THE
way we’re working isn’t working. Even if you’re lucky enough to have a
job, you’re probably not very excited to get to the office in the
morning, you don’t feel much appreciated while you’re there, you find it
difficult to get your most important work accomplished, amid all the
distractions, and you don’t believe that what you’re doing makes much of
a difference anyway. By the time you get home, you’re pretty much
running on empty, and yet still answering emails until you fall asleep.
Increasingly, this experience is common not just to middle managers, but also to top executives.
Our
company, The Energy Project, works with organizations and their leaders
to improve employee engagement and more sustainable performance. A
little over a year ago, Luke Kissam, the chief executive of Albemarle, a
multibillion-dollar chemical company, sought out one of us, Tony, as a
coach to help him deal with the sense that his life was increasingly
overwhelming. “I just felt that no matter what I was doing, I was always
getting pulled somewhere else,” he explained. “It seemed like I was
always cheating someone — my company, my family, myself. I couldn’t
truly focus on anything.”
Mr.
Kissam is not alone. Srinivasan S. Pillay, a psychiatrist and an
assistant clinical professor at Harvard Medical School who studies
burnout, recently surveyed a random sample of 72 senior leaders and
found that nearly all of them reported at least some signs of burnout
and that all of them noted at least one cause of burnout at work.
More broadly, just 30 percent of employees in America feel engaged at work,
according to a 2013 report by Gallup. Around the world, across 142
countries, the proportion of employees who feel engaged at work is just
13 percent. For most of us, in short, work is a depleting, dispiriting
experience, and in some obvious ways, it’s getting worse.
Demand
for our time is increasingly exceeding our capacity — draining us of
the energy we need to bring our skill and talent fully to life.
Increased competitiveness and a leaner, post-recession work force add to
the pressures. The rise of digital technology is perhaps the biggest
influence, exposing us to an unprecedented flood of information and
requests that we feel compelled to read and respond to at all hours of
the day and night.
Curious
to understand what most influences people’s engagement and productivity
at work, we partnered with the Harvard Business Review last fall to
conduct a survey of more than 12,000 mostly white-collar employees
across a broad range of companies and industries. We also gave the
survey to employees at two of The Energy Project’s clients — one a
manufacturing company with 6,000 employees, the other a financial
services company with 2,500 employees. The results were remarkably
similar across all three populations.
Employees
are vastly more satisfied and productive, it turns out, when four of
their core needs are met: physical, through opportunities to regularly
renew and recharge at work; emotional, by feeling valued and appreciated
for their contributions; mental, when they have the opportunity to
focus in an absorbed way on their most important tasks and define when
and where they get their work done; and spiritual, by doing more of what
they do best and enjoy most, and by feeling connected to a higher
purpose at work.
THE
more effectively leaders and organizations support employees in meeting
these core needs, the more likely the employees are to experience
engagement, loyalty, job satisfaction and positive energy at work, and
the lower their perceived levels of stress. When employees have one need
met, compared with none, all of their performance variables improve.
The more needs met, the more positive the impact.
Engagement
— variously defined as “involvement, commitment, passion, enthusiasm,
focused effort and energy” — has now been widely correlated with higher
corporate performance. In a 2012 meta-analysis of 263 research studies
across 192 companies, Gallup found that companies in the top quartile
for engaged employees, compared with the bottom quartile, had 22 percent
higher profitability, 10 percent higher customer ratings, 28 percent
less theft and 48 percent fewer safety incidents.
A
2012 global work force study of 32,000 employees by the consulting
company Towers Watson found that the traditional definition of
engagement — the willingness of employees to voluntarily expend extra
effort — is no longer sufficient to fuel the highest levels of
performance. Willing, it turns out, does not guarantee able. Companies
in the Towers Watson study with high engagement scores measured in the
traditional way had an operating margin of 14 percent. By contrast,
companies with the highest number of “sustainably engaged” employees had
an operating margin of 27 percent, nearly three times those with the
lowest traditional engagement scores.
Put
simply, the way people feel at work profoundly influences how they
perform. What our study revealed is just how much impact companies can
have when they meet each of the four core needs of their employees.
Renewal:
Employees who take a break every 90 minutes report a 30 percent higher
level of focus than those who take no breaks or just one during the day.
They also report a nearly 50 percent greater capacity to think
creatively and a 46 percent higher level of health and well-being. The
more hours people work beyond 40 — and the more continuously they work —
the worse they feel, and the less engaged they become. By contrast,
feeling encouraged by one’s supervisor to take breaks increases by
nearly 100 percent people’s likelihood to stay with any given company,
and also doubles their sense of health and well-being.
Value:
Feeling cared for by one’s supervisor has a more significant impact on
people’s sense of trust and safety than any other behavior by a leader.
Employees who say they have more supportive supervisors are 1.3 times as
likely to stay with the organization and are 67 percent more engaged.
Focus:
Only 20 percent of respondents said they were able to focus on one task
at a time at work, but those who could were 50 percent more engaged.
Similarly, only one-third of respondents said they were able to
effectively prioritize their tasks, but those who did were 1.6 times
better able to focus on one thing at a time.
Purpose:
Employees who derive meaning and significance from their work were more
than three times as likely to stay with their organizations — the
highest single impact of any variable in our survey. These employees
also reported 1.7 times higher job satisfaction and they were 1.4 times
more engaged at work.
We
often ask senior leaders a simple question: If your employees feel more
energized, valued, focused and purposeful, do they perform better? Not
surprisingly, the answer is almost always “Yes.” Next we ask, “So how
much do you invest in meeting those needs?” An uncomfortable silence
typically ensues.
How to explain this odd disconnect?
The
most obvious answer is that systematically investing in employees,
beyond paying them a salary, didn’t seem necessary until recently. So
long as employees were able to meet work demands, employers were under
no pressure to address their more complex needs. Increasingly, however,
employers are recognizing that the relentless stress of increased demand
— caused in large part by digital technology — simply must be
addressed.
Still,
the forces of habit and inertia remain powerful obstacles to better
meeting employee needs. Several years ago, we did a pilot program with
150 accountants in the middle of their firm’s busy tax season.
Historically, employees work extremely long hours during these demanding
periods, and are measured and evaluated based on how many hours they
put in.
Recognizing
the value of intermittent rest, we persuaded this firm to allow one
group of accountants to work in a different way — alternating highly
focused and uninterrupted 90-minute periods of work with 10-to-15-minute
breaks in between, and a full one-hour break in the late afternoon,
when our tendency to fall into a slump is higher. Our pilot group of
employees was also permitted to leave as soon as they had accomplished a
designated amount of work.
With
higher focus, these employees ended up getting more work done in less
time, left work earlier in the evenings than the rest of their
colleagues, and reported a much less stressful overall experience during
the busy season. Their turnover rate was far lower than that of
employees in the rest of the firm. Senior leaders were aware of the
results, but the firm didn’t ultimately change any of its practices. “We
just don’t know any other way to measure them, except by their hours,”
one leader told us. Recently, we got a call from the same firm. “Could
you come back?” one of the partners asked. “Our people are still getting
burned out during tax season.”
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