There’s a scene from the television series Mad Men where one of the advertising copywriters, Peggy, is confronting her boss, Don, about an award for a commercial she conceived.
The scene climaxes with this iconic dialogue:
Don: “It’s your job! I give you money, you give me ideas.”
Peggy: “And you never say thank you!”
Don: “That’s what the money’s for!”
By the early 1960s standards for the show, Peggy was not only the rare woman in a traditionally male-dominated industry, she was well-paid for the era. What she wanted and needed was to ultimately feel appreciated – and by extension, happy – while at the office.
While Don’s attitude reflects what almost every manager thought 50 years ago, there are still a lot of leaders who ignore the data that says an employee who is happy is one who is more productive.
The Data Proves It
A study in 2014 from The University of Warwick found that workers who defined themselves as “happy” were 12% more productive than those (a control group of sorts) who said, “neither happy nor unhappy.” As for the ones who labeled themselves “unhappy,” they were found to be 10% less productive than the noncommittal group. That’s a 22% gap in productivity between happy and unhappy workers. A happy workforce of 400 people can do more work than an unhappy group of 500. How much money would happiness save?
Need more proof?
An older study reported by the Jackson Organization looked at the Fortune 100 Companies to Work for List between 1998 and 2005. These are the companies that employees report the most satisfaction working for. Year-to-year, these companies reported an average 14% increase of their stock price, compared to 6% for non-list companies.
I could cite dozens of other studies and reports that all reach the same bottom line: a happy employee is a greater asset to a company than an unhappy one.
Making Things Better
At a meeting I had with a group of C-level executives six months ago, I hypothesized to them that a recent decrease in productivity may be the result of an unhappy workforce. One of the execs in the room sternly said, “Our job is not to make them happy.” While this is technically true, it’s clear that creating conditions that favor fulfillment and happiness reap dividends.
Here are a few ways for employers to try keeping their employees happy:
Pay the Employees Fairly – This isn’t suggesting you give them all raises, but contrary to what they may be told, people compare salaries. Did you just bring in a new hotshot at a higher salary than someone who has been doing the same job for 5 years at less pay? This kind of information gets around and builds resentment among those who have been loyal, but underpaid.
Promote from Within – Showing employees there is a future with the company that can lead to more responsibility and better pay is a great incentive for people to do their best work. Knowing they have a good chance of being rewarded for their good work will be felt throughout the organization.
Allow Employees to Be Heard – From the CEO down through the cleaning crew, there should be a system in place that encourages and acknowledges ideas, and rewards the people who provide them if they are put into practice. If everybody is on the same page and takes some ownership of the business, you’ll find a spirit of teamwork that most companies wish they could achieve.
Acknowledge Their Outside Lives – The toughest places and toughest people to work for are those who don’t seem to recognize there are 16 hours in every day the employee isn’t at work. Recognizing that people have children, get ill, must attend certain events, etc. without negative consequences will make employees feel more valued as people, not just cogs in a giant machine.
And what happened to my clients? They allowed me to do a quick assessment to determine the engagement (happiness) level of their employees in the problematic location.
The result? Employees needed and wanted to be heard. That simple. So, we established a system that encourages and acknowledges ideas, and rewards the people who provide them if they are put into practice. Game changer!
If you find yourself in a leadership role and you’re ready to improve, I’m prepared to listen. Contact me to schedule a conversation that could change the way you’ve been leading others here: http://maricarmenpizarro.com/contact-mari-carmen/
