Keep ’Em Happy
03/05/07
If people are happy at work, the company makes more money.
You probably knew that, but it’s a fact that until now has been hard to prove. A new study by HR consulting firm Towers Perrin and survey group Gang and Gang has shown a “statistically valid” link between positive emotion at work and company performance, as measured by five-year total return to shareholders.
The Problem Is, However...
But the study also revealed that most people aren’t all that happy at work. In fact, employees feel generally negative about work, and a third of the time they feel “intensely negative.” Those negative emotions have consequences: Turnover rises and performance plummets.
What’s Behind Negative Emotion
The TP/Gang & Gang survey points to five factors behind most negative emotion at work:- Excessive workload;
- Concerns about management’s ability to lead the company forward;
- Anxiety about the future, especially security in their jobs, income, and retirement;
- Lack of challenge;
- Insufficient recognition for the contribution and effort provided.
“Without strong positive ties to work or the work experience,” says TP’s Donald Lowman, “employees have little incentive to go the distance or deliver consistently top performance. Employers must consider these findings as a wake-up call. Organizations face real risk when the economy improves and top talent begins looking for greener pastures elsewhere.”
What Employees Want
The study determined that while employers know something is wrong in the workplace, they misidentify or overestimate the root causes of negative emotion. For instance, while employers knew anxiety about the future was a factor in employee negativity, they overestimated its effect.
Rather, here are some of the factors employees say contribute to an “ideal work experience”:
- Self-worth: Employees feel confident, competent, and in control of their work and work experience.
- Results: Employees feel they are contributing to the success of the business.
- Rewards and recognition: Employees feel that their contributions are recognized—and that employers compensate them well for their efforts.
TP’s CEO, Mark Mactas, pinpoints the problem facing so many underperforming companies today: “Right now, there is an enormous gap between employees’ current and ideal work experience. People know what they need . . . to feel intensely positive about their work. But unfortunately, many are not getting it.”
The good news is that you can take constructive steps to improve the emotional atmosphere at work. According to Walter Wadsworth, author of The Agile Manager’s Guide to Leadership, the best steps to take include:
- Quit micromanaging employees. “Give people a job and let them figure out how to do it. That gives them the control they seek. When they succeed, they’ll reap as well a sense of accomplishment—and they’ll know they have contributed to overall results.”
- Recognize effort. Recognize with money and other tangible rewards, achievement awards, formal recognition events, promotions, or whatever other levers you have at hand. “Show employees the money and shower them with praise when it’s warranted,” advises Wadsworth.
- Challenge employees. Give them tough jobs, tasks that expand their skills, and assignments that demand creativity. “Do whatever it takes to banish boredom in the workplace,” says Wadsworth.
Strive to Create a Positive Work Environment
Concludes’ TP’s Lowman, “Creating a positive work environment is well within reach and is largely about reshaping the work experience into something meaningful and personally satisfying for employees.”
Succeed in doing that, believes Towers Perrin, and it will show up in a better bottom line.
Find out how to hold onto your best employees. The book Love 'Em or Lose 'Em will explain how. Begin rewarding your employees for a job well-done with an elegant InsertAward® Plaque. Those with a sweet tooth will enjoy our Glass Star Candy Jar. Our Service Award Pins allow you to recognize those who have been with the company for an extended period. And, for several recognition pieces in one package, see our Star Reward Kit.