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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/

Let Your Team Struggle In Order For Them To Grow

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In theory, most leaders know how important it is to delegate challenging tasks to employees both to help them grow and create a collaborative, empowered, productive team. But, faced with real workplace demands, it can be tough to put this into practice. Many of my clients say things like “I’m the only one who can do the job” or “If this project doesn’t go smoothly, the whole team will suffer.”

Empathy can get in the way, too. When you see an employee struggling, it’s only natural to want to step in and help. But from the other side, this can feel more like micromanagement than support. And when leaders over-function by keeping too many tasks, they allow their teams to under-function.

Here are some strategies you can use to make delegation easier.

Shift from doer to leader mindset

In my corporate job, we promoted the best doers into leaders. This came with an assumption that they would magically shift from being good at and motivated by performance excellence and rewards to excelling at and caring deeply about developing others’ potential. The mindset shift may be the hardest part of all. So, how can you facilitate this in yourself?

Notice your payoff from doing. The thrill of achievement provides a quick dopamine hit. But that’s something you need to resist to get to the greater fulfillment of having helped others improve.

Claim your leadership identity by getting clear on values. Ask yourself: What three words do I want people to use to describe my leadership style? For example: Do I want to lead with control, urgency, and expertise? Or, with patience, curiosity, and empowerment?

Be intentional about responding, not reacting. In the moments where you are triggered to step in, ask yourself:  Would that be aligned with my values and who I want to become as a leader?

Embrace the discomfort of the learning process

Many leaders have said that, after witnessing an employee falter, taking back the work felt like the most supportive thing to do. But there is power to holding space for struggle. Yes, this creates discomfort for both leader and employee because it’s a new way of working for everyone. However, as Gallup reminds us, one of the keys to engagement at work is the opportunity for stimulating challenges. And when you push through the struggle, the result is growth for all parties.

How can you embrace, rather than resist, the struggle of learning?

Name your emotions, which according to psychologist Susan David, offers clarity and resiliency and can empower you to respond in an intentional way, aligned with your values.

Normalise being uncomfortable, embrace the struggle. Neuroscientists know that these are the periods in which learning happens and perseverance is developed.

Reframe the situation. One potential reframe is: “I was allowed to struggle and that’s where I gained confidence in my skills. So I’m going to give my employee the same gift of time to solve the problem on their own.”

Distinguish between high- and low-stakes tasks

Leaders often tell me they remain stuck as doers because employees make too many high-impact mistakes that require intervention. But this usually happens when the bosses themselves hold on to all the work for far too long and are then forced to delegate at the wrong moment. The key is to instead hand off tasks when the stakes are low and missteps tolerated, or even expected.

What makes an environment low-stakes? Failure will support learning more than it would hurt reputation. Mistakes will not impact team or company success. The environment is safe for stops and do-overs. The people involved have support and compassion for less experienced colleagues on learning curves.

To know which tasks are ripe for delegation, consider ones that now feel easy or rote to you but would be good development opportunities for those on your team? Also think about work that drains your energy and doesn’t align with your skills, talents, and strengths but might excite and feel like a perfect fit for others. 

For example, if your employee’s goal is to develop better presentation skills, try a low-stakes activity like asking them to lead the next staff meeting before a high-stakes one like conducting a client meeting. Or, if they want to get better at influencing others, challenge them to get buy-in from a small team on using a new tool or work process before asking them to persuade your whole division to implement it.   

Be curious and facilitative

Early in your corporate career as a trainer, people may tell me that you are visibly nervous during sessions you are leading. You may explain to your boss that I was worried about not having answers to participants’ questions. Her response: “What if your role isn’t to have all the answers but to facilitate the expertise in the room?” This changed my perspective.

Like trainers, leaders can’t be expected to have all the answers. But they do need to have patience and curiosity and ask insightful questions to facilitate learning. For example: What has your current approach been? Can you apply past experience to this problem? What is this situation teaching you?

Finally, practice compassion and grace. This doesn’t mean tolerating poor effort or careless mistakes. Instead, it means offering understanding and accommodation in the face of someone not doing something exactly how you would do it.

You got to have the courage to delegate to colleagues and team members even if it means watching them struggle. That’s the only way that all of us — leaders and employees — grow.

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.

This image has an empty alt attribute; its file name is B_txt_01.png

Sources:

https://tanveernaseer.com/how-to-help-struggling-employees-find-their-space/
https://www.betterup.com/blog/motivating-a-team
https://www.mindtools.com/aqdolgk/building-trust-inside-your-team

Quiet Quitting Is About Bosses, Not Employees

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“Quiet quitting” is a new name for an old behaviour. The authors, who have conducted 360-degree leadership assessments for decades, have regularly asked people to rate whether their “work environment is a place where people want to go the extra mile.” Their data indicates that quiet quitting is usually less about an employee’s willingness to work harder and more creatively, and more about a manager’s ability to build a relationship with their employees where they are not counting the minutes until quitting time.

Every employee, every workday, makes a decision: Are they only willing to do the minimum work necessary to keep their job? Or are they willing to put more of their energy and effort into their work?

In the last few weeks, many of those who choose the former have self-identified as “quiet quitters.” They reject the idea that work should be a central focus of their life. They resist the expectation of giving their all or putting in extra hours. They say “no” to requests to go beyond what they think should be expected of a person in their position.

In reality, quiet quitting is a new name for an old behaviour. Organisational psychologists have been conducting 360-degree leadership assessments for decades, and they’ve regularly asked people to rate whether their “work environment is a place where people want to go the extra mile.” To better understand the current phenomenon of quiet quitting, we looked at the data to try to answer this question: What makes the difference for those who view work as a day prison and others who feel that it gives them meaning and purpose?

The data collected indicates that quiet quitting is usually less about an employee’s willingness to work harder and more creatively, and more about a manager’s ability to build a relationship with their employees where they are not counting the minutes until quitting time.

What the Data Shows

We looked at data gathered since 2020 on 2,801 managers, who were rated by 13,048 direct reports. On average, each manager was rated by five direct reports, and we compared two data points:

Employees’ ratings of their manager’s ability to “Balance getting results with a concern for others’ needs”

Employee’s ratings of the extent to which their “work environment is a place where people want to go the extra mile”

The research term we give for those willing to give extra effort is “discretionary effort.” Its effect on organizations can be profound: If you have 10 direct reports and they each give 10% additional effort, the net results of that additional effort are increased productivity.

The graph below shows the results. We found that the least effective managers have three to four times as many people who fall in the “quiet quitting” category compared to the most effective leaders. These managers had 14% of their direct reports quietly quitting, and only 20% were willing to give extra effort. But those who were rated the highest at balancing results with relationships saw 62% of their direct reports willing to give extra effort, while only 3% were quietly quitting.

Many people, at some point in their career, have worked for a manager that moved them toward quiet quitting. This comes from feeling undervalued and unappreciated. It’s possible that the managers were biased, or they engaged in behaviour that was inappropriate. Employees’ lack of motivation was a reaction to the actions of the manager.

Most mid-career employees have also worked for a leader for whom they had a strong desire to do everything possible to accomplish goals and objectives. Occasionally working late or starting early was not resented because this manager inspired them.

What to Do If You Manage a “Quiet Quitting ”Employee

Suppose you have multiple employees who you believe to be quietly quitting. In that case, an excellent question to ask yourself is: Is this a problem with my direct reports, or is this a problem with me and my leadership abilities?

If you’re confident in your leadership abilities and only one of your direct reports is unmotivated, that may not be your fault. As the above chart shows, 3% or 4% of the best managers had direct reports who were quietly quitting.

Either way, take a hard look at your approach toward getting results with your team members. When asking your direct reports for increased productivity, do you go out of your way to make sure that team members feel valued? Open and honest dialogue with colleagues about the expectations each party has of the other goes a long way.

The most important factor is trust. When we analysed data from more than 113,000 leaders to find the top behaviour that helps effective leaders balance results with their concern for team members, the number one behaviour that helped was trust. When direct reports trusted their leader, they also assumed that the manager cared about them and was concerned about their wellbeing.

Our research has linked trust to three behaviours. First, having positive relationships with all of your direct reports. This means you look forward to connecting and enjoy talking to them. Common interests bind you together, while differences are stimulating. Some team members make it easy to have a positive relationship. Others are more challenging. This is often a result of differences (age, gender, ethnicity, or political orientation). Look for and discover common ground with these team members to build mutual trust.

The second element of trust is consistency. In addition to being totally honest, leaders need to deliver on what they promise. Most leaders believe they are more consistent than others perceive them.

The third element that builds trust is expertise. Do you know your job well? Are you out of date on any aspects of your work? Do others trust your opinions and your advice? Experts can bring clarity, a path forward, and clear insight to build trust.

By building a trusting relationship with all of your direct reports, the possibility of them quietly quitting dissipates significantly. The approach leaders took to drive for results from employees in the past is not the same approach we use today. We are building safer, more inclusive, and positive workplaces, and we must continue to do better.

It’s easy to place the blame for quiet quitting on lazy or unmotivated workers, but instead, this research is telling us to look within and recognize that individuals want to give their energy, creativity, time, and enthusiasm to the organisations and leaders that deserve it.

Given our current situation knowing that your colleagues or employees are best suited for this new scenario we find ourselves in. Finding the right talent, the best fit for the job and your organisation can be a very challenging task. It is now important to find out whether your managers or your team is well-equipped of working together from various locations. It requires deep knowledge of their personalities, strengths, weaknesses, interests, work style and other characteristics. Our technology and solutions will do the work for you, helping you discover if your people are resilient during times of hardship, if they are autonomous, if they are team players, without actual human contact. Given that our platform is cloud-based, everyone can use it from home as well. Humanity finds itself at a crossroad for various reasons now, why not help people discover and develop themselves from the comfort of their own homes?

Request a free demo:

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Sources:

https://www.axios.com/2022/09/07/quiet-quitting-pandemic-labor-jobs-unions
https://www.gallup.com/workplace/398306/quiet-quitting-real.aspx
https://www.cnbc.com/2022/09/02/how-quiet-quitting-became-the-next-phase-of-the-great-resignation.html