Random organizational design prevents companies from growing, new research from Bersin finds

  • Poor organizational design and lack of focus on job roles are among the top causes of recruitment, retention, and wellness issues for business leaders today.

  • Only 11% of companies have clear accountability and strategic job design in place

OAKLAND, CA., March 15, 2022 /PRNewswire/ — The Josh Bersin Company, a research and consulting firm focused on HR and workforce trends and issues, today unveiled new research showing how organizational design has a direct relationship to the ability of any business to prepare and evolve for the future. The study concludes that traditional approaches to organizational design, typically focused on roles and reporting structures, are holding businesses back and, in some cases, exacerbating current and future talent challenges.

The Josh Bersin Company (PRNewsfoto/The Josh Bersin Company)

The design of jobs and the organization is now one of the main root causes of the great resignation taking place today

The Josh Bersin Company also found that approximately 58% of companies use haphazard organizational structures or rely heavily on role-based organizational design principles. Only 11% use agile organizational design approaches, which have clear accountability for work, are continually modified based on business needs, and encourage employee growth on top of business growth.

“The big ‘aha’ of this research is that the design of jobs and organizations is now one of the main root causes of the great resignation what is happening today,” said Josh Bersin, global industry analyst and CEO of The Josh Bersin Company. “Too many companies just post ‘jobs’ without considering a redesign of roles and responsibilities to make work easier, more productive and more engaging. Traditional approaches to organization design, which typically address The good news is that our research shows that successful companies hire faster, retain more, and transform their businesses faster.

“In light of this, it is vital to have an organizational design now, as it will prove much more difficult to hire in the years to come. The fertility rate in the United States is 1.84 (replacement is 2.11) and all developed economies are going to have the same problem Organization and job design is the only solution to maintain productivity as the overall size of the global workforce decreases.

The report, The Definitive Guide to Organizational Design: The Journey to Agility, presents the seven elements and 20 dimensions that must be considered in business-oriented organizational design, as well as the 15 organizational practices that have the greatest impact on the business. Some of the key takeaways from the report include:

  • How companies operate is more important than how they are structured. Of the seven elements studied, organizational structure design had the least impact on business, while work design was the primary driver of business results. However, most companies lack work design capabilities and only one in ten organizations are currently using advanced technologies such as organizational network analysis to help understand how work is actually happening.

  • Agile organizations separate managing work from managing people, redefining the role of the manager. In today’s world of work, where business models, departments and workplaces change all the time, the hierarchical “span of control” model no longer works.

  • The employee experience should be central to all design practices, not an afterthought. Companies that have taken this into account achieve better financial results, record much higher customer satisfaction rates and are considered by employees to be great places to work, but only 12% of companies directly involve employees in the design of their the organization.

  • Responsibility is essential. In fact, identifying responsible parties and the work they do, as well as identifying rewards for achieving results, is the most impactful organizational practice.

The research report also includes a framework for business-driven organizational design, an organizational design maturity model, and steps companies can take to improve their organizational practices and achieve better financial, customer, people and innovation. Examples and case studies of companies that have applied these approaches are part of the journey to agility for companies in traditional industries, including German manufacturing giant Bosch Power Tools, Australian telecommunications company Telstra and US energy company DCP Midstream.

“Our research clearly shows that it is time for organizational design to take center stage. all aspects of organizational design, including rethinking the work itself,” said Kathi EnderesPhD, senior vice president of research.

The definitive guide to organizational design: the journey to agility is available for free download for a limited time. Click here to access.

About Josh Bersin Company
The Josh Bersin Company provides a wide range of research and consulting services to help managers and human resource professionals meet the challenges and ever-changing needs of today’s workforce. We cover all topics related to human resources, talent and training and development, including diversity, equity and inclusion; employee experience; remote and hybrid work; welfare; HR strategy and capabilities; learning and career mobility; HR technology; organizational design and development; and talent acquisition and mobility. With the Global Workforce Intelligence (GWI) project, The Josh Bersin Company extends its support to market-leading companies by helping them meet the challenges of industry convergence while remaining forward-looking.

Under the company’s umbrella is the Josh Bersin Academy, the world’s premier development academy for HR and talent professionals and a transformative agent for HR organisations. The Academy, which has had over 50,000 enrollments in the program since its launch in 2019, offers content-rich online courses, a carefully curated library of tools and resources, and a global community that helps HR professionals and talents to keep abreast of trends and necessary practices. to drive organizational success in the modern workplace.

For more information, visit www.joshbersin.com and www.bersinacademy.com or email info@bersinpartners.com.



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