Is work satisfaction an oxymoron?
For most employees, this is (unfortunately) the case: according to the Gallup Engagement Index, 85 percent feel neither engaged nor motivated at work.
In other words, almost nine out of ten Canadians spend most of their day doing things they don’t want to do, and in a place they don’t actually want to be.
This also affects employers. According to a study by the Harvard Business Review, companies with low employee engagement experience 18 percent lower productivity, 16 percent lower profitability, 37 percent lower job growth and, in the long term, a 65 percent lower share price.
Not surprisingly, according to Deloitte Insights, the vast majority (87 percent) of companies say culture and engagement is one of their biggest challenges.
If this is now a top priority for employers, why are most employees hardly engaged?
"Work is structured on the assumption that we do it only because we have to," explains psychologist Barry Schwartz in the New York Times. To create an engaged workforce, companies must foster a sustainable and enduring work culture of daily care.
The research behind job satisfaction
Consider a study by behavioral economist (and practicalpal.net's Chief Behavioral Officer) Dan Ariely, in which he sent factory workers one of three emails: the first promising workers a free pizza if they completed their job, the second promising a rare compliment from their boss, and the last promising a cash bonus.
What ultimately motivated employees the most to do their work?
If you were thinking about the cash bonus, you are wrong. The pizza and the thank you were the strongest motivators.
While financial incentives help get employees on board in the first place, a bonus does little to increase work engagement: "You love your job the same whether you earn €28,000 a year or €280,000," explained psychologist Arthur Brooks during an interview with The Atlantic.
Pizza and compliments give employees a temporary feeling of appreciation, says Dan Ariely. Fostering a sense of care, appreciation and meaning in the workplace motivates employees more than external compensation like money.
But Ariely's findings should be taken with a grain of salt - pizza and compliments don't help if you're an employee who's barely making ends meet on your salary and can barely pay your own rent. Since Corona, certain professions, such as nursing and cleaning staff, have suddenly been labeled "system-relevant" and are receiving more attention. Although we have long known that nursing staff, cashiers and many more form the indispensable basis of our system, staff continue to be underpaid and extremely overworked. Employees in these sectors are now demanding more than just applause as appreciation - namely fair pay and an end to constant overwork.
But let's assume again that companies offer adequate pay... Based on Ariely's research, should they simply invest less in employee bonuses and compensation and instead motivate their employees with pizza and thank-you notes?
Not directly. In terms of productivity, the workers in the study all returned to their baseline levels within about a week. So while these types of rewards can help employees feel appreciated and cared for in the workplace, they don't have long-term effects.
Creating a caring work culture
What does it mean to create a caring work culture ? It's about leaders genuinely caring about their employees, employees caring about each other, and everyone caring about the company's purpose, according to the Harvard Business Review. And it's about how people treat others and how they view their own work.
But every person and every company is different – there is no universal formula when it comes to satisfaction, meaning and productivity.
Here are a few ways companies can foster a caring work culture:
1. Caring starts at the top
Leaders who not only care about the people around them but also consciously show it play an important role in fostering a caring work environment.
When leaders focus on others and support their team without asking for anything in return, it encourages others to do the same. This, in turn, sets off a chain reaction of doing good for others, says psychologist Adam Grant in his book “Givers and Takers.”
Here are some effective ways that managers can do something for their team that can contribute to a pleasant work environment:
1. Do small favors for others that take no more than five minutes - something like introducing two people to each other, giving feedback, or offering your advice.
2. Dedicate some time each week to helping other people.
3. Choose one or two ways to help others that you really enjoy and are good at, rather than doing a little bit of everything.
2. Create opportunities to make a difference
In a survey sent to the practicalpal.net team, 92 percent said that the practicalpal.net Giveback program , which donates unused contributions to charity, contributes to their happiness at practicalpal.net.
And an even larger percentage - 96 percent of practicalpal.net team members - say practicalpal.net's business model, which is designed to bring out the best in others, contributes to their job satisfaction. The business model is designed to build more trust because, unlike other insurance companies, practicalpal.net doesn't profit from denying claims.
Creating a company vision, clearly communicating how exactly employees' work impacts the bigger picture, and sharing user success stories are just some of the ways companies can convey a sense of purpose.
3. Share information whenever possible
Trust is the backbone of a meaningful and reliable relationship, and drives a caring work culture. How can a company foster trust among its employees? Through radical transparency.
When leaders share behind-the-scenes company updates and plans with their team, employees feel more involved in the company and are given a sense of value.
Transparency is the number one factor that contributes to employee happiness, according to a study by Tiny Pulse, an employee survey tool. They found a 94 percent correlation between happiness at work and a transparent corporate culture. In addition, according to financial expert Henrike von Platen, transparency is an important tool in the fight against the gender pay gap. She calls for transparency when it comes to wages, saying that "money needs to become more of a topic of conversation in order to establish salary transparency and a fair wage system". For companies, this means that employees should have the opportunity to find out exactly how their respective salaries are made up, including in comparison to those of their colleagues.
Conclusion
Creating a positive, caring work culture leads to engaged team members, meaningful working relationships and increased company profits.
As long as the base salary is right, companies should de-emphasize cash bonuses and instead invest in practices that make employees feel like they play a role in the company and are truly valued. And buying pizza and beer every now and then wouldn't hurt anyone, either.