The Pandemic Effect on Organizational Wellness

29 June 2021
12 min read

The challenges of the COVID-19 pandemic have reinforced the importance of organizational wellness and made it more challenging to maintain. But the stakes are high, with wellness a major driver of organizational performance, talent retention and recruitment.

We asked experts in the medical and investment management industries to provide a deeper perspective on organizational wellness, how to maintain and assess it, and the moving parts as leadership teams lay out a pathway for returns to offices.

Every organization is made up of individuals, and the pandemic has had profound effects on so many people. Can you share with us some of the lingering issues that firms should expect employees to still be coping with even as they return to offices in some form?

Dr. Lindsey McKernan, PhD, MPH, Associate Professor, Psychiatry and Behavioral Sciences, Vanderbilt University Medical Center: The pandemic created a unique mix of challenges. Many people have suffered elevated levels of anxiety and depression, trauma, physical strain (such as chronic fatigue), grief and burnout. Protecting themselves and loved ones from the pandemic while logging many work hours was an intense and protracted source of stress.

We all cope differently when met with stress. While one person may retreat, another could dive into work for distraction or to feel more in control. Some workers endured periods of withdrawal and may have seen work performance suffer—being late on deadlines they normally would have met, missing or being late for meetings. Other staff may have coped by being extreme overproducers who sacrificed much more than normal—late-night emails, green lights always on, severely blurred lines between professional and personal.

We need to be mindful of grief and loss when reconnecting with our employees. Grief was a common factor among many. Some may have lost loved ones and friends, and many of us have lost out on parts of our lives and our children’s lives that we never expected to miss. A number of studies have shown that connections to people who have died from COVID-19 are surprisingly widespread. In one US survey, one in three respondents knew someone who passed away from the virus. Grief is complex and lasting.

All of these aftereffects will be present to some extent in returning colleagues. It’s also important to know that grief can be intensely private for some, and you may not know the extent of loss a person has suffered through the pandemic.

Remote work necessarily balances safety and collaboration. What considerations (safety, logistics, productivity, personal interactions, flexibility) are in the mix as you enter the “return to office” era, whether it’s hybrid or fully in office? What’s top of mind?

Lee Georgs, Chief Operating Officer and Executive Board Member, Redington: Our Health Committee, which was set up during the first few weeks of the March 2020 lockdown, is driving our return-to-office policies. But we’re also listening to team leaders, business leaders and individual employees. We hope to phase back into the office gradually once the government lifts restrictions.

It’s a bit complex logistically: we've hired extensively during the pandemic, but our office footprint hasn’t grown so we need to implement both a hybrid working model and hot-desking system at the same time. We want to stay connected in the phased return, so we’ll experiment until we get it right. Our headquarters in London is a traditional open floor plan arrangement, which means we’re looking at ways to keep people focused and efficient in a naturally louder, more energetic environment. Headphones are a start, but there’s more to be done.

We’re planning to start with a three/two model, with most people in the office three days and home two. Initially, we’ll bring full teams in together, rather than splitting them. We’ll need to balance intra and inter-team touch points and collaboration but, with many new people, we feel strongly about the need to solidify teams. Of course, we’ll learn and adapt as we go.

Nicole Hartigan, Head of People and Culture, Frontier Advisors: Top of mind is retaining the benefits of collaboration and the synergies from many minds working toward solutions for our clients. You can collaborate remotely, but there’s a lot of value from interactions that happen in person and within groups—often from those who may otherwise be on the periphery of an issue. Good solutions are often an amalgam of ideas or observations that might not otherwise connect without the extra dimension that in-person interactions provide.

We’re encouraging our team to aim to be together two days each week (Tuesday and Thursday). On those days, we can more easily hold team meetings, including firmwide meetings. Having as many of our people together as possible is also invaluable in keeping that sense of camaraderie and connection that is so important in maintaining our strong culture. And being a part of a strong team culture is critical to the personal satisfaction and fulfillment we each gain from our jobs.

Dr. Lindsey McKernan: Even for workers initially coming in on a limited number of days, it’s their first time in an office in over a year—and a massive environment change. Any transition is fertile ground for a stress response, and could resurface pre-existing or dormant mental health challenges.

Organizations must put a high priority on compassion and empathy, supporting colleagues as they seek a new sense of stability. Communication has to be consistent, open and transparent at all levels to keep people anchored. Respect new boundaries between work and home: they’ve been blurred, and they need to become less blurred.

For those returning, organizations should encourage them to take stock of how they feel about it. It’s important to acknowledge these feelings and to normalize the sense of discomfort a person feels, emphasizing that you can move through it together. Also, encourage employees to consider the benefits of coming back: What aspects of work—and teamwork—could improve by connecting in person? How could the boundaries between the office and home work in your favor?

How has the mix of benefits, including wellness, evolved as a result of the COVID-19 pandemic? What elements have you introduced or expanded to keep the work/life balance as healthy as possible—and how did the delivery of those benefits adapt to a remote environment?

Lee Georgs: The combination of physical and mental effects of the pandemic are different for everyone; some employees or loved ones have become ill, compounding the mental strain. People with long COVID-19 symptoms have needed extra sick days, medical help and support. We’ve adjusted schedules to allow people to return in a way that works for them and doesn’t overburden them as they recover.

For some, childcare and homeschooling are big issues. For others, household members are frontline workers—doctors and nurses—and have needed flexible schedules. In one instance, we arranged medical care and therapy for an employee whose home office setup created physical issues—so we assessed the specific needs of the individual and then upgraded their equipment. Some people have needed extra mental health support (which we’ve facilitated) as well as more time away from the office to get well.

It’s important to be open about the challenges we face, so we’ve had senior leaders share their own struggles. Knowing—and seeing—that someone else is experiencing the same issues as you creates a stronger sense of community and a feeling that you can speak up and ask for help. This is especially important when remote work prevents “casual collision opportunities”: stumbling across a colleague during the course of the day, which is only possible in a physical setting.

Nicole Hartigan: To promote wellness, our team has taken on personal exercise challenges and group challenges coordinated remotely. Beside the personal benefits, they provide fun and healthy competition between teams. An area of our intranet is set aside for staff to post pictures of what they’re up to and to set a challenge for others to match. Often this involves family, a nice way for us all to learn a little more about out colleagues’ lives if they wish to share.

In the office, we’ve been providing staff with healthy snacks. Because of limitations around the communal use of our kitchen and food preparation areas, it’s been important to enable colleagues to come together again in the breakout area for conversations away from their desks. Providing pre-made healthy sustenance has been a way of encouraging that.

While working remotely, we’ve staged many social events virtually, ranging from trivia quizzes to birthday and farewell presentations as well as regular end-of-week drinks and catch-ups. It’s hard to replicate social events remotely, but it’s also vital to celebrate milestones and come together. With some imagination and creativity, virtual celebrations can be great fun.

Tell us how you’re working to retain top talent whose priorities may have changed as a result of the pandemic? What benefits, including work/life balance, are prospective employees looking for in an organization post-COVID-19? What’s the best way to remain competitive in attracting top talent?

Lee Georgs: We have a history of embracing flexible working and trying out different working arrangements to accommodate family needs or personal circumstances. I think that's going to become more and more the norm going forward. Psychologically, people have been through a war, and this will reverberate for years to come.

We need to create work environments that suit people's home, family and outside commitments: to find a way for people to continue contributing in a way that works for both them and the company. Experienced people are a little more practiced at flexing that muscle, but it’s harder to do that early on in your career.

I don’t know if the ultimate answer is a hybrid working environment, but we also don't want to move into an environment where those in the early stages of their careers are all in the office and those that are more senior and established are working from home. We have to find a way to help everyone thrive.

Nicole Hartigan: The fundamentals of retaining talent remain. Challenging and interesting work, a sense of purpose, recognition for effort, the ability to balance work and life and a positive team culture are all key for most people. Remaining more than competitive in what we can offer our team across these areas is as much of a priority as it was pre-COVID-19.

We already offered a lot of flexibility in working remotely, but the pandemic has accelerated that. Employees and clients are now alert to the opportunities of different ways of working. We need to not just respond to that but to proactively encourage and support our people in finding a balance that works for them and their teams. Ultimately, that balance will provide the best results for our staff, our firm and—most importantly—our clients.

People want to work for organizations that will support them in achieving great outcomes and be part of something that they can feel proud of. The pandemic has likely increased the importance of purpose in all areas of our lives. Good people will always want to work in organizations with strong values and a clear purpose.

In what ways has culture had to evolve and adapt during the pandemic? What role does leadership play in maintaining a diverse, inclusive culture that addresses all employees’ needs while ensuring cohesiveness and overall wellness? How can you determine the mental and physical wellness of an organization—as opposed to that of an individual?

Lee Georgs: Culture is a living, breathing, amorphous thing that firms need to look after as the number one priority. It’s going to change and evolve—it has to evolve. What you must fiercely defend are the parts of a culture that are non-negotiable.

We conduct a quarterly pulse survey to find out how we’re doing on engagement, alignment and culture. We drill down by team, business line, gender, ethnicity and seniority. It’s not a perfect measure, but it's our temperature check. It’s especially important when we're not in the office—it includes gauging the opinions of those individuals hired during the lockdown who have never been to our office or met one another.

I have no doubt the virtual environment has impacted our culture, as will the eventual return to in-person contact. We need to hold onto cultural pillars: call out behaviour that doesn’t align with our values and ask for and give feedback regularly across the company. We’ve always tried to instil these habits; we’ve worked harder at it during remote work and will continue to work at it in a hybrid environment.

Nicole Hartigan: We all have a role to play in building a strong culture that thrives in any situation. But, it’s clear that leadership lays the foundations and is responsible for gauging the health of an organization’s culture—and for providing any nudges required to stay on track.

Leaders regularly checking in on individuals and genuinely seeking their ideas and impressions is critical in gauging organizational health. Communicating business strategy and financial health is important, but listening to the way each team member sees the strategy and hearing their ideas is the only way to really understand an organization’s mood. Looking for different perspectives and experiences within the team will reveal the level of cohesiveness that exists, and will also unearth challenges and opportunities.

Harnessing the benefits of diversity is more than just recruiting a team with diverse backgrounds. The benefits come from ensuring that everyone has the chance to contribute and share their unique insights and experience. Being able to blend a broader set of experiences and perspectives, rather than expecting diverse thought to adapt to existing practices, provides the most complete and original solutions and keeps an organization fit.

How much of a priority is investing with asset managers that emphasize wellness? How can you determine if a firm is aligned with your view of wellness? Are there attributes you look for or questions you ask? Is there specific data (e.g., employee retention data, engagement surveys, etc.) to quantify the wellness of the asset manager? What’s the biggest challenge in assessing organizational wellness?

Lee Georgs: Wellness is critical because it influences so much of how organisations do business. As part of our ongoing due diligence process, we require detailed questionnaires from our asset managers and vendor partners. They cover many aspects, including ESG and I&D [inclusion and diversity], both of which are vital to wellness. These, and many other wellness aspects, flow into an asset managers’ decision-making processes, which is critical.

Decision-making groups experience all kinds of phenomena; not all of them good. If the highest paid person in the room speaks and everyone agrees, why even have a group? You must elicit different perspectives so that issues are surfaced, heard, discussed and evaluated in order to establish a better decision-making process. It’s crucial that the organisational make-up is diverse if you want to be able to draw out different perspectives and ultimately reach complex, difficult decisions.

As investment consultants, we work very hard to ensure that every member of the pension trustee boards and investment committees we work with understand the decision-making levers at play. It’s important that every person in the room has a voice and contributes to the ultimate decision. That’s no different to a portfolio management team at an asset manager that we’re assessing. It’s only by ensuring everyone at the table has a voice that is considered that we can ensure we are making the best possible decisions in order to progress against our agreed objectives.

Nicole Hartigan: We’ve always assessed the cultures of managers we evaluate, but we’ve increased scrutiny of this area and the need to measure elements that contribute to culture. We are also in the process of building out a more rigorous, repeatable framework for assessing and monitoring culture within our asset-manager research program.

The program revolves around eight principles that underpin a defined, repeatable process. They include areas such as inclusiveness and diversity, an embedded fairness and equality within businesses, and the desire and courage to disclose shortcomings and improve. With recent innovations, we’re collecting a lot more data from managers on retention and diversity, which will enable us to track this through time and across managers.

In addition to desktop research of material provided by managers, our assessment involves multiple discussions with a range of staff over a long time. We then triangulate the evidence contained in available data with our observations in order to test consistency and authenticity. Most asset managers have a convincing corporate story, but it’s only when we develop an understanding of the intricacies of culture that we can truly assess an organization’s wellness.

The views expressed herein do not constitute research, investment advice or trade recommendations and do not necessarily represent the views of all AB portfolio-management teams.