Leading in an Age of Employee Activism

Employee activism is on the rise. Many are predicting it to become one of the key challenges that organisations must face in the coming years.

Employee activism is essentially defined as the collective effect that employees have on how an organisation operates in the context of socio-political factors and changes taking place in and around them.

In fact, according to the World Economic Forum;

• Despite continued fear of job losses during the global COVID-19 pandemic, 1 in 5 employees have either left their jobs or are planning to quit in the next six months, according to the Edelman Trust Barometer.
• Employees are becoming more “belief-driven” in the wake of the pandemic, with 6 in 10 of those changing jobs seeking a better fit between their own and their employer’s corporate values.
• The power balance in businesses has shifted to employees, and employee activism is now a force to be reckoned with.

Merran Brown, Reddin Group Partner, has been following the rise of employee activism closely and believes that it is set to become a defining feature of the modern workplace (if it hasn’t already).

“80% of US companies are anticipating a rise in employee activism in the coming year. With the current political landscape — the war in the Ukraine, gun reform, gender equality, LGBTQ+ issues, and of course, climate change and sustainability, there is little wonder that wider views, opinions and influences are finding their way inside the heart of organisations.

“This is coupled with the generational shift that is seeing Millennials and Gen Z forming a larger group in the workforce. They are a generation who have grown up with a wider capacity to communicate via internet and social media encouraging them to educate themselves on global issues and speak up when they see injustices occurring. This means that employees are not shy to hold their employer to account on social and political issues. Suddenly, the concept of ‘bring your whole self to work’ takes on even greater meaning. Organisations and their leaders need to be mindful that employees will bring their whole selves and expect them to be seen, heard and accommodated” Merran explains.

The impacts of employee activism are very real, with 60% of those changing jobs looking for a better fit with company values according to the World Economic Forum. Now more than ever leaders must be watching and adapting to the developing workplace, rather than fighting against it.

“Many employees have a view that organisations are socially and morally obligated to act in a way that benefits society, while making profit. It’s not a balance that everyone is used to managing,” Merran says. Old school managers are accustomed to working towards a better balance sheet. Now they have a raft of outcomes to manage and work towards.

Online tools like social media, external, or an internal tool such as Microsoft’s collaboration tool, Yammer, are designed to connect employees within large companies, making speaking up as a collective more attractive, less risky and quick to gain traction.

With this new employee consciousness and voice, come challenges, especially for those traditional leaders who find this space somewhat uncomfortable, but if leaders do not shift their thinking on employee activism, good people will walk out the door.

“That is not what you want in this current market where the war for top talent rages on, and it isn’t just about making grandiose statements. Organisations must walk the talk,” Merran says. They will be held to account.

“The challenge for leadership is that there is focus on something other than the bottom line and ROI. This is a new space entirely that requires leaders who are curious and willing to listen and more importantly, to listen and act,” she says.

The World Economic Forum says that those looking for work increasingly want to see their prospective employers pursue a greater purpose. And seeing a company pay only lip service to social commitments and other proclaimed values can be a dealbreaker.

“Alongside beliefs and values, there is also a strong emphasis on personal empowerment, such as the ability to provide input into the business. This reflects a decisive power shift towards employees, with 60% saying that employees in their organisation have more power to effect change now than before the pandemic.

More than three-quarters stated that they would take action to get the organisation to make changes. For most this is through internal employee activism, but 40% are prepared to take their cause outside the company, by going on strike, taking to social media or as whistle-blowers.” — World Economic Forum

Employee activism has the power to affect businesses both positively and negatively. However, as more and more employees speak out about socio-political issues, employees become more empowered and define the values of their workplace, while companies become more accountable about their operational practices.

“The change is already here in Australia. If you are not starting to think about how to work with your employees on social-political issues, and put in place practices that support them, you may just find yourself falling behind the eight ball,” Merran says.

For further industry news and insight, connect with Merran on LinkedIn.