Work Arrangement Centers on Human Interaction, Not Physical Workspace
In the realm of Human Resource Management, a new study co-authored by Yasin Rofcanin and Pawan Budhwar, published in the Human Resource Management Journal, sheds light on the importance of micro foundations in shaping HR effectiveness. The researchers emphasize that HR success is not solely reliant on macro directives but on identity, cognition, emotion, meaning, and psychological resources at the individual level.
Rofcanin, the co-director of the Future of Work Research Centre, has shown that employees' engagement can wane when they feel excluded from policy-making processes. This disengagement, he notes, persists regardless of the polished appearance of the systems on paper.
The study also highlights the role of identity in shaping responses to policies. Leaders must recognize this role and tailor policies to acknowledge diverse identities to foster inclusion and prevent disengagement.
In the context of hybrid work models, the path forward is about re-centering HR on its micro foundations. Policies succeed when employees see them as meaningful, supportive, and aligned with their identity at work.
However, the federal government's stance on hybrid work suggests a different approach. The government treats location as the central determinant of performance, viewing it as policy rather than lived experience. This approach, according to Rofcanin, may lead to resistance, as employees respond to how policies align with their sense of identity, whether they feel supported by managers, and if they have a voice in decisions that affect them.
The Gallup data supports the endurance of hybrid work models across industries, attributing their success to arrangements that support both productivity and personal well-being. New data shows that around half of U.S. employees continue to work in a hybrid arrangement, splitting their time between home and office. However, the federal workforce's hybrid arrangements have plummeted from 61% to 28%.
In the federal case, ignoring micro foundations has led to resistance, with unions arguing that mandates breach collective agreements and employees perceiving the return-to-office push as a strategy to make jobs less enjoyable, leading to potential employee turnover.
Leaders should focus on emotional and psychological resources, as when employees feel trusted and supported, they bring energy and creativity to their roles, regardless of the office arrangement. Instead of measuring impact through macro metrics, organizations should assess trust, engagement, and psychological safety as micro indicators, as these conditions predict long-term retention and performance.
Leaders should treat job design as a dialogue, not a decree, by involving employees in shaping new arrangements through listening sessions, pilot programs, and transparent communication. Diversity and inclusion efforts falter when leaders overlook how different groups interpret the same system in different ways.
In conclusion, the success of HR policies and hybrid work models hinges on the micro foundations of identity, cognition, emotion, meaning, and psychological resources. By recognizing this, leaders can build systems around people, prioritizing human experience over political preference, and fostering engagement, trust, and productivity in the workplace.
