Jobs are experiencing EXPANSION the challenges. I have seen this across organizations, in almost every industry and at various levels. As businesses become more complex, the disconnect between top and middle management grows.

I have found success in implementing a “federal vs. state” approach to labor policy. In this model, corporate (or federal) policies are outlined, and teams or departments have the flexibility to adapt to those policies based on their unique needs. These policies help empower our leaders to make decisions that support their goals while positively impacting the employee experience through autonomy and trust.

I first learned about the “federal vs. state” concept from a friend who helped organize the 2002 Salt Lake City Winter Olympics. At the time, I was a young manager in my first operations role, and my first task was to create of a structure for business operation. The biggest challenge was creating clarity about what needed to be done and who was responsible for overseeing it.

Here are some ideas on how best to bring that important balance to any workplace.

Related: A step-by-step guide to achieving organizational alignment

Creating a 'federal' standard gives overall direction and purpose to the company

Creating a clear guideline MISSION and vision for the company will provide the right direction for your initiatives at the federal level. This step is critical. Flipping this key sets the foundational elements of your mission in motion, after which everything else will fall into place.

Once your mission and vision are established, rely on them to make overarching decisions about how policies are implemented.

A recent example of this at BambooHR was managing the internal use of AI across the company. We created federal AI principles and rules about the use and ethics of AI and related technologies so employees understand the ground rules.

Our decisions around total rewards are another example – we have a rewards philosophy that provides guidance on benefits, incentives and base pay across the company.

Ultimately, defining the federal elements of your business means ensuring your mission, vision and values reflected in your corporate policies and business goals. It's also essential that everyone has visibility into those policies and knows what direction the company is taking.

Outlining your 'state' initiatives can calm potential internal tensions

With the establishment of the federal establishment of the company, we have clear parameters to become more granular and customized at the state or team level. Being prescriptive about smaller-scale decisions helps ensure that these adjustments are still consistent with the company's core principles. Clear boundaries are also reduced decision fatigue determining which elections can be made at the state level versus those that need federal approval. At BambooHR, we do this in several ways:

• After we created our federal level AI policiesteams were empowered to determine their own direction at the state level. This means that teams—and even individuals in different roles—can decide within company guidelines which AI tools to use and how to implement them.
• Our federal compensation decisions set the standard for pay. Then, at the state level, division leaders build on those guidelines and create financial incentives for team members. Bonuses and profit sharing, for example, are handled differently in our revenue organization.
• While BambooHR's company policy supports in-office, hybrid, and remote work, teams can decide which days and how often to schedule in-person meetings, and have the autonomy to support individual work accommodation requests.
• Across the business, employees up for promotion must demonstrate a commitment to and understanding of our company's mission and contribution to company goals. Then departmental leadership can identify the skills and criteria needed for their teams beyond that.

My friend from the Salt Lake Olympic Committee taught me that it is essential to understand that every job is important, both to the company and to the employee. Every job was included in that vision, right down to understanding how the parking attendant relates to the organization's mission.

When our jobs and areas of influence are clearly defined and connected to our mission, we see much less potential for tension throughout the organization. Efforts are frequent less siledalso, because people are empowered by state-level permits and understand the relative value of their work.

Related: Your employees want to be heard – Hear the details that matter

Clarifying 'federal vs. state' lines can build stronger cultures

At the end of the day, describing your company's comprehensive federal and state elements and connecting people to your mission avoids a lot of confusion about responsibilities.

It is not uncommon for employees to not understand why they have been asked to perform a specific job task. Not knowing the purpose or value of the effort they are making is frustrating for the employee, detrimental to the quality of work, and negatively affects employee experience.

It's not just front-line employees who benefit, as connecting with the mission empowers managers as well. When leaders at any level can see opportunities but are not empowered to move toward positive outcomes, they lose hope.

“I have to submit, but I'm not authorized to do anything” is a common refrain – and he it kills company cultures. Everyone at work wants to make an impact. Managers, in particular, want to show up and be great, not spend time trying to figure out who should do what.

Describing the levels of autonomy empowers managers to run their divisions in the best way possible and provides the framework for every employee to make decisions that foster creativity and boost morale.

Identifying your federal structure and empowering managers and employees to make state decisions will ultimately benefit your culture, your workplace engagement, and your business results.