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Positive Work Culture Can Be More Productive: Here’s How

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Too many companies bet on having a cut-throat, high-pressure, take-no-prisoners culture to drive their financial success.

But a large and growing body of research on positive organisational psychology demonstrates that not only is a cut-throat environment harmful to productivity over time, but that a positive environment will lead to dramatic benefits for employers, employees, and the bottom line.

Although there’s an assumption that stress and pressure push employees to perform more, better, and faster, what cutthroat organisations fail to recognise is the hidden costs incurred.

First, health care expenditures at high-pressure companies are nearly 50% greater than at other organisations. The American Psychological Association estimates that more than $500 billion is siphoned off from the U.S. economy because of workplace stress, and 550 million workdays are lost each year due to stress on the job. Sixty percent to 80% of workplace accidents are attributed to stress, and it’s estimated that more than 80% of doctor visits are due to stress. Workplace stress has been linked to health problems ranging from metabolic syndrome to cardiovascular disease and mortality.

The stress of belonging to hierarchies itself is linked to disease and death. One study showed that, the lower someone’s rank in a hierarchy, the higher their chances of cardiovascular disease and death from heart attacks. In a large-scale study of over 3,000 employees conducted by Anna Nyberg at the Karolinska Institute, results showed a strong link between leadership behaviour and heart disease in employees. Stress-producing bosses are literally bad for the heart.

Second is the cost of disengagement. While a cut-throat environment and a culture of fear can ensure engagement (and sometimes even excitement) for some time, research suggests that the inevitable stress it creates will likely lead to disengagement over the long term. Engagement in work — which is associated with feeling valued, secure, supported, and respected — is generally negatively associated with a high-stress, cut-throat culture.

And disengagement is costly. In studies by the Queens School of Business and by the Gallup Organisation, disengaged workers had 37% higher absenteeism, 49% more accidents, and 60% more errors and defects. In organisations with low employee engagement scores, they experienced 18% lower productivity, 16% lower profitability, 37% lower job growth, and 65% lower share price over time. Importantly, businesses with highly engaged employees enjoyed 100% more job applications.

Lack of loyalty is a third cost. Research shows that workplace stress leads to an increase of almost 50% in voluntary turnover. People go on the job market, decline promotions, or resign. And the turnover costs associated with recruiting, training, lowered productivity, lost expertise, and so forth, are significant. The Center for American Progress estimates that replacing a single employee costs approximately 20% of that employee’s salary.

For these reasons, many companies have established a wide variety of perks from working from home to office gyms. However, these companies still fail to take into account the research. A Gallup poll showed that, even when workplaces offered benefits such as flextime and work-from-home opportunities, engagement predicted wellbeing above and beyond anything else. Employees prefer workplace wellbeing to material benefits.

A POSITIVE CULTURE fosters Wellbeing

Creating a positive and healthy culture for your team rests on a few major principles. Our own research (see here and here) on the qualities of a positive workplace culture boils down to six essential characteristics:

  • Caring for, being interested in, and maintaining responsibility for colleagues as friends.
  • Providing support for one another, including offering kindness and compassion when others are struggling.
  • Avoiding blame and forgive mistakes.
  • Inspiring one another at work.
  • Emphasizing the meaningfulness of the work.
  • Treating one another with respect, gratitude, trust, and integrity.

As a boss, how can you foster these principles? The research points to four steps to try:

1. Foster social connections

A large number of empirical studies confirm that positive social connections at work produce highly desirable results. For example, people get sick less often, recover twice as fast from surgery, experience less depression, learn faster and remember longer, tolerate pain and discomfort better, display more mental acuity, and perform better on the job. Conversely, research by Sarah Pressman at the University of California, Irvine, found that the probability of dying early is 20% higher for obese people, 30% higher for excessive drinkers, 50% higher for smokers, but a whopping 70% higher for people with poor social relationships. Toxic, stress-filled workplaces affect social relationships and, consequently, life expectancy.

2. Show empathy

As a boss, you have a huge impact on how your employees feel. A telling brain-imaging study found that, when employees recalled a boss that had been unkind or un-empathic, they showed increased activation in areas of the brain associated with avoidance and negative emotion while the opposite was true when they recalled an empathic boss. Moreover, Jane Dutton and her colleagues in the CompassionLab at the University of Michigan suggest that leaders who demonstrate compassion toward employees foster individual and collective resilience in challenging times.

3. Go out of your way to help

Ever had a manager or mentor who took a lot of trouble to help you when he or she did not have to? Chances are you have remained loyal to that person to this day.  Jonathan Haidt at New York University’s Stern School of Business shows in his research that when leaders are not just fair but self-sacrificing, their employees are actually moved and inspired to become more loyal and committed themselves. As a consequence, they are more likely to go out of their way to be helpful and friendly to other employees, thus creating a self-reinforcing cycle. Daan Van Knippenberg of Rotterdam School of Management shows that employees of self-sacrificing leaders are more cooperative because they trust their leaders more. They are also more productive and see their leaders as more effective and charismatic.

4. Encourage people to talk to you

Especially about their problems. Not surprisingly, trusting that the leader has your best interests at heart improves employee performance. Employees feel safe rather than fearful and, as research by Amy Edmondson of Harvard demonstrates in her work on psychological safety, a culture of safety i.e. in which leaders are inclusive, humble, and encourage their staff to speak up or ask for help, leads to better learning and performance outcomes. Rather than creating a culture of fear of negative consequences, feeling safe in the workplace helps encourage the spirit of experimentation so critical for innovation. Kamal Birdi of Sheffield University has shown that empowerment, when coupled with good training and teamwork, leads to superior performance outcomes whereas a range of efficient manufacturing and operations practices do not.

When you know a leader is committed to operating from a set of values based on interpersonal kindness, he or she sets the tone for the entire organisation. In Give and Take, Wharton professor Adam Grant demonstrates that leader kindness and generosity are strong predictors of team and organisational effectiveness. Whereas harsh work climates are linked to poorer employee health, the opposite is true of positive work climates where employees tend to have lower heart rates and blood pressure as well as a stronger immune systems. A positive work climate also leads to a positive workplace culture which, again, boosts commitment, engagement, and performance. Happier employees make for not only a more congenial workplace but for improved customer service. As a consequence, a happy and caring culture at work not only improves employee well-being and productivity but also improved client health outcomes and satisfaction.

In sum, a positive workplace is more successful over time because it increases positive emotions and well-being. This, in turn, improves people’s relationships with each other and amplifies their abilities and their creativity. It buffers against negative experiences such as stress, thus improving employees’ ability to bounce back from challenges and difficulties while bolstering their health. And, it attracts employees, making them more loyal to the leader and to the organisation as well as bringing out their best strengths. When organisations develop positive, virtuous cultures they achieve significantly higher levels of organisational effectiveness — including financial performance, customer satisfaction, productivity, and employee engagement.

CURIOUS ABOUT THE IMPACT OF OUR UNBIASED HR SOLUTIONS?

Take the first step towards transforming your remote work culture by requesting a free demo assessment from Great People Inside.

Our team of experts will guide you through the assessment process, showcasing the effectiveness and value of our tailored solutions for your organization.

During the demo, you will have the opportunity to explore the comprehensive features and functionalities of our psychometric assessments, experiencing firsthand how they can empower your HR strategies and drive positive outcomes. From personality assessments to cognitive abilities and team dynamics evaluations, our assessments provide valuable insights to enhance talent management and foster inclusive remote work environments.

Don’t miss out on this opportunity to test the power of unbiased HR solutions. Request your free demo assessment from Great People Inside today and embark on a journey of fair and effective talent management in the remote work era.

Together, we can unlock the true potential of your remote teams and achieve remarkable success.Request a Free Demo Assessment.

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Sources:

https://www.forbes.com/sites/williamcraig/2017/07/25/3-reasons-why-positive-work-cultures-are-more-productive/
https://www.lollydaskal.com/leadership/heres-the-proof-that-positive-work-cultures-are-more-productive/
https://www.linkedin.com/pulse/positive-work-cultures-more-productive-scott-maurer/

6 Tips for Creating a Balanced and Engaging Work Culture in 2023

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In the past, people believed that the only prerequisite to succeed in business was a great idea. While this is a prerequisite, people noticed that some businesses with great ideas last longer than others. It didn’t take them long to figure out the deciding factor was the work culture. 

With that in mind, here are the top six tips for creating a balanced and engaging work culture that will last in 2023. 

1. Become better at solving scheduling problems

The majority of workplace issues arise from scheduling problems. This is what makes people stressed out and causes conflicts in the workplace. So, by creating a balanced and engaging work culture, you have a better chance at creating a balanced and engaging work culture.

First, the easy way out. You can handle most scheduling problems and solutions via employee management software. So, getting one should be a top priority. This level of automation and coordination is hard to achieve manually. 

Still, even outside of this, there are many different areas that you should improve in so that you can create more efficient schedules. 

First, you need to understand the problem, and these problems can come in many shapes and forms:

  • Optimizing employee shifts
  • Meeting room allocation
  • Project timelines

These are just some of the issues that you’ll be facing.

Then, you need to understand that there are many constraints and that the schedule is not completely arbitrary. There are legal regulations. This may not be legal even if an employee agrees to do a 20-hour shift. 

Then, there are employee preferences and even resource availability. For instance, if you have operating space for just ten employees, having all the employees from both shifts appear simultaneously will not increase productivity. It may even decrease it.

Most important of all is the data. By getting enough information on the efficiency of your scheduling (overlapping, missed deadlines, etc.) and employee feedback, you’ll understand the problem much better.

2. Develop a better understanding of staff management

Staff management is an organizational skill that requires a lot of intelligence, multi-tasking, and empathy. Now, even though this description, it’s implied that this field requires a lot of talent, at the same time, it’s a skill, which means that you have a lot to improve.

Once again, ideally, you wouldn’t do this manually but, instead, use appropriate software for staff management. This will make your actions more accurate and proficient at core management tasks.

Other than this, you need to be better at communication. In The Art of War, Sun Tzu states that if the order is unclear, it’s the commander’s fault when they’re not executed. So, you must become better at setting clear expectations. 

Another thing you need to do is learn how to listen actively. Regarding feedback, people want to know that you’ve heard the point they were trying to make, not just nod silently while they’re speaking. You need to provide feedback while getting feedback, which is not nearly as intuitive for many people. 

Conflict resolution is one of the most important tasks of any manager. You’ll often be summoned as an arbitrator in a conflict you know little about. At this point, you must offer a compromise and remember that you can’t take sides even if one party is 100% at fault. You need to be fair and just but also conciliatory. Preserving the unity of the team is your high priority.

Your work culture is a great idea that needs to be enforced. You can achieve this through good management. 

3. Allow flexible work arrangements

You must allow people to work independently and under their conditions. This is incredibly important for many reasons. First, it can help people achieve a much better work-life balance. Second, it may drive productivity up. Finally, it will make you more appealing as an employer and drastically boost your talent attraction rates.

Just remember that setting this up isn’t a small thing. First, you need to make a choice:

  • You can set up a deadlines-based system where you put people on performance pay.
  • You can monitor their work via employee monitoring software like HubStaff. 

Each of these two has its advantages and disadvantages.

Second, with a flexible working model, you’ll likely allow people to use their devices from home. This means you must introduce a BYOD policy to ensure a higher level of cybersecurity for your entire enterprise. 

You also need to ensure that you have a positive hybrid work culture. Believe it or not, even a hybrid workplace can become toxic if you’re not careful enough. While remoteness changes workplace dynamics, this change won’t always be for the better. It also won’t eliminate some of the worst aspects of the workplace. 

By giving people a choice to work in a remote or hybrid setting, you’re not forcing them into this business model. You’re just giving them more options. This is always positive and may even help increase their sense of ownership over the workplace. 

4. Put more emphasis on recognition and rewards

One of the first things you need to do to create a better work culture is to base your organization on the appreciation and recognition of your staff. Your organization is made of people putting their work and effort into reaching your goals and objectives. Your organization is not your vision, mission, or brand – it’s the people.

Your employees must know their work is appreciated to give it their best. So, you need to learn how to do this the right way. Generic praises are not efficient enough since people can easily read the intention (or the lack thereof). So, you might even want to consider getting an employee engagement platform. This way, you’ll always have all the insight you need to guide these conversations to their successful outcome.

Next, we need to discuss the rewards. Sure, your employees will love it if everything they do right could result in a pay raise. They would also prefer to get promoted at least twice per month. The problem is that this would be utterly unsustainable from the perspective of your finances and your organization’s structure.

Instead, you must learn how to give proper micro-rewards and create this promotion/pay-raise scheme so your staff never feels underappreciated.

You also want to think about the concepts of autonomy and trust. If you micro-manage everything and insist that your employees seek your confirmation for every decision, you’re not just slowing down your process but also ruining your relationship. Give them more autonomy!

5. Provide a platform for growth and development

Many managers see talent turnover as a negative thing and refuse to acknowledge it for what it really is – an inescapable rule of the business world. Your employees, even the best ones (especially the best ones), will probably, eventually leave. Even those you promote and reward. Even those you consider friends.

You can, however, affect:

  • How long they stay
  • How hard they try while they’re in your employ
  • How well they talk about you to their future coworkers

These three things are monumental, so you must ensure they’re happy in your employ.

Now, it’s only normal that people only look for themselves and your employees work for you for one of few things. They want a decent salary and great work experience to further their career.

You’ll be seen as an ideal employer if you allow them to grow. You need enough room for them to advance and a prospect for their advancement. 

You must also provide opportunities for lateral movement within your organization, a mentorship program, and many training opportunities. Generally speaking, even some of the best books about success and affluence, like Rich Dad, Poor Dad, by Robert Kiyosaki, speak about experience and skills as more valuable than pay. Some of your most ambitious employees will feel the same. 

6. Introduce wellness programs and social activities

To show your employees that you care, you must go beyond activities that generate profit. Buying your employee a new laptop is a nice gesture, but it’s an activity that indirectly boosts their productivity, which you directly benefit from.

At the same time, by starting a wellness program or creating social activity opportunities, you’ll show that you care about more than just productivity. 

You can introduce daily exercise (or deskercise), introduce healthier options in your work cafeteria, or introduce a mandatory ten-minute meditation break.

This will result in stress relief, morale boost, increased creativity, and more.

You can also combine social activities with employee appreciation (which we’ve discussed earlier) by celebrating milestones. 

The only way for your staff to stay competitive in 2023 is in a balanced ad engaging work culture 

Your employees are the only ones who can decide how hard they’ll try and how long they’ll stay. With an engaging work culture, they’ll feel the intrinsic motivation to do more. A balanced workplace will protect them from burnout and make them feel more pleasant overall. In the end, everyone wins.  

By Srdjan Gombar

Veteran content writer, published author, and amateur boxer. Srdjan is a Bachelor of Arts in English Language & Literature and is passionate about technology, pop culture, and self-improvement. His free time he spends reading, watching movies, and playing Super Mario Bros. with his son.