by Instructure
6330 South 3000 East, Suite 700
Salt Lake City, UT 84121
All rights reserved. Except as permitted under U.S. Copyright Act of 1976, no part of this publication may be reproduced,
distributed, or transmitted in any form or by any means, or stored in a database or retrieval system, without the prior written
permission of the publisher.
Design by Instructure.
Visit our website at www.getbridge.com
Table of Contents
Learning Is Culture · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 1
What Does a Culture of Learning Look Like? · · · · · · · · · · · · · · · · · · · · · · · 3
Design for Loyalty · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 5
Align Your Values · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 7
Develop Your Leaders · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 8
Leadership in Crisis · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · ·9
The 6 Essential Skills Every Company Should Value · · · · · · · · · · · · · · · · 9
The Impact of Leadership Developed · · · · · · · · · · · · · · · · · · · · · · · · · · · · 11
References · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 12
Appendix · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 14
Learning Is Culture
The values and beliefs held by a company and its
people contribute to that organization’s culture and
unique environment.2
Company culture predates any
employee’s hire date.3
You can sense it when you
walk in the door.4
Good company culture benefits both the company
and its employees. Case in point, research by
Glassdoor.com showed that companies named to
their “Best Places to Work” outperformed the S&P
500 Index five years in a row.5
But good company
culture doesn’t mean free meals and a generous
benefits package; it means having a strong culture
of learning.
WE ASKED EMPLOYEES: WHAT’S YOUR
COMPANY CULTURE LIKE?
In 2016, we surveyed more than 2,000 people at
companies across the United States to find out if
companies with cultures focused on learning had
any impact on company health.
ELEMENTS OF COMPANY CULTURE
Percentage of People Who Said Their
Company Has These Elements:
Formal ways to measure/track employee goals,
performance, and progress
Work/life balance
Generous benefits
An emphasis on integrating new employees
into the company’s culture
A strong culture of learning
Regular free meals
54.4%
43.8%
42.3%
37.3%
23.2%
13.3%
EMPLOYEES SAID THEY WANT MORE
THAN A CULTURE OF FREE FOOD
(THEY WANT FREE LEARNING TOO)
While catered meals and fully-stocked fridges don’t
hurt company culture, our survey found they don’t do
much to help either. Among the elements of company
culture we studied, free meals had the smallest
impact on employee engagement and loyalty.
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A
culture
oflearning
â€șâ€ș
Integrating
new
em
ployees
â€șâ€ș
W
ork/life
balance
â€șâ€ș
Benefits
â€șâ€ș
G
oaltrackingâ€șâ€ș
Free
m
eals
Loyalty
Engagement
Cultural Elements
â€șâ€șRelativeImpact
HAVING A CULTURE OF LEARNING
HAD THE GREATEST IMPACT ON
ENGAGEMENT AND LOYALTY.
â€șâ€ș 1
A CULTURE OF LEARNING ISN’T A
CULTURE OF SPENDING
IF YOU THINK TIME AND MONEY ARE BARRIERS
TO LEARNING, THINK AGAIN.
Employees in companies with a strong culture of
learning reported spending only .02 to 1.1 percent
more of their time and departmental budgets on
professional development.
Average amount of departmental budget
allocated to professional development
In companies with a strong culture of learning
Average amount of manager’s time devoted to
employee professional development
In companies with a strong culture of learning
Average amount of employees’ time devoted to
their own professional development
In companies with a strong culture of learning
In companies
WITHOUT a
strong culture
of learning
In companies
WITH a strong
culture of learning
Percentage of People
Who Said They Were
ENGAGED
Percentage of People
Who Said They Were
LOYAL
74.4%
99.5% 98.4%
63.2%
28.6%
32.8%
35.3%
28.8%
33.7%
36.4%
IT’S A MORE ENGAGED
& LOYAL CULTUREa
If you’re still not convinced that an emphasis
on learning is good for your company culture,
consider this: companies that valued learning—and
communicated this value to employees—had a 33.7
percent increase in engaged employees and a 55.7
percent increase in loyal employees.
THE BOTTOM LINE:
ALMOST 100 PERCENT OF EMPLOYEES
AT COMPANIES WITH A STRONG
CULTURE OF LEARNING REPORTED
FEELING ENGAGED AT WORK AND
LOYAL TO THEIR COMPANY.
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a
Differences were statistically significant: Employee Engagement, chi-square (2, N = 314) = 51.201, p < .001, Employee Loyalty, chi-square (2, N = 339) = 72.426, p < .001
What Does a Culture of
Learning Look Like?
Corporate trainers and L&D gurus agree: a strong
culture of learning has five critical elements.6,7,8
Yet,
when we surveyed employees and managers, we
found that most companies emphasized only a few
elements.
Facilitate performance feedback from managers to
employees.
Promote managers from within more often than hire from
outside the company.
Make knowledge and information sharing a part of
company culture.
Formalize training and development processes.
Recognize or compensate employees for their learning.
INDUSTRIES WITH STRONG
LEARNING CULTURES
When we compared culture by industry, we found that
people in finance (31.6 percent) and healthcare (28.3
percent) reported the highest rates of working for a
company with a strong culture of learning, while retail
and sales (21.8 percent) and SaaS/tech (20.9 percent)
were on par with the average.
DEFINE YOUR CULTURE’S STRENGTH
The smallest percentage (less than one-quarter) of
the people we surveyed said their companies’ culture
contained four or all five of the elements required
for a culture of learning. More than one-third said
none or only one of these elements were present in
their company’s culture. In grouping and comparing
company culture by weak, moderate, and strong we
were able to see if stronger was better.
STRONGER IS BETTER
In companies with a strong culture of learning, we found
that opportunities for face-to-face, hands-on, on-demand,
mobile-friendly, self-directed, and audio/video learning
were all significantly more available.b
A majority of the
people we surveyed said that both traditional and digital
learning tools are important—and important to them.
TYPE OF TRAINING
The Percentage of People Who Said These Types of
Training Are "Important to Them and Their Department"
23.2%
41.5%
35.3%
STRONG
4-5 elements are
present in their
company’s culture
MODERATE
2-3 elements are
present in their
company’s culture
WEAK
0-1 elements are
present in their
company’s culture
53.7%
52.3%
48.9%
39.0%
34.9%
Face-to-face formal training/courses
Hands-on, active, real-world, on the job instruction
On-demand, self-paced, online courses
Self-directed/informal learning from others or on your own
Mobile-friendly learning
Audio/video courses, lectures, tutorials, or demonstrations
80.1%
86.2%
63.6%
77.6%
45.5%
66.8%
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b
Face-to-Face, chi-square (2, N = 2264) = 218.608, p < .001 Hands-on, chi-square (2, N = 2264) = 148.233, p < .001 On-Demand, chi-square (2, N = 2264) = 86.790,
p < .001 Self-Directed, chi-square (2, N = 2264) = 114.336, p < .001 Mobile-Friendly, chi-square (2, N = 2264) = 38.879, p < .001 Audio/Video, chi-square (2, N = 2264)
= 130.512, p < .001
6 EFFECTIVE TRAINING
DESIGNS TO ADOPT
Use e-learning technology to help employees
organize and recall content.
Make training programs simple and effective.
Use e-learning technology to
engage employees.
Give managers data on employee learning.
Offer training in smaller, time saving units.
Create training content that is intuitive
with examples and exercises that are relevant
to the job.
GET YOUR CULTURE IN GEAR
Many industry analysts say that company culture
directly impacts financial performance, and they
turn to sites like Glassdoor.com to understand
employee sentiment.10
Our findings support
their conclusions—a strong culture of learning,
productivity, and company growth are all
significantly related.
A STRONG CULTURE OF
LEARNING MEANS 

YOUR TRAINING MENU
(LIKE YOUR CATERING MENU)
NEEDS VARIETY
Giving people the training they want is only half the
equation; effective training design is the other half.
Companies need to think about, among other things, a
training environment that provides materials relevant to
employees’ jobs and learning aids geared toward
recalling content.9
MORE OPPORTUNITIES FOR GROWTHc
97.8% of companies with a strong culture of
learning offered opportunities for growth
vs. 86.8% of average companies
MORE PEOPLE ATTENDING MORE TRAININGd
Employees in companies with a strong culture of
learning attended an average of 4.5 company-
provided training sessions during the past year
vs. 3.5 in average companies
Culture of
Learning
Company
Loyalty
Employee
Engagement
WORKPLACES WITH A STRONG CULTURE
OF LEARNING EXCELLED AT PROVIDING
THEIR PEOPLE WITH A MORE EFFECTIVE
LEARNING EXPERIENCE, WHICH WAS
ALSO TIED TO EMPLOYEE ENGAGEMENT.e
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â€șâ€ș 20%
â€șâ€ș 10%
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Average Companies
Companies with a Strong
Culture of Learning
0-1 2-3 4-5 6-7 8-9 10+
# of Trainings Attended
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c
Differences were statistically significant, chi-square (3, N = 2000) = 166.439, p < .001
d
Differences were statistically significant, F(2, 2255) = 49.727, p < .001, eta-squared = .042
This company's values and culture provide a good fit with
the things that I value in life.
I would be happy to spend the rest of my career with
this company.
I feel a sense of belonging in my company.
My personal values mach my organization's values
and culture.
I feel like I am “part of the family” at this company.
This company has personal meaning to me.
I feel as if this company's problems are also mine.
We understand that top talent demands good
culture.11
While we don’t know which came first,
the culture or the opportunities to grow, we now
know that the right mixture makes a difference.
By adopting a culture of learning, you can lay
the groundwork for a workforce that’s ready and
willing to contribute to your company’s success.
If you don’t, your competitors will.
Design for Loyalty
PEOPLE USED TO SPEND THEIR
ENTIRE CAREERS WORKING FOR
ONE COMPANY, BUT NOW ...
“If you love your company and want to spend
your career there, you are essentially a unicorn in
the job market, but you’re still not as rare as the
company you work for, provided they deserve
your devotion.”12
—Jen Hubley Luckwaldt,
“What Inspires Us to Be Loyal Employees”
Is this perception real? We set out to challenge
conventional wisdom that company loyalty is
a thing of the past. We discovered that loyalty
today is different and that those rare companies
investing in their employees do in fact get a return
on their investments.
FOCUS ON ALIGNMENT
OVER LONGEVITY
Company commitment or loyalty can take
many forms. People can commit to the cause
without committing to a single company.
Likewise, people can commit to their company
without committing to their current job. Our
survey examined the latter and we asked
people about their feelings toward their
current workplace.13
FACTORS OF LOYALTY THAT HR
CAN ESTABLISH
LOYALTY NO LONGER MEANS
YEARS OF SERVICE
During the past 15 years, employers have seen a decline
in the number of people who stayed at one company for
20 years or more; it dropped from 3 in 10 people in 1996 to
just over 2 in 10 by 2012.14
But longevity in your workforce doesn’t necessarily mean
employees align with your company’s values and goals. It
also has nothing to do with productivity.
We looked at the number of years employees worked
for a company and found a very weak association with
company loyalty. It was nearly the same whether someone
worked for the company just a few years or more than
30 years.f
EMPLOYEES’ SENSE OF LOYALTY TO
72.9%
72.5%
72.4%
72.2%
69.8%
59.4%
69.2.%
A STRONG CULTURE OF LEARNING
CAN IMPACT MORE THAN
EMPLOYEE OUTCOMES.
IN FOCUSING ON ALIGNMENT,
WE SAW THAT A MAJORITY OF PEOPLE
CONSIDERED THEMSELVES LOYAL.
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e
Design Aspects were used significantly more in workplaces with a Strong culture of learning: 1. F(2, 2263) = 82.246, p < .001, eta-squared = .068 2. F(2, 2263) = 102.581, p < .001,
eta-squared = .083 3. F(2, 2263) = 85.098, p < .001, eta-squared = .070 4. F(2, 2263) = 116.802, p < .001, eta-squared = .094 5. F(2, 2263) = 88.341, p < .001, eta-squared = .072
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â€șâ€ș 5 10 15 20 25 30
Years at Company
AverageCompanyLoyalty
Our work focused on alignment; when organizational
values matched personal values, millennials were no more
or less loyal to their company than baby boomers
or Gen Xers.g
INVEST IN YOUR PEOPLE, YOUR
PEOPLE INVEST IN YOU
Loyalty now represents how strongly you and your people
share organizational goals—and how passionately they’ll
work to accomplish those goals. Because loyalty is tied to
engagement and both are tied to culture, companies can
invest in learning and organize employees’ viewpoints
around shared goals.
Well-Rounded Culture,
Well-Rounded Company
We’ve offered plenty of reasons why a stronger culture
of learning is better and why companies should adopt
effective training designs. But looking even deeper
into your company’s challenges, we see both of these
as part of the organization.
Growth, whether it’s measured by increased revenue
or increased productivity, improves the health of
your company. One of the most impactful factors
on productivity is retaining your best employees—
the ones who are agile, continuous learners, and
innovators.17
Without high-performing employees, you
lose productivity, and without great leadership, even
great employees can’t do what they do best.18
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Training Effectiveness
AverageCompanyLoyalty
EMPLOYEES’ SENSE OF LOYALTY TO
YOUR COMPANY DOESN’T PREDICT HOW
LONG THEY'LL WORK FOR YOU, AND
THAT'S A GOOD THING.
WHEN ALIGNMENT IS THE
FOCUS, GENERATIONAL
DIFFERENCES DISAPPEAR
Research by Deloitte suggests that if given the
choice, 25 percent of millennials would quit their
current jobs in one year; 44 percent would quit in
two years; and only 16 percent would plan to stay
with their current employers for 10 years.15
Much of
Deloitte’s research points to a mismatch between
millennials’ personal values and
organizational goals.16
LOYALTY AMONG
THE GENERATIONS
Baby Boomers = 85.4%
Gen Xers = 87.8%
Millennials = 87.4%
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f
Years of Service and Loyalty, r (2264) = .119, p < .001 Years of Service and Productivity, r (2264) = -.010, p = .623
Our findings also draw connections among company
culture, productivity, good leadership, engagement,
effective training, and loyalty to the company. While
we don’t know what comes first, we do know that all of
these facets of a company are related.
Recognizing Your Culture’s Place
ALIGN YOUR CULTURE
Loyalty isn’t the same as longevity. Working at a
company longer doesn’t amount to more loyalty or
productivity. When you think about loyalty, you should
think about developing your employees whose values
and goals are aligned with those of your company. It’s a
collaboration where everyone and every part matters—
to the company, to your leaders, and to your bottom line.
Align Your Values
LEADERS RATE THEIR OWN SKILLS
HIGHER THAN EMPLOYEES.
Leaders rate themselves: 4.17
Employees rate their leaders: 3.39h
IN COMPANIES THAT DON’T
VALUE LEADERSHIP, THE DIVIDE
IS EVEN WIDER.
Leaders rate themselves: 4.09
Employees rate their leaders: 2.58i
IN COMPANIES THAT VALUE
LEADERSHIP, THE GAP IS CLOSED.
Leaders rate themselves: 4.45
Employees rate their leaders: 4.20j
It’s About Alignment
& Improvement
Employee
Engagement
Company
Productivity
Company
Growth
Leadership
Skills
Effective
Training
Culture of
Learning
Effective
Training
Effective
Training
Company
Loyalty
Employee
Engagement
Leadership
Skills
Company
Growth
Culture of
Learning
Company
Loyalty
Employee
Engagement
Company
Growth
Leadership
Skills
Company
Productivity
Low
( r = .15 - .29)
Moderate
( r = .30 - .49)
Strong
( r = .50)
â€șâ€ș Correlation
Correlation Strength
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â€șâ€ș 2
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AverageRatingofLeaderAbilities
Leader Abilities Valued by Company
Employee
Manager
.369
.394 .535
.344 .466 .606
.372 .465 .559.722
.158 .250 .213 .243.227
.257 .435 .323 .329 .357.354
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Develop Your Leaders
WHILE MOST LEADERS ARE PROMOTED FROM WITHIN,
IT'S GOOD TO HAVE A MIX OF INTERNALLY-PROMOTED
AND EXTERNALLY-HIRED LEADERS.
MOST INTERNAL PROMOTIONS GO TO TOP PERFORMERS
39.4% Externally Hired
60.6% Internally Promoted
26.9% I was the top
performer in my department.
8% I asked to be a manager.
11.5% I was groomed to be a leader.
11.3% I was promoted
as a form of reward.
1.5% There was no
one else for the job.
10.1% Others saw me
as a natural leader.
15.9% I had the most
technical knowledge
among my colleagues.
14.8% I was given a promotion because
of my education/background.
MOST EXTERNAL HIRES APPLY FOR AN OPENING
21.8% I was referred by a
colleague or a friend.
46.7% I applied for an opening.
31.5% I was recruited
by my company.
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+
-
-
-
JUST HALF OF CURRENT LEADERS
ENTERED THEIR ROLES PREPARED.
39.4% had previous experience
11.5% were groomed to be leaders
50.9% were prepared to lead
Leadership in Crisis
Most employees said leaders are promoted
from within, but less than half (44.4 percent) of
employees are actively being developed for
future leadership positions. No matter how you
do the math, many leaders are not getting the
learning opportunities they need.
79.2% of departments promote from within
44.4%
34.8%
78.0% of companies promote from within
44.4%
33.6%
76.5% of leaders were internally promoted
44.4%
32.1%
The 6 Essential Skills Every
Company Should Value
HR and L&D departments are facing two big
challenges as baby boomers begin to retire:
companies are losing some of their best leaders
and struggling to find people with hard skills.20
But
filling the soft skills gap may be more challenging
than we thought.
A leader’s soft skills can help to create agile and
innovative organizations, and make a company
one of the best places to work.21
Research from
DDI World, an international human resources
consulting firm, identified critical competencies
for leaders that overlap with these skills.22
But
according to the people we surveyed, their
companies rarely valued them.
THE SKILLS YOUR LEADERS NEED
Decision Making, Delegating, Problem Solving
(evaluating alternatives, making timely decisions, and
assigning tasks and responsibilities to individuals or teams)
Communicating (clarifying purpose, developing ideas,
and agreeing on next steps)
Technical Knowledge & Expertise (applying skills to
improve processes, procedures, and operations)
Planning & Organizing (setting priorities, establishing
timelines, and leveraging resources)
Coaching/Mentoring (preparing employees to excel in
new challenges and addressing performance problems)
Gaining Commitment (building trust,
encouraging two-way communication,
and strengthening relationships)
BETWEEN 32.1% AND 34.8% OF
FUTURE LEADERS MAY NOT DEVELOP
THE SKILLS THEY NEED TO SUCCEED.
53%
48.6%
47.1%
37.1%
30.5%
27.8%
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g
Differences were non-significant, F(2, 2224) = 1.170, p = .310
h
t (2264) = 22.6473, p < .001
i
t (336) = 16.084, p < .001
j
t (146) = 1.9225, p > .05
VIEW LEADER DEVELOPMENT
AS THE SOLUTION
Employees’ perceptions of how much their companies
value these skills varied widely. It may be difficult for
companies to show that they value these skills or hard for
employees to recognize that their companies value them.
And while we don’t know if the support or the good
leaders came first, we do know that effective training and
company support for a variety of trainings were positively
related to company value for good leadership.
CULTURE OF LEARNING =
CULTURE OF LEADERSHIP
If your company wants to stay competitive, you can’t
afford to have poor leadership. Simply trusting that
good leadership will happen isn’t enough. HR and L&D
managers may feel that basic skills training satisfies
the desire for leaders to learn more. But educating
your current and future leaders on these soft skills is
essential to your company’s culture and health.
Make culture and development priorities instead of
afterthoughts.
FEW COMPANIES VALUE
ALL 6 SKILLS
THE CASE FOR DEVELOPING
YOUR LEADERS
Your leaders can positively or negatively
impact the health of your company.23
With great
leadership in place, company culture is developed,
not forced, because leaders can influence their
teams’ engagement and loyalty.24
Valuing all five
essential leadership skills can cultivate great
leaders and, in turn, more engaged employees.
A slight majority (54.5 percent) of the people
we surveyed said that their company valued at
most two of these essential leadership skills. The
importance of these skills cannot be overstated.
We found that companies who valued these
skills also placed greater value on internal
development. In these companies, employees
appreciated their leaders more and productivity
was higher.
Well-Designed
Training
Employee Evals
of Leaders
Variety of
Training
Support
Good
Leadership
Valued
Variety of Training
Support
Value for Good
Leadership
Employee Evals of
Leaders
Company
Productivity
Variety of
Training
Support
Value for
Leadership
Skills Employee
Evals of
Leaders
Effective
Training
Low
( r = .15 - .29)
Moderate
( r = .30 - .49)
Strong
( r = .50 +)
Correlation Strength
6.4%
8.3%
12.8%
17.9%
19.3%
20.4%
14.8%
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# of Skills Valued
.431
.368 .293
.466 .312 .416
.435 .370 .321 .323
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The Impact of Leadership
Developed
DO YOUR EMPLOYEES HAVE A GOOD
RELATIONSHIP WITH THEIR LEADER?25
Do they

‱ Like their leader as a person?
‱ Think their leader is the kind of person that they
would like to have as a friend?
‱ Know that their leader would defend their work
if needed?
‱ Do work for their leader that goes beyond what
is expected?
‱ Apply extra effort, or go beyond what is
specified in their job description?
‱ Feel impressed with their leader's knowledge
and competence?
‱ Admire their leader’s professional skills?
A MAJORITY OF EMPLOYEES
SAID THEY LIKE THEIR
BOSSES (WEIRD, HUH?!)
Seven Signs
Like Leader
Good Friend
Defend My Work
Beyond Expectations
Extra Effort
Leader Knowledge
Professional Skills
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â€șâ€ș 1 2 3 4 5 6 7
Employee/Leader Relationship
EmployeeRatingLeader'sSkills
EMPLOYEES WHO RATED THEIR
LEADERS’ SKILLS HIGHER ALSO HAD
A BETTER WORKING RELATIONSHIP
WITH THEM.k
YOUR LEADERS ARE THE LIFEFORCE
OF YOUR CULTURE
Strong culture—it’s what attracts top talent. Strong
leadership—it’s a matter of your company’s
longevity.
By valuing crucial skills, you can improve the
quality of your leadership and inspire engaged
employees who align with your company’s
mission.
Your company needs the right kind of culture and
the right kind of leadership. We’ve shown you
what they are and how your company can benefit.
The rest is up to you.
80.2%
66.1%
79.6%
81.4%
89.2%
73.6%
73.2%
Percentage of People
Who Agreed
â€șâ€ș 11
k
r (2264) = .776, p = .0001
· · · REFERENCES · · ·
1
Irvine, Alison K., and Sean Morris. Preparing Employees for the Future: Challenges for Learning
Organizations Today. Instructure, Salt Lake City, UT, 2016 www.getbridge.com/pdf/2016_2_Workforce_
Learning_WP_R_and_Ed_US.pdf.
2
“Organizational Culture.” Wikipedia.org, 2016. https://en.wikipedia.org/wiki/Organizational_culture.
3
Craig, William. “What Is Company Culture, and How Do You Change It?” Forbes. Jersey City, NJ, October
2014. http://www.forbes.com/sites/williamcraig/2014/10/24/what-is-company-culture-and-how-do-you-
change-it/#7889e28e3e4a.
4
Bersin, Josh. “Culture: Why It’s The Hottest Topic In Business Today.” Forbes. Jersey City, NJ, March
2015. http://www.forbes.com/sites/joshbersin/2015/03/13/culture-why-its-the-hottest-topic-in-business-
today/#72d5e5b6e28c.
5
Chamberlain, Andrew. Does Company Culture Pay Off? Analyzing Stock Performance of “Best Places
to Work” Companies. Mill Valley, CA, 2015. https://www.glassdoor.com/research/studies/does-company-
culture-pay-off-analyzing-stock-performance-of-best-places-to-work-companies/.
6
Bersin, Josh. “5 Keys to Building a Learning Organization.” Forbes. Jersey City, NJ, January 2012. http://
www.forbes.com/sites/joshbersin/2012/01/18/5-keys-to-building-a-learning-organization/2/#791b15b029c7.
7
Mallon, David. High-Impact Learning Culture: The 40 Best Practices for Creating an Empowered
Enterprise, 2010.
8
Nabong, Tala A. “Creating a Learning Culture for the Improvement of Your Organization.” Workforce
Development, 2015.
9
Salas, E., S. I. Tannenbaum, K. Kraiger, and K. A. Smith-Jentsch. “The Science of Training and
Development in Organizations: What Matters in Practice.” Psychological Science in the Public Interest 13,
no. 2 (June 1, 2012): 74–101. doi:10.1177/1529100612436661.
10
Bersin, Josh. "Culture: Why It’s The Hottest Topic in Business Today."
11
Ibid.
12
Jen Hubley Luckwaldt, “What Inspires Us to Be Loyal Employees?”. Accessed September 1, 2016
http://www.payscale.com/career-news/2013/08/what-inspires-us-to-be-loyal-employees.
13
Meyer, John P., Natalie J. Allen, and Catherine A. Smith. “Commitment to Organizations and Occupations:
Extension and Test of a Three-Component Conceptualization.” Journal of Applied Psychology 78, no. 4
(1993): 538–51. doi:10.1037/0021-9010.78.4.538.
14
Elmer, Vickie. “50-plus Years on the Job: An Extremely Rare Bird.” Fortune, February 2014. http://fortune.
com/2014/02/28/50-plus-years-on-the-job-an-extremely-rare-bird/.
â€șâ€ș 12
15
The 2016 Deloitte Millennial Survey: Winning over the next generation of leaders http://www2.deloitte.
com/content/dam/Deloitte/global/Documents/About-Deloitte/gx-millenial-survey-2016-exec-summary.pdf.
16
Ibid, Deloitte, 2016.
17
Sullivan, John. “Increasing Employee Productivity: The Strategic Role That HR Essentially Ignores | ERE.”
ERE | Recruiting Intelligence, 2011. http://www.eremedia.com/ere/increasing-employee-productivity-the-
strategic-role-that-hr-essentially-ignores/.
18
Ibid, Sullivan, 2011.
19
Krell, Eric. “Weighing Internal vs External Hires.” SHRM, 2015. https://www.shrm.org/hr-today/news/hr-
magazine/pages/010215-hiring.aspx.
20
Higginhottom, Karen. “Challenges for HR Directors in 2016.” Forbes, 2015. http://www.forbes.com/sites/
karenhigginbottom/2015/12/30/challenges-for-hr-directors-in-2016/#1a3b57a75ae2.
21
Phillips, Jack, and Patti Phillips. “Derive Hard Numbers from Soft Skills.” LinkedIn Pulse, 2015. https://
www.linkedin.com/pulse/derive-hard-numbers-from-soft-skills-jack-and-patti-phillips.
22
Scott Erker, and Bradford Thomas, “Finding the First Rung: A study on the challenges facing today’s
frontline leader” PDF file http://www.ddiworld.com/ddi/media/trend-research/findingthefirstrung_mis_ddi.
pdf.
23
Rietsema, Dave. “Importance of Leadership in Business.” HR Payroll Systems, 2015. http://www.
hrpayrollsystems.net/importance-of-leadership-in-business/.
24
Anderson, Amy. “Good Leaders Are Invaluable to a Company, Bad Leaders Will Destroy It.” Forbes,
2013. http://www.forbes.com/sites/amyanderson/2013/01/14/good-leaders-are-invaluable-to-a-company-
bad-leaders-will-destroy-it/#62179d9625b6.
25
May, Douglas R., Richard L. Gilson, and Lynn M. Harter. “The Psychological Conditions
of Meaningfulness, Safety and Availability and the Engagement of the Human Spirit at
Work.” Journal of Occupational and Organizational Psychology 77, no. 1 (March 2004): 11–37.
doi:10.1348/096317904322915892.
â€șâ€ș 13
· · · APPENDIX: ABOUT THE RESEARCH · · ·
This research for Bridge by Instructure, with the help of Qualtrics, was a
follow-up to previous work. In the spring of 2016 we surveyed 2,246 people
all over the United States.
Men and women were equally represented as were the generations: 39 percent were baby
boomers, 31 percent were Gen Xers, and 30 percent were millennials. Our sample also
represented managers and employees equally (49.9 percent and 50.1 percent, respectively).
And our participants came from a wide range of industries:
Industry
Arts, Entertainment, or Recreation
Construction, Utilities
Educational Services
Finance or Insurance
Government
Healthcare or Social Services
Hospitality or Food Services
SaaS, Technology
Management of Companies
Manufacturing or Wholesale
Real Estate or Rental and Leasing
Retail or Sales
Transportation
Other
Total
N
64
108
192
272
236
276
92
215
49
207
47
271
106
129
2,264
Valid Percent
2.8%
4.8%
8.5%
12%
10.4%
12.2%
4.1%
9.5%
2.2%
9.1%
2.1%
12%
4.7%
5.7%
100%
â€șâ€ș 14
getbridge.com

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Create culture-of-learning

  • 2. About This E-Book · · · WHAT? · · · An informative overview of how company culture and values relate to loyalty, employee engagement, leadership skills, and professional development. Our research explored workplace cultures that do and do not focus on learning. Our analyses focused on the relationships, trends, and group differences stemming from cultures of learning and value for good leadership. We included only the most significant findings in this e-book. · · · WHY? · · · We found in past research that although most employees expressed satisfaction with their company’s training and development, significant differences surfaced when it came to employees’ opinions on whether or not their company valued learning.1 We now understand that company culture is a factor in attracting top talent—but we wanted to find out what kind of culture works best and which values have the greatest impact. · · · WHO IS IT FOR? · · · HR managers, learning and development (L&D) professionals, training managers, and others who want to have an impact on their organizations. Understanding the importance of a culture of learning is important for everyone from partners and employees to customers and users. · · · WHO IS IT FROM? · · · The makers of Bridge, a modern learning platform for businesses. Bridge was built on the idea that employees who are trained properly and given support will drive company-wide success. It helps ensure that employees understand company goals, have access to resources, and can master best practices, whether they’re handling customers or operating forklifts. Strong Culture, Strong Leaders: It’s a Matter of Learning Copyright © 2017 Published by Instructure 6330 South 3000 East, Suite 700 Salt Lake City, UT 84121 All rights reserved. Except as permitted under U.S. Copyright Act of 1976, no part of this publication may be reproduced, distributed, or transmitted in any form or by any means, or stored in a database or retrieval system, without the prior written permission of the publisher. Design by Instructure. Visit our website at www.getbridge.com
  • 3. Table of Contents Learning Is Culture · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 1 What Does a Culture of Learning Look Like? · · · · · · · · · · · · · · · · · · · · · · · 3 Design for Loyalty · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 5 Align Your Values · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 7 Develop Your Leaders · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 8 Leadership in Crisis · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · ·9 The 6 Essential Skills Every Company Should Value · · · · · · · · · · · · · · · · 9 The Impact of Leadership Developed · · · · · · · · · · · · · · · · · · · · · · · · · · · · 11 References · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 12 Appendix · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 14
  • 4. Learning Is Culture The values and beliefs held by a company and its people contribute to that organization’s culture and unique environment.2 Company culture predates any employee’s hire date.3 You can sense it when you walk in the door.4 Good company culture benefits both the company and its employees. Case in point, research by Glassdoor.com showed that companies named to their “Best Places to Work” outperformed the S&P 500 Index five years in a row.5 But good company culture doesn’t mean free meals and a generous benefits package; it means having a strong culture of learning. WE ASKED EMPLOYEES: WHAT’S YOUR COMPANY CULTURE LIKE? In 2016, we surveyed more than 2,000 people at companies across the United States to find out if companies with cultures focused on learning had any impact on company health. ELEMENTS OF COMPANY CULTURE Percentage of People Who Said Their Company Has These Elements: Formal ways to measure/track employee goals, performance, and progress Work/life balance Generous benefits An emphasis on integrating new employees into the company’s culture A strong culture of learning Regular free meals 54.4% 43.8% 42.3% 37.3% 23.2% 13.3% EMPLOYEES SAID THEY WANT MORE THAN A CULTURE OF FREE FOOD (THEY WANT FREE LEARNING TOO) While catered meals and fully-stocked fridges don’t hurt company culture, our survey found they don’t do much to help either. Among the elements of company culture we studied, free meals had the smallest impact on employee engagement and loyalty. â€șâ€ș 40 â€șâ€ș 35 â€șâ€ș 30 â€șâ€ș 25 â€șâ€ș 20 â€șâ€ș 15 â€șâ€ș 10 â€șâ€ș 5 â€șâ€ș 0 â€șâ€ș A culture oflearning â€șâ€ș Integrating new em ployees â€șâ€ș W ork/life balance â€șâ€ș Benefits â€șâ€ș G oaltrackingâ€șâ€ș Free m eals Loyalty Engagement Cultural Elements â€șâ€șRelativeImpact HAVING A CULTURE OF LEARNING HAD THE GREATEST IMPACT ON ENGAGEMENT AND LOYALTY. â€șâ€ș 1
  • 5. A CULTURE OF LEARNING ISN’T A CULTURE OF SPENDING IF YOU THINK TIME AND MONEY ARE BARRIERS TO LEARNING, THINK AGAIN. Employees in companies with a strong culture of learning reported spending only .02 to 1.1 percent more of their time and departmental budgets on professional development. Average amount of departmental budget allocated to professional development In companies with a strong culture of learning Average amount of manager’s time devoted to employee professional development In companies with a strong culture of learning Average amount of employees’ time devoted to their own professional development In companies with a strong culture of learning In companies WITHOUT a strong culture of learning In companies WITH a strong culture of learning Percentage of People Who Said They Were ENGAGED Percentage of People Who Said They Were LOYAL 74.4% 99.5% 98.4% 63.2% 28.6% 32.8% 35.3% 28.8% 33.7% 36.4% IT’S A MORE ENGAGED & LOYAL CULTUREa If you’re still not convinced that an emphasis on learning is good for your company culture, consider this: companies that valued learning—and communicated this value to employees—had a 33.7 percent increase in engaged employees and a 55.7 percent increase in loyal employees. THE BOTTOM LINE: ALMOST 100 PERCENT OF EMPLOYEES AT COMPANIES WITH A STRONG CULTURE OF LEARNING REPORTED FEELING ENGAGED AT WORK AND LOYAL TO THEIR COMPANY. â€șâ€ș 2 a Differences were statistically significant: Employee Engagement, chi-square (2, N = 314) = 51.201, p < .001, Employee Loyalty, chi-square (2, N = 339) = 72.426, p < .001
  • 6. What Does a Culture of Learning Look Like? Corporate trainers and L&D gurus agree: a strong culture of learning has five critical elements.6,7,8 Yet, when we surveyed employees and managers, we found that most companies emphasized only a few elements. Facilitate performance feedback from managers to employees. Promote managers from within more often than hire from outside the company. Make knowledge and information sharing a part of company culture. Formalize training and development processes. Recognize or compensate employees for their learning. INDUSTRIES WITH STRONG LEARNING CULTURES When we compared culture by industry, we found that people in finance (31.6 percent) and healthcare (28.3 percent) reported the highest rates of working for a company with a strong culture of learning, while retail and sales (21.8 percent) and SaaS/tech (20.9 percent) were on par with the average. DEFINE YOUR CULTURE’S STRENGTH The smallest percentage (less than one-quarter) of the people we surveyed said their companies’ culture contained four or all five of the elements required for a culture of learning. More than one-third said none or only one of these elements were present in their company’s culture. In grouping and comparing company culture by weak, moderate, and strong we were able to see if stronger was better. STRONGER IS BETTER In companies with a strong culture of learning, we found that opportunities for face-to-face, hands-on, on-demand, mobile-friendly, self-directed, and audio/video learning were all significantly more available.b A majority of the people we surveyed said that both traditional and digital learning tools are important—and important to them. TYPE OF TRAINING The Percentage of People Who Said These Types of Training Are "Important to Them and Their Department" 23.2% 41.5% 35.3% STRONG 4-5 elements are present in their company’s culture MODERATE 2-3 elements are present in their company’s culture WEAK 0-1 elements are present in their company’s culture 53.7% 52.3% 48.9% 39.0% 34.9% Face-to-face formal training/courses Hands-on, active, real-world, on the job instruction On-demand, self-paced, online courses Self-directed/informal learning from others or on your own Mobile-friendly learning Audio/video courses, lectures, tutorials, or demonstrations 80.1% 86.2% 63.6% 77.6% 45.5% 66.8% â€șâ€ș 3 b Face-to-Face, chi-square (2, N = 2264) = 218.608, p < .001 Hands-on, chi-square (2, N = 2264) = 148.233, p < .001 On-Demand, chi-square (2, N = 2264) = 86.790, p < .001 Self-Directed, chi-square (2, N = 2264) = 114.336, p < .001 Mobile-Friendly, chi-square (2, N = 2264) = 38.879, p < .001 Audio/Video, chi-square (2, N = 2264) = 130.512, p < .001
  • 7. 6 EFFECTIVE TRAINING DESIGNS TO ADOPT Use e-learning technology to help employees organize and recall content. Make training programs simple and effective. Use e-learning technology to engage employees. Give managers data on employee learning. Offer training in smaller, time saving units. Create training content that is intuitive with examples and exercises that are relevant to the job. GET YOUR CULTURE IN GEAR Many industry analysts say that company culture directly impacts financial performance, and they turn to sites like Glassdoor.com to understand employee sentiment.10 Our findings support their conclusions—a strong culture of learning, productivity, and company growth are all significantly related. A STRONG CULTURE OF LEARNING MEANS 
 YOUR TRAINING MENU (LIKE YOUR CATERING MENU) NEEDS VARIETY Giving people the training they want is only half the equation; effective training design is the other half. Companies need to think about, among other things, a training environment that provides materials relevant to employees’ jobs and learning aids geared toward recalling content.9 MORE OPPORTUNITIES FOR GROWTHc 97.8% of companies with a strong culture of learning offered opportunities for growth vs. 86.8% of average companies MORE PEOPLE ATTENDING MORE TRAININGd Employees in companies with a strong culture of learning attended an average of 4.5 company- provided training sessions during the past year vs. 3.5 in average companies Culture of Learning Company Loyalty Employee Engagement WORKPLACES WITH A STRONG CULTURE OF LEARNING EXCELLED AT PROVIDING THEIR PEOPLE WITH A MORE EFFECTIVE LEARNING EXPERIENCE, WHICH WAS ALSO TIED TO EMPLOYEE ENGAGEMENT.e â€șâ€ș 50% â€șâ€ș 40% â€șâ€ș 30% â€șâ€ș 20% â€șâ€ș 10% â€șâ€ș 0% Average Companies Companies with a Strong Culture of Learning 0-1 2-3 4-5 6-7 8-9 10+ # of Trainings Attended â€șâ€ș 4 c Differences were statistically significant, chi-square (3, N = 2000) = 166.439, p < .001 d Differences were statistically significant, F(2, 2255) = 49.727, p < .001, eta-squared = .042
  • 8. This company's values and culture provide a good fit with the things that I value in life. I would be happy to spend the rest of my career with this company. I feel a sense of belonging in my company. My personal values mach my organization's values and culture. I feel like I am “part of the family” at this company. This company has personal meaning to me. I feel as if this company's problems are also mine. We understand that top talent demands good culture.11 While we don’t know which came first, the culture or the opportunities to grow, we now know that the right mixture makes a difference. By adopting a culture of learning, you can lay the groundwork for a workforce that’s ready and willing to contribute to your company’s success. If you don’t, your competitors will. Design for Loyalty PEOPLE USED TO SPEND THEIR ENTIRE CAREERS WORKING FOR ONE COMPANY, BUT NOW ... “If you love your company and want to spend your career there, you are essentially a unicorn in the job market, but you’re still not as rare as the company you work for, provided they deserve your devotion.”12 —Jen Hubley Luckwaldt, “What Inspires Us to Be Loyal Employees” Is this perception real? We set out to challenge conventional wisdom that company loyalty is a thing of the past. We discovered that loyalty today is different and that those rare companies investing in their employees do in fact get a return on their investments. FOCUS ON ALIGNMENT OVER LONGEVITY Company commitment or loyalty can take many forms. People can commit to the cause without committing to a single company. Likewise, people can commit to their company without committing to their current job. Our survey examined the latter and we asked people about their feelings toward their current workplace.13 FACTORS OF LOYALTY THAT HR CAN ESTABLISH LOYALTY NO LONGER MEANS YEARS OF SERVICE During the past 15 years, employers have seen a decline in the number of people who stayed at one company for 20 years or more; it dropped from 3 in 10 people in 1996 to just over 2 in 10 by 2012.14 But longevity in your workforce doesn’t necessarily mean employees align with your company’s values and goals. It also has nothing to do with productivity. We looked at the number of years employees worked for a company and found a very weak association with company loyalty. It was nearly the same whether someone worked for the company just a few years or more than 30 years.f EMPLOYEES’ SENSE OF LOYALTY TO 72.9% 72.5% 72.4% 72.2% 69.8% 59.4% 69.2.% A STRONG CULTURE OF LEARNING CAN IMPACT MORE THAN EMPLOYEE OUTCOMES. IN FOCUSING ON ALIGNMENT, WE SAW THAT A MAJORITY OF PEOPLE CONSIDERED THEMSELVES LOYAL. â€șâ€ș 5 e Design Aspects were used significantly more in workplaces with a Strong culture of learning: 1. F(2, 2263) = 82.246, p < .001, eta-squared = .068 2. F(2, 2263) = 102.581, p < .001, eta-squared = .083 3. F(2, 2263) = 85.098, p < .001, eta-squared = .070 4. F(2, 2263) = 116.802, p < .001, eta-squared = .094 5. F(2, 2263) = 88.341, p < .001, eta-squared = .072
  • 9. â€șâ€ș 7 â€șâ€ș 6 â€șâ€ș 5 â€șâ€ș 4 â€șâ€ș 3 â€șâ€ș 2 â€șâ€ș 1 â€șâ€ș 5 10 15 20 25 30 Years at Company AverageCompanyLoyalty Our work focused on alignment; when organizational values matched personal values, millennials were no more or less loyal to their company than baby boomers or Gen Xers.g INVEST IN YOUR PEOPLE, YOUR PEOPLE INVEST IN YOU Loyalty now represents how strongly you and your people share organizational goals—and how passionately they’ll work to accomplish those goals. Because loyalty is tied to engagement and both are tied to culture, companies can invest in learning and organize employees’ viewpoints around shared goals. Well-Rounded Culture, Well-Rounded Company We’ve offered plenty of reasons why a stronger culture of learning is better and why companies should adopt effective training designs. But looking even deeper into your company’s challenges, we see both of these as part of the organization. Growth, whether it’s measured by increased revenue or increased productivity, improves the health of your company. One of the most impactful factors on productivity is retaining your best employees— the ones who are agile, continuous learners, and innovators.17 Without high-performing employees, you lose productivity, and without great leadership, even great employees can’t do what they do best.18 â€șâ€ș 7 â€șâ€ș 6 â€șâ€ș 5 â€șâ€ș 4 â€șâ€ș 3 â€șâ€ș 2 â€șâ€ș 1 â€șâ€ș 1 2 3 4 5 6 7 Training Effectiveness AverageCompanyLoyalty EMPLOYEES’ SENSE OF LOYALTY TO YOUR COMPANY DOESN’T PREDICT HOW LONG THEY'LL WORK FOR YOU, AND THAT'S A GOOD THING. WHEN ALIGNMENT IS THE FOCUS, GENERATIONAL DIFFERENCES DISAPPEAR Research by Deloitte suggests that if given the choice, 25 percent of millennials would quit their current jobs in one year; 44 percent would quit in two years; and only 16 percent would plan to stay with their current employers for 10 years.15 Much of Deloitte’s research points to a mismatch between millennials’ personal values and organizational goals.16 LOYALTY AMONG THE GENERATIONS Baby Boomers = 85.4% Gen Xers = 87.8% Millennials = 87.4% â€șâ€ș 6 f Years of Service and Loyalty, r (2264) = .119, p < .001 Years of Service and Productivity, r (2264) = -.010, p = .623
  • 10. Our findings also draw connections among company culture, productivity, good leadership, engagement, effective training, and loyalty to the company. While we don’t know what comes first, we do know that all of these facets of a company are related. Recognizing Your Culture’s Place ALIGN YOUR CULTURE Loyalty isn’t the same as longevity. Working at a company longer doesn’t amount to more loyalty or productivity. When you think about loyalty, you should think about developing your employees whose values and goals are aligned with those of your company. It’s a collaboration where everyone and every part matters— to the company, to your leaders, and to your bottom line. Align Your Values LEADERS RATE THEIR OWN SKILLS HIGHER THAN EMPLOYEES. Leaders rate themselves: 4.17 Employees rate their leaders: 3.39h IN COMPANIES THAT DON’T VALUE LEADERSHIP, THE DIVIDE IS EVEN WIDER. Leaders rate themselves: 4.09 Employees rate their leaders: 2.58i IN COMPANIES THAT VALUE LEADERSHIP, THE GAP IS CLOSED. Leaders rate themselves: 4.45 Employees rate their leaders: 4.20j It’s About Alignment & Improvement Employee Engagement Company Productivity Company Growth Leadership Skills Effective Training Culture of Learning Effective Training Effective Training Company Loyalty Employee Engagement Leadership Skills Company Growth Culture of Learning Company Loyalty Employee Engagement Company Growth Leadership Skills Company Productivity Low ( r = .15 - .29) Moderate ( r = .30 - .49) Strong ( r = .50) â€șâ€ș Correlation Correlation Strength â€șâ€ș 0 1 2 3 4 5 6 â€șâ€ș 5 â€șâ€ș 4 â€șâ€ș 3 â€șâ€ș 2 â€șâ€ș 1 AverageRatingofLeaderAbilities Leader Abilities Valued by Company Employee Manager .369 .394 .535 .344 .466 .606 .372 .465 .559.722 .158 .250 .213 .243.227 .257 .435 .323 .329 .357.354 â€șâ€ș 7
  • 11. Develop Your Leaders WHILE MOST LEADERS ARE PROMOTED FROM WITHIN, IT'S GOOD TO HAVE A MIX OF INTERNALLY-PROMOTED AND EXTERNALLY-HIRED LEADERS. MOST INTERNAL PROMOTIONS GO TO TOP PERFORMERS 39.4% Externally Hired 60.6% Internally Promoted 26.9% I was the top performer in my department. 8% I asked to be a manager. 11.5% I was groomed to be a leader. 11.3% I was promoted as a form of reward. 1.5% There was no one else for the job. 10.1% Others saw me as a natural leader. 15.9% I had the most technical knowledge among my colleagues. 14.8% I was given a promotion because of my education/background. MOST EXTERNAL HIRES APPLY FOR AN OPENING 21.8% I was referred by a colleague or a friend. 46.7% I applied for an opening. 31.5% I was recruited by my company. â€șâ€ș 8
  • 12. + - - - JUST HALF OF CURRENT LEADERS ENTERED THEIR ROLES PREPARED. 39.4% had previous experience 11.5% were groomed to be leaders 50.9% were prepared to lead Leadership in Crisis Most employees said leaders are promoted from within, but less than half (44.4 percent) of employees are actively being developed for future leadership positions. No matter how you do the math, many leaders are not getting the learning opportunities they need. 79.2% of departments promote from within 44.4% 34.8% 78.0% of companies promote from within 44.4% 33.6% 76.5% of leaders were internally promoted 44.4% 32.1% The 6 Essential Skills Every Company Should Value HR and L&D departments are facing two big challenges as baby boomers begin to retire: companies are losing some of their best leaders and struggling to find people with hard skills.20 But filling the soft skills gap may be more challenging than we thought. A leader’s soft skills can help to create agile and innovative organizations, and make a company one of the best places to work.21 Research from DDI World, an international human resources consulting firm, identified critical competencies for leaders that overlap with these skills.22 But according to the people we surveyed, their companies rarely valued them. THE SKILLS YOUR LEADERS NEED Decision Making, Delegating, Problem Solving (evaluating alternatives, making timely decisions, and assigning tasks and responsibilities to individuals or teams) Communicating (clarifying purpose, developing ideas, and agreeing on next steps) Technical Knowledge & Expertise (applying skills to improve processes, procedures, and operations) Planning & Organizing (setting priorities, establishing timelines, and leveraging resources) Coaching/Mentoring (preparing employees to excel in new challenges and addressing performance problems) Gaining Commitment (building trust, encouraging two-way communication, and strengthening relationships) BETWEEN 32.1% AND 34.8% OF FUTURE LEADERS MAY NOT DEVELOP THE SKILLS THEY NEED TO SUCCEED. 53% 48.6% 47.1% 37.1% 30.5% 27.8% â€șâ€ș 9 g Differences were non-significant, F(2, 2224) = 1.170, p = .310 h t (2264) = 22.6473, p < .001 i t (336) = 16.084, p < .001 j t (146) = 1.9225, p > .05
  • 13. VIEW LEADER DEVELOPMENT AS THE SOLUTION Employees’ perceptions of how much their companies value these skills varied widely. It may be difficult for companies to show that they value these skills or hard for employees to recognize that their companies value them. And while we don’t know if the support or the good leaders came first, we do know that effective training and company support for a variety of trainings were positively related to company value for good leadership. CULTURE OF LEARNING = CULTURE OF LEADERSHIP If your company wants to stay competitive, you can’t afford to have poor leadership. Simply trusting that good leadership will happen isn’t enough. HR and L&D managers may feel that basic skills training satisfies the desire for leaders to learn more. But educating your current and future leaders on these soft skills is essential to your company’s culture and health. Make culture and development priorities instead of afterthoughts. FEW COMPANIES VALUE ALL 6 SKILLS THE CASE FOR DEVELOPING YOUR LEADERS Your leaders can positively or negatively impact the health of your company.23 With great leadership in place, company culture is developed, not forced, because leaders can influence their teams’ engagement and loyalty.24 Valuing all five essential leadership skills can cultivate great leaders and, in turn, more engaged employees. A slight majority (54.5 percent) of the people we surveyed said that their company valued at most two of these essential leadership skills. The importance of these skills cannot be overstated. We found that companies who valued these skills also placed greater value on internal development. In these companies, employees appreciated their leaders more and productivity was higher. Well-Designed Training Employee Evals of Leaders Variety of Training Support Good Leadership Valued Variety of Training Support Value for Good Leadership Employee Evals of Leaders Company Productivity Variety of Training Support Value for Leadership Skills Employee Evals of Leaders Effective Training Low ( r = .15 - .29) Moderate ( r = .30 - .49) Strong ( r = .50 +) Correlation Strength 6.4% 8.3% 12.8% 17.9% 19.3% 20.4% 14.8% â€șâ€ș 0â€șâ€ș 6 â€șâ€ș 5 â€șâ€ș 1â€șâ€ș 4 â€șâ€ș 2â€șâ€ș 3 # of Skills Valued .431 .368 .293 .466 .312 .416 .435 .370 .321 .323 â€șâ€ș 10
  • 14. The Impact of Leadership Developed DO YOUR EMPLOYEES HAVE A GOOD RELATIONSHIP WITH THEIR LEADER?25 Do they
 ‱ Like their leader as a person? ‱ Think their leader is the kind of person that they would like to have as a friend? ‱ Know that their leader would defend their work if needed? ‱ Do work for their leader that goes beyond what is expected? ‱ Apply extra effort, or go beyond what is specified in their job description? ‱ Feel impressed with their leader's knowledge and competence? ‱ Admire their leader’s professional skills? A MAJORITY OF EMPLOYEES SAID THEY LIKE THEIR BOSSES (WEIRD, HUH?!) Seven Signs Like Leader Good Friend Defend My Work Beyond Expectations Extra Effort Leader Knowledge Professional Skills â€șâ€ș 5 â€șâ€ș 4 â€șâ€ș 3 â€șâ€ș 2 â€șâ€ș 1 â€șâ€ș 1 2 3 4 5 6 7 Employee/Leader Relationship EmployeeRatingLeader'sSkills EMPLOYEES WHO RATED THEIR LEADERS’ SKILLS HIGHER ALSO HAD A BETTER WORKING RELATIONSHIP WITH THEM.k YOUR LEADERS ARE THE LIFEFORCE OF YOUR CULTURE Strong culture—it’s what attracts top talent. Strong leadership—it’s a matter of your company’s longevity. By valuing crucial skills, you can improve the quality of your leadership and inspire engaged employees who align with your company’s mission. Your company needs the right kind of culture and the right kind of leadership. We’ve shown you what they are and how your company can benefit. The rest is up to you. 80.2% 66.1% 79.6% 81.4% 89.2% 73.6% 73.2% Percentage of People Who Agreed â€șâ€ș 11 k r (2264) = .776, p = .0001
  • 15. · · · REFERENCES · · · 1 Irvine, Alison K., and Sean Morris. Preparing Employees for the Future: Challenges for Learning Organizations Today. Instructure, Salt Lake City, UT, 2016 www.getbridge.com/pdf/2016_2_Workforce_ Learning_WP_R_and_Ed_US.pdf. 2 “Organizational Culture.” Wikipedia.org, 2016. https://en.wikipedia.org/wiki/Organizational_culture. 3 Craig, William. “What Is Company Culture, and How Do You Change It?” Forbes. Jersey City, NJ, October 2014. http://www.forbes.com/sites/williamcraig/2014/10/24/what-is-company-culture-and-how-do-you- change-it/#7889e28e3e4a. 4 Bersin, Josh. “Culture: Why It’s The Hottest Topic In Business Today.” Forbes. Jersey City, NJ, March 2015. http://www.forbes.com/sites/joshbersin/2015/03/13/culture-why-its-the-hottest-topic-in-business- today/#72d5e5b6e28c. 5 Chamberlain, Andrew. Does Company Culture Pay Off? Analyzing Stock Performance of “Best Places to Work” Companies. Mill Valley, CA, 2015. https://www.glassdoor.com/research/studies/does-company- culture-pay-off-analyzing-stock-performance-of-best-places-to-work-companies/. 6 Bersin, Josh. “5 Keys to Building a Learning Organization.” Forbes. Jersey City, NJ, January 2012. http:// www.forbes.com/sites/joshbersin/2012/01/18/5-keys-to-building-a-learning-organization/2/#791b15b029c7. 7 Mallon, David. High-Impact Learning Culture: The 40 Best Practices for Creating an Empowered Enterprise, 2010. 8 Nabong, Tala A. “Creating a Learning Culture for the Improvement of Your Organization.” Workforce Development, 2015. 9 Salas, E., S. I. Tannenbaum, K. Kraiger, and K. A. Smith-Jentsch. “The Science of Training and Development in Organizations: What Matters in Practice.” Psychological Science in the Public Interest 13, no. 2 (June 1, 2012): 74–101. doi:10.1177/1529100612436661. 10 Bersin, Josh. "Culture: Why It’s The Hottest Topic in Business Today." 11 Ibid. 12 Jen Hubley Luckwaldt, “What Inspires Us to Be Loyal Employees?”. Accessed September 1, 2016 http://www.payscale.com/career-news/2013/08/what-inspires-us-to-be-loyal-employees. 13 Meyer, John P., Natalie J. Allen, and Catherine A. Smith. “Commitment to Organizations and Occupations: Extension and Test of a Three-Component Conceptualization.” Journal of Applied Psychology 78, no. 4 (1993): 538–51. doi:10.1037/0021-9010.78.4.538. 14 Elmer, Vickie. “50-plus Years on the Job: An Extremely Rare Bird.” Fortune, February 2014. http://fortune. com/2014/02/28/50-plus-years-on-the-job-an-extremely-rare-bird/. â€șâ€ș 12
  • 16. 15 The 2016 Deloitte Millennial Survey: Winning over the next generation of leaders http://www2.deloitte. com/content/dam/Deloitte/global/Documents/About-Deloitte/gx-millenial-survey-2016-exec-summary.pdf. 16 Ibid, Deloitte, 2016. 17 Sullivan, John. “Increasing Employee Productivity: The Strategic Role That HR Essentially Ignores | ERE.” ERE | Recruiting Intelligence, 2011. http://www.eremedia.com/ere/increasing-employee-productivity-the- strategic-role-that-hr-essentially-ignores/. 18 Ibid, Sullivan, 2011. 19 Krell, Eric. “Weighing Internal vs External Hires.” SHRM, 2015. https://www.shrm.org/hr-today/news/hr- magazine/pages/010215-hiring.aspx. 20 Higginhottom, Karen. “Challenges for HR Directors in 2016.” Forbes, 2015. http://www.forbes.com/sites/ karenhigginbottom/2015/12/30/challenges-for-hr-directors-in-2016/#1a3b57a75ae2. 21 Phillips, Jack, and Patti Phillips. “Derive Hard Numbers from Soft Skills.” LinkedIn Pulse, 2015. https:// www.linkedin.com/pulse/derive-hard-numbers-from-soft-skills-jack-and-patti-phillips. 22 Scott Erker, and Bradford Thomas, “Finding the First Rung: A study on the challenges facing today’s frontline leader” PDF file http://www.ddiworld.com/ddi/media/trend-research/findingthefirstrung_mis_ddi. pdf. 23 Rietsema, Dave. “Importance of Leadership in Business.” HR Payroll Systems, 2015. http://www. hrpayrollsystems.net/importance-of-leadership-in-business/. 24 Anderson, Amy. “Good Leaders Are Invaluable to a Company, Bad Leaders Will Destroy It.” Forbes, 2013. http://www.forbes.com/sites/amyanderson/2013/01/14/good-leaders-are-invaluable-to-a-company- bad-leaders-will-destroy-it/#62179d9625b6. 25 May, Douglas R., Richard L. Gilson, and Lynn M. Harter. “The Psychological Conditions of Meaningfulness, Safety and Availability and the Engagement of the Human Spirit at Work.” Journal of Occupational and Organizational Psychology 77, no. 1 (March 2004): 11–37. doi:10.1348/096317904322915892. â€șâ€ș 13
  • 17. · · · APPENDIX: ABOUT THE RESEARCH · · · This research for Bridge by Instructure, with the help of Qualtrics, was a follow-up to previous work. In the spring of 2016 we surveyed 2,246 people all over the United States. Men and women were equally represented as were the generations: 39 percent were baby boomers, 31 percent were Gen Xers, and 30 percent were millennials. Our sample also represented managers and employees equally (49.9 percent and 50.1 percent, respectively). And our participants came from a wide range of industries: Industry Arts, Entertainment, or Recreation Construction, Utilities Educational Services Finance or Insurance Government Healthcare or Social Services Hospitality or Food Services SaaS, Technology Management of Companies Manufacturing or Wholesale Real Estate or Rental and Leasing Retail or Sales Transportation Other Total N 64 108 192 272 236 276 92 215 49 207 47 271 106 129 2,264 Valid Percent 2.8% 4.8% 8.5% 12% 10.4% 12.2% 4.1% 9.5% 2.2% 9.1% 2.1% 12% 4.7% 5.7% 100% â€șâ€ș 14