Organizations are overheating… And we’re not talking about the warm weather.
The Dutch job market is drying up. As a result, organizations are increasingly offering permanent contracts. This significantly reduces the (financial) flexibility of organizations.
Due to the tightened regulations on false self-employment as of January 1st in the Netherlands, the ability to quickly build a flexible workforce has also become much more difficult.
And when you add to that the fact that our productivity has been stagnant for some time, it creates a difficult mix for organizations that are already financially struggling due to rising costs.
The solution must come from a different angle and involves a tough dilemma:
Productivity per employee must increase to remain financially sustainable.
The employer must become more attractive to find and retain employees.
Many organizations will have to resist the urge to deal with this uncertainty through top-down micromanagement. Of course, clarity is important, but nothing demotivates a team faster than mismanagement. You might achieve short-term success, but it will only worsen the long-term problem.
The breakthrough lies in developing a healthy culture— a work environment that benefits both employees and the organization. These can go hand-in-hand if you know how to organize it.
A crucial first step is understanding what an unhealthy culture looks like. For example, it's a culture where people's basic psychological needs (autonomy, competence, connection, justice, and status) are frustrated. And, as mentioned earlier, where top-down micromanagement is used.
Culture is therefore a key driver behind a healthy and well-functioning organization.
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