Microsoft: Redefining High Performance in New Era of Work
The world of work has undergone a seismic shift in recent years. Remote and hybrid work models have become the norm rather than the exception, and emerging technologies like artificial intelligence are reshaping how we approach productivity and collaboration. In this rapidly evolving landscape, organisations are being forced to reevaluate what success means and how to achieve it.
A recent Microsoft study has shed light on the key factors that define high-performing organisations (HPOs), revealing that traditional metrics of success are no longer sufficient. Instead, a more holistic approach is required – one that balances financial performance with employee engagement and team productivity.
“As business leaders, today we find ourselves in a place that’s all too familiar: the unfamiliar,” says Jared Spataro, Corporate Vice President, Modern Work and Business Applications at Microsoft. “Just as we steered our teams through the shift to remote and flexible work, we’re now on the verge of another seismic shift at work, generative AI.
“The power of AI is real. It’s poised to tackle many of the pain points employees feel on a day-to-day basis: a swell of data, always-on communication, and information overload. It’s what we call the drudgery of work. But the true promise of AI lies in transforming work entirely, augmenting human ingenuity and unlocking high-performing organisations.”
The engagement-performance link
One of the most striking findings from Microsoft's research is the strong correlation between employee engagement and financial performance. By analysing data from over three million employees across 226 publicly listed companies, researchers found that organisations with the most engaged employees significantly outperformed the S&P 500, while those with the least engaged employees traded well below the market average.
“The power of AI is real. It’s poised to tackle many of the pain points employees feel on a day-to-day basis: a swell of data, always-on communication, and information overload. It’s what we call the drudgery of work. But the true promise of AI lies in transforming work entirely, augmenting human ingenuity and unlocking high-performing organisations.”
The engagement-performance link
One of the most striking findings from Microsoft's research is the strong correlation between employee engagement and financial performance. By analysing data from over three million employees across 226 publicly listed companies, researchers found that organisations with the most engaged employees significantly outperformed the S&P 500, while those with the least engaged employees traded well below the market average.
- 3 million+ employees surveyed
- 226 publicly listed companies analysed
- Most engaged organisations outperformed S&P 500
- Least engaged organisations traded below market average
This revelation underscores the importance of creating an employee experience that motivates and energises individuals to do their best work. In the post-pandemic world, where talent retention has become increasingly challenging, fostering engagement is more crucial than ever.
Microsoft report: The three pillars of high performance
Microsoft's study identified three interconnected pillars that characterise high-performing organisations (HPOs): engaged employees, productive teams and resilient business practices. HPOs excel at motivating their workforce, building positive team behaviours, and institutionalising high performance across the organisation while maintaining flexibility and agility.
As artificial intelligence continues to advance, it's playing an increasingly important role in shaping the future of work. HPOs are leveraging AI and other cutting-edge technologies to enhance collaboration in hybrid work environments, automate routine tasks, provide personalised learning opportunities, and analyse data to drive better decision-making. The challenge for organisations lies in integrating these technologies in a way that augments human capabilities rather than replacing them.
The Microsoft study highlights that many companies are still struggling to adapt to the new realities of work. To thrive in this new era, organisations must adopt a more expansive view of what constitutes high performance. This includes looking beyond traditional financial metrics to consider factors such as effective team collaboration, innovation capabilities, cultural resilience, employee engagement levels, and positive regard for leadership.
- Only 15% of surveyed leaders reported consistent high performance
- HPOs excel in 3 key areas: engaged employees, productive teams, resilient business
- Top performers balance financial results, productivity and employee engagement
- Employee engagement directly linked to financial outperformance
As we navigate this new landscape, organisations must be willing to evolve their practices, priorities, and technologies. This may involve investing in tools that facilitate seamless collaboration in hybrid work environments, prioritising employee well-being and work-life balance, fostering a culture of continuous learning, and leveraging AI and data analytics to gain insights into employee engagement and team productivity.
By embracing these changes and focusing on the three pillars of high performance – engaged employees, productive teams, and resilient business practices – organisations can position themselves for success in the ever-changing world of work.
******
Make sure you check out the latest edition of Technology Magazine and also sign up to our global conference series - Tech & AI LIVE 2024
******
Technology Magazine is a BizClik brand
