Want to improve the employee experience? Create a more conscious corporation 

According to a recent study by FCLTGlobal, corporations are more short-term oriented now than they have been in a decade. Based on a growing body of research, this is not just bad for business, it’s demoralizing for employees. We’ve found that when employees think they are working in a short-term environment – where decisions are based on short-term perspectives and goals are focused on short-term profits – they feel significantly less engaged and committed, less creative, and less confident in the future of their organization. They also feel significantly more stressed, overloaded, and unable to balance their work and life. If your organization’s primary focus is satisfying investors and increasing quarterly profits, you likely have a workforce that is exhausted, alienated, and underperforming.

In recent years, sustainability has become a priority for an increasing number of businesses around the globe. Based on research from the Governance & Accountability Institute, the percentage of Fortune 500 companies publishing sustainability reports has increased from just under 20% in 2011 to 86% in 2019. Other researchers have found that corporate sustainability is a core concern for employees and customers.  We have found that when employees believe they are working for an organization that has a positive impact on society, they are significantly more likely to feel proud of their organization, satisfied with their job, optimistic about their future, and willing to recommend their employer to colleagues and friends.

Peter Drucker once encouraged leaders to “accept the fact that we have to treat almost anybody as a volunteer.” Based on our research, this is advice worth heeding. We have found that leaders and managers display one of four different relational styles with their direct reports. Some create collaborative relationships (partnership style), while others act as caring parents (paternalistic style), bottom-line minded supervisors (transactional style), or brutal bosses (adversarial style). Of these, the partnership style creates the most positive employee experiences. When employees feel they are working for a leader or manager who wants to partner with – rather than power over – them, our research shows they feel more energized at work, intellectually invested in their job, and optimistic about the future.

In the 20th century, most reward systems and Employee Value Propositions (EVPS) were designed based almost exclusively on extrinsic motivators and financial incentives. But as a result of economic changes, cultural shifts, and technological advances, a growing number of scientists and practitioners have called for a more comprehensive approach to understanding what employees want at work. For example, in The Good Job Strategy, Zeynep Ton argues that the best jobs meet both the basic needs (e.g., pay, benefits, work schedule) and the higher order needs (e.g., growth, purpose, belonging) of employees. Our latest research shows that this makes sense. Based on data from over one million employees working in 128 organizations, we found that employees are more engaged at work when both their extrinsic and intrinsic needs are met. If you are trying to win the war for talent, it is critical to develop a holistic understanding of your workforce, considering not just their financial interests, but also their psychological needs, physical health, and emotional wellbeing. Focusing narrowly on just one element – particularly extrinsic motivators like compensation – may not be effective.

These are disruptive days. New technologies and innovations are changing the world of work, altering work processes, job responsibilities, and entire industries. Economist Klaus Schwab argues that because of technological breakthroughs across a variety of domains – including artificial intelligence, robotics, nanotechnology, and biotechnology – we are on the brink of a fourth industrial revolution that will “fundamentally alter the way we live, work, and relate to one another.” Inside organizations, these changes are already creating new jobs and eliminating others. Many business leaders are realizing that to compete in the future, they need to start reskilling their workforce now. Fortunately, the majority of employees are motivated by continuous learning. In our own research, we have found that learning, development, and career growth are critical needs for most employees. When employees feel they can reach their full potential at work, they work harder, stay longer, and perform better. When they feel stagnant, many start making plans to leave. With the dual goals of organizational evolution and employee engagement in mind, the most forward-thinking organizations are working diligently to prepare their employees for the future of work.