Spotify and Google utilise a flat organisational structure to keep their employees engaged. In this structure, there are fewer layers of management, encouraging direct communication and collaboration. Spotify uses ‘squads’, small cross-functional teams that work on specific projects, while Google applies a similar concept called ‘cells’. Both companies promote a culture of autonomy, allowing teams to set their own goals and decide how to achieve them.
Career progression in such organisations is not vertical but multi-directional. Employees can develop their skills in various areas, rather than just moving up a traditional hierarchy. This approach is facilitated by a strong emphasis on continuous learning and development. Spotify, for instance, offers ‘learning days’ where employees can explore new skills or areas of interest.
Both companies also understand the importance of recognising and rewarding individual contributions. Spotify has a ‘peer bonus’ system, where employees can nominate their colleagues for bonuses, while Google uses a similar ‘peer recognition’ scheme. Furthermore, they both offer a flexible work environment, understanding that work-life balance is crucial for employee engagement and productivity.
In summary, Spotify and Google’s success in employee engagement and retention can be attributed to their flat organisational structure, focus on autonomy and continuous learning, and systems for recognising individual contributions.
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