Dare more optimism, strengthen the sense of “we”: How Germany can emerge from the crisis
We live in turbulent times. The world is full of unrest, tensions, and wars. Political upheavals and social disruptions are also felt in Germany, many of us experiencing them firsthand, even deep into our private lives.
Household chaos, economic slowdown, inflation, climate damage, job worries due to artificial intelligence, military conflicts, tendencies toward division and polarization on many levels, fears about the future – all of this is currently weighing on people’s moods.
In numerous companies that have only just struggled their way out of the Corona and energy crises, the demographic-driven labor shortage is becoming increasingly problematic. The outlook is not very encouraging.
A spirit of renewal? Optimism? Euphoria? Rather the exception.
How strongly the general situation influences thinking and feeling in large parts of the economy is shown by a new study from Jenewein AG, based in St. Gallen, Switzerland. The company, specialized in executive training and coaching, has just published the “Confidence Index 2024.”
For the survey, in spring 2024 nearly 1,000 employees in the DACH region (Germany, Austria, Switzerland) were asked how confidently they approach their daily work and what they see as their biggest challenges. The study thus provides a deep insight into the mindset of especially German companies.
The participants represent a wide range of industries such as IT, banking, industry, automotive, logistics, construction, chemicals and pharmaceuticals, retail, public sector, and other services. Twenty-eight percent of respondents were in leadership positions.
The results appear, at first glance, alarming:
- Only 40 percent of employees believe that the best times for their company are still ahead; among leaders, it is just 51 percent.
- Only 41 percent of employees and 52 percent of leaders believe that their company has “an attractive future vision that excites me.”
- 43 percent often feel more like being driven than driving developments within the company; among leaders alone, it’s 35 percent.
- 36 percent of employees and even 38 percent of leaders report that their work environment drains more energy from them than it gives.
- 38 percent are worried about how their company will withstand upcoming crises and challenges.
- 30 percent see the acute risk that their company will be left behind due to too slow changes.
- 29 percent are concerned that their employer is not attractive enough for younger generations.
- 20 percent consider the leaders in their company to be overwhelmed.
- Only 47 percent say they can actively shape the changes in their company.
- Only 47 percent of employees and 50 percent of leaders say that in their company, “people matter at least as much as numbers.”
- Only 60 percent feel like part of a real community at work.
- Only 50 percent can rely on people in their company to support each other instead of pursuing self-interest, and 23 percent even report that they cannot consistently depend on their colleagues.
- Only 52 percent feel they can openly share at work what truly moves them.
The study authors at Jenewein consider the results at least partly concerning. They regard it as “problematic” that in many companies there appears to be no real sense of community and a lack of belief that everyone is pulling in the same direction.
Especially for companies undergoing a transformation, this is “an alarming signal,” the survey states. “Where individual interests take priority, collaboration and performance suffer significantly.”
Conversely, the survey finds: “Those who can trust that their colleagues consistently support one another are, on average, 21 percent more confident that the best times are still ahead.” And those who feel part of a true community at work are “20 percent more confident” about the company’s future.
This confidence, in turn, increases loyalty to the employer: “Where people are confident, they have a 32 percent higher intention to stay with their current employer.”
Regarding attractive future visions, the Swiss consultancy notes: “Those who report being excited about their organization’s future vision have a 50 percent higher intention to remain with the company in the foreseeable future.”
The study’s results made it clear: “Those who want to retain top talent in uncertain times and successfully position themselves for transformation are well advised not to provide guidance solely through numbers and targets—but through the emotional impact of a future vision that moves and inspires people.”
Not only on this point do the authors use the sometimes sobering survey data as an opportunity to offer constructive suggestions and show leaders how they can proceed in the future.
The message is: “Yes, we have challenges. But we will overcome them. Now is not the time to bury our heads in the sand, but all the more to take action.”
Those who want to turn upheaval into a new beginning need above all confidence. This applies especially to people driving change. “Those who are confident are not deterred by setbacks or periods of high uncertainty – and they commit themselves to a better future.”
It’s not just about facts, figures, and arguments. The study emphasizes the need for a “positive, emotional momentum.” People can exceed themselves even in difficult phases “when they can rely on a deep sense of connection, self-efficacy, and autonomy.”
“Where people constantly have to cope with uncertainty, ongoing crises, and fears about the future, they eventually burn out and withdraw,” warn the Jenewein experts. The survey suggests that in many companies, confidence is currently being “systematically held back.” “This has problematic consequences for the ability to drive and manage profound change.”
Transformation succeeds when companies “become a true community, where people believe in a better future even in turbulent times—and passionately commit to shared success.” When people are empowered in their confidence, they can “achieve incredible things together—regardless of what the future holds.”
This article was published on June 16, 2024, on Focus Online.