People Follow Structure: How Less Hierarchy Changes the Workforce

To what extent do changes in organizational structure influence employee decisions to join — or stay at — a company? Research found that when companies de-layer their hierarchies, their workforces change: Typically, these businesses see the share of conscientious, open, and agreeable employees rise, largely due to turnover. The outcome can vary, though, based on how managers communicate the goal of flattening the organizational structure and attend to high-potential employees makes a difference.