How can you illuminate the power of belonging?

By EY Global

Ernst & Young Global Ltd.

7 minute read 7 Dec 2022

Show resources

  • Asia Pacific Belonging Barometer report (pdf)

The Asia-Pacific Belonging Barometer 2022 highlights a growing talent gap between employees’ needs and organizations’ cultures.

In brief

  • A sense of belonging is more important than ever, yet only 43% of employees in Asia-Pacific feel like they belong in their workplace.
  • Belonging drives engagement and retention, with employees who feel they belong being three times more likely to stay.
  • Having employees that feel a strong sense of belonging can reap substantial financial benefits for organizations – reducing costs by $100 billion.

Belonging is a fundamental part of what makes us human and, in the workplace, drives engagement and retention. In a backdrop of the global talent crunch, organizations need workers who are productive, engaged and dedicated. Yet across Asia-Pacific, 25% of workers are considering switching organizations next year. Leaders can combat that attrition by increasing feelings of belonging.

Our research provides very clear evidence on the financial benefits of belonging. Those who feel like they strongly belong are three times as likely to have a positive working experience and be more engaged, i.e. productive. They are also almost three times as likely to stay with their current employer. This uplift in engagement and retention can have a significant impact on the operational efficiency and financial outcomes of an organization.
 

Employees are looking at options

25%

of workers are considering switching organizations next year

Show resources

  • Download Belonging Barometer Asia-Pacific 2022 report

To help leaders understand the status of belonging in one of the world’s most diverse regions, EY conducted 7,595 interviews with employees of large organizations across Asia-Pacific markets: Australia, China, Hong Kong SAR, Japan, Korea, Malaysia and Singapore.

In this, the first primary research study into belonging with an Asia-Pacific audience and using local languages, leaders can see market snapshots showing nuanced differences, and what steps to take to ensure a more diverse culture that nurtures belonging for everyone.

Trust, respect and a connection to others through similar or shared interests, skills and challenges define the feeling of belonging in Asia-Pacific, and despite the diversity in societal cultures among the markets surveyed, there is more similarity than difference in how belonging was defined.

When we asked survey participants how they define “belonging” this is how they responded.

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Chapter 1

Belonging in Asia-Pacific

A high sense of belonging improves physical and mental health, psychological safety and performance.

While the “great resignation” did not unfold as originally feared across Asia-Pacific, competition for talent is still fierce, and job switching intentions present a risk for organizations. Given how important the sense of belonging is for organizations to retain productive talent, leaders should be concerned that less than half of the employees in Asia-Pacific markets surveyed experience a high level of belonging at their workplace, with Mainland China and Australia presenting the highest rates, and Japan showing the lowest rates. 

In Asia-Pacific, those who feel like they belong are three times as likely to have a positive working experience (i.e. are more engaged) and they are almost three times as likely to stay with their current employer.

At the same time, around one-quarter of employees are planning to switch jobs in the next 12 months, with Japan presenting the highest level of potential job switching (36%) and Mainland China presenting lower switching intention (11%).

The other aspect to consider is that while much recruitment focuses on hiring younger employees, those same junior staff are far more likely to feel less belonging, 34% less than senior management.  

This highlights a gap that organizations need to close by developing actions aimed at increasing feelings of belonging among more junior employees.

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Chapter 2

Connection with Diversity, Equity, Inclusion

The more diverse, the more the belonging.

The Belonging Barometer reveals that people working in what they perceived to be a diverse organization tend to feel a higher sense of belonging. “The research shows that welcoming differences improves the sense of belonging for employees. Celebrating and recognizing uniqueness, creating an inclusive culture, and improving belonging has major bottom-line benefits.” – Holly McGhee, EY Asia Pacific DE&I Leader.

Diversity is about differences – accepting people from a wide range of dimensions including demographics, working and thinking styles, experiences, and more. Equity is about recognizing that everyone has different starting points and different needs. Inclusiveness is about creating environments where everyone can feel safe about bringing their perspectives and ideas forward, and trust that they can be themselves.

The research shows that welcoming differences improves the sense of belonging for employees. Celebrating and recognizing uniqueness, creating an inclusive culture, and improving belonging has major bottom-line benefits.
Holly McGhee
Asia-Pacific DE&I Leader

While it is recognised that diverse workforces deliver organizational benefits such as increased creativity and productivity, the Belonging Barometer highlights a significant relationship between workplace diversity and employee retention through workplace belonging. Organizations that achieve a diverse workforce, including people that have different backgrounds, demographic profiles and attitudes, create a workforce of people who feel they belong and are more likely to stay.

Further, organizations that have effective DE&I strategies in place and that are seen to deliver real impact for employees achieve notably higher levels of belonging. 

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Chapter 3

Hybrid effects on belonging

Hybrid working highlights that work is increasingly something we do, rather than somewhere we go.

Traditional thinking was that a good company culture necessitated employees being in the workplace alongside team members, with many markets in Asia-Pacific having very long days in the office, and often social activities following in the evening.

While some markets had already eased this requirement, the COVID-19 pandemic rapidly shifted the needle, with every market experiencing some remote work.

The Belonging Barometer shows positive impacts of hybrid working, with employees at all levels of an organization expressing both a more positive working experience (79%) and a greater sense of belonging (56%) working in a hybrid environment rather than working full time either from the workplace or remotely.

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Chapter 4

The risk of not getting it right - exclusion

Exclusion is the biggest risk to loss of belonging.

Employees across Asia-Pacific have identified exclusion as a key element that can make them feel like they do not belong, with having ideas dismissed the most common factor followed by not being given timely feedback. “Creating an environment where employees feel like they belong is more important than ever. Insider and outsider dynamics in a team can generate feelings of exclusion. Managers should reflect on the dynamics in their own teams and consider the actions needed to create a sense of belonging for all.” – Michael Wong, EY Asia-Pacific Talent Managing Partner.

Significantly, one-third of employees from Asia-Pacific have felt excluded at their workplaces, with levels of exclusion experienced by key employee sub-groups at much higher levels. Most employees – including LGBTQIA+ and those with disabilities – recognize exclusion as a form of bullying, with 62% suggesting that they classify bullying as exclusionary behavior.

Leaders who can put measures in place to capture and mitigate these aspects can eliminate this key risk factor and create a culture that enables more belonging.

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Chapter 5

Leadership’s role in creating a culture of belonging

Six aspects to building a more inclusive culture.

Given the overwhelming evidence about the impact that belonging can have on organizational growth and performance, delivering a workplace culture that enhances the sense that its employees belong should be a priority for every leader.

“Tone from the top is essential. Leaders who can authentically discuss DE&I-related matters while role modelling inclusive behavior will be able to realize the value for many years to come.” – Eng Ping Yeo, EY Asia Pacific Tax Leader.

Yet leaders risk having blinders on when it comes to belonging, because they generally feel a stronger sense of belonging (69%) compared to middle management (54%) and staff (35%).

To overcome their own potential biases, and create and build an inclusive workplace, leaders can look to these six aspects:

1. Build a diverse, equitable and inclusive workforce

Although building a more diverse workforce takes time, effective diversity strategies and action by those in leadership can immediately and significantly raise the feeling of belonging in an organization.

2. Promote a culture of trust, respect and authenticity

Trust is built when leaders are authentic, empathetic and perceived as competent. Leaders can create the conditions for belonging by being open, vulnerable and empathetic toward others.

3. Leverage hybrid working where possible

Audit roles for feasibility, and as part of building the culture of trust, advocate for people to work more freely. Lead by example, and make sure people see leaders doing the same.

4. Implement systematic feedback, recognition and check-in initiatives

Recognize that each market has its own nuances, and map the feedback and recognition systems to match those needs. For example, where Australia and Singapore like personal, casual check-ins, other markets need more objective approaches.

5. Address exclusion and bullying to minimise risk

Design a program of systemic interventions to remove the optionality for behavior-driven activities. Demonstrate the organization’s DE&I commitment through policy, strategy and talent expectations.

6. Remove the optionality of DE&I

There is no single activity or program that can foster a sense of belonging in the workplace; it takes a whole-of-organization approach to create a culture that promotes inclusive behavior and raises awareness on the differing needs of employees and build in steps for accountability.

Summary

Belonging isn’t “soft” it is a critical component to an employee wanting to stay in an organization, and being productive while there. The opposite – exclusion – leads employees to leave or at the least “quietly quit,” leading to hundreds of millions of dollars spent replacing them. Fostering belonging requires an organizational-wide focus, with leaders demonstrating the behavior they expect. The EY Asia-Pacific Belonging Barometer 2022 sounds a warning bell to boards, CEOs and heads of people to focus on creating a more inclusive culture or potentially lose the race for talent.

About this article

By EY Global

Ernst & Young Global Ltd.