This is what makes employees happy at work | The Way We Work, a TED series

Summary

The script explores the importance of employee happiness, revealing that 40% of the global workforce is unhappy at work. It emphasizes that trust, respect, and fairness are key to creating a happy workplace, with examples from Four Seasons and Salesforce. Additionally, it stresses the importance of genuine listening and the impact of leadership behavior on the work experience.

Takeaways

• 🌟 About 40% of the three billion workers worldwide report being happy at work, indicating a significant portion of the workforce is dissatisfied.
• 💰 Organizations with happy employees experience three times the revenue growth compared to those with unhappy employees, highlighting the financial benefits of a content workforce.
• 📈 Happy employees also contribute to better stock market performance, outperforming by a factor of three, demonstrating the impact of employee satisfaction on business success.
• 🔄 Organizations with many happy employees have half the employee turnover rate, suggesting that job satisfaction can significantly reduce staff churn.
• 💸 Enhancing employee happiness does not necessarily require additional financial investment; it's more about how employees are treated by their leaders and colleagues.
• 🤝 Trust and respect are crucial in creating a happy workplace, and leaders should ensure their actions align with their words to foster genuine trust.
• 🏨 The Four Seasons is an example of an organization that empowers employees by trusting them to make decisions in servicing customers, which can boost employee morale and service quality.
• 🏦 Fairness in treatment is essential for maintaining trust in an organization, as perceived unfairness can rapidly erode employee confidence.
• 🌐 Salesforce is highlighted as an organization that addressed pay disparities between men and women, investing in fairness to maintain employee trust and satisfaction.
• 👂 Listening is more than just hearing; it involves being humble, seeking the best ideas, and genuinely considering employee input in decision-making processes.
• 🌱 Change should be driven by a strong belief or purpose, not merely for the sake of change. Employees are more likely to embrace change when it aligns with their values and the organization's mission.

Q & A

What percentage of the world's working population is estimated to be unhappy at work?

Approximately 40 percent of the three billion working people in the world, which translates to about 1.8 billion or nearly two billion people, are not happy at work.

How does employee happiness impact organizational revenue growth?

Organizations with a lot of happy employees have three times the revenue growth compared to those with less happy employees.

What is the relationship between employee happiness and stock market performance?

Organizations with happy employees outperform the stock market by a factor of three.

How does employee turnover compare in organizations with happy employees versus those with unhappy employees?

Employee turnover is half in organizations with a lot of happy employees compared to those with many unhappy employees.

What is the key to making employees happy without spending more money?

The key is not about providing perks like ping-pong tables or massages, but rather how employees are treated by their leaders and colleagues.

What are the two essential elements found in organizations where employees are happy?

Trust and respect are the two essential elements present in organizations where employees are happy.

Why might an employee feel untrusted if 15 people have to approve a laptop purchase?

The excessive approval process for a relatively simple purchase can make the employee feel that their judgment is not trusted, despite leaders claiming to trust and empower them.

What is an example of an organization that demonstrates high trust in its employees?

Four Seasons is an example of an organization that demonstrates high trust in its employees by allowing them to make decisions on servicing customers as they see fit.

What is the primary factor that erodes trust in an organization?

The primary factor that erodes trust in an organization is when employees feel they are being treated unfairly.

How did Salesforce address the issue of pay inequality between men and women?

Salesforce calculated the difference in pay between men and women in the same job roles and invested three million dollars to balance things out, demonstrating a commitment to fairness.

What is the true essence of listening according to the script?

The true essence of listening is being humble and always searching for the best idea possible, rather than just repeating what the person says or maintaining eye contact.

Why is it important for employees to feel that their ideas are considered in decision-making?

It is important because employees want to know that their contributions matter and could potentially influence decisions, which can lead to a sense of value and inclusion.

What motivates people to change in a meaningful way according to the script?

People are motivated to change in a meaningful way when there is a strong belief or purpose that they are willing to risk almost everything for, rather than just trying to be a better person.

Outlines

00:00

😀 Happiness at Work and Its Impact

This paragraph discusses the importance of employee happiness in the workplace. It highlights that approximately 40% of the three billion workers worldwide are happy at work, which implies that nearly two billion are not. The impact of this on both individuals and organizations is significant, as happy employees contribute to three times the revenue growth and have half the turnover rate compared to unhappy employees. The speaker emphasizes that increasing employee happiness does not necessarily require additional financial investment but rather focuses on how employees are treated by their leaders and colleagues. The paragraph introduces three ideas to create a happy workforce: trust, respect, and fair treatment.

Keywords

💡Happiness at Work

Happiness at work refers to the emotional state of contentment and satisfaction that employees experience in their professional environment. In the video, it is highlighted that about 40 percent of the three billion working people globally report being happy at work, which implies a significant number are not. This statistic is crucial as it sets the stage for discussing the importance of employee happiness and its impact on organizational success.

💡Employee Turnover

Employee turnover is the rate at which employees leave a company and are replaced by new employees. The script mentions that organizations with happy employees have half the employee turnover rate compared to those with unhappy employees. This indicates that a positive work environment can lead to greater employee retention, which is beneficial for both the employees and the organization.

💡Revenue Growth

Revenue growth is the increase in the income generated by a business over a specific period. The video script points out that organizations with many happy employees have three times the revenue growth compared to those with fewer happy employees. This underscores the financial benefits of fostering a happy workforce.

💡Trust

Trust in the context of the video refers to the confidence that leaders have in their employees' abilities and the autonomy they grant them. The script uses the example of the Four Seasons, where employees are trusted to make decisions in servicing customers, which enhances their sense of empowerment and contributes to a positive work culture.

💡Respect

Respect in the workplace is the acknowledgment and appreciation of the value and dignity of every employee. It is mentioned alongside trust as a key factor in creating a happy work environment. Respect is shown when leaders and colleagues treat each other with consideration and value each other's contributions.

💡Fairness

Fairness in an organizational context is the equitable treatment of all employees, regardless of their rank, tenure, age, experience, or job category. The script highlights Salesforce as an example of a company that addressed pay disparities between men and women, demonstrating a commitment to fairness and trust-building within the organization.

💡Listening

Listening in the video is portrayed as an active and empathetic engagement with employees, where leaders genuinely seek to understand their ideas and concerns. It is contrasted with passive behaviors like staring or merely repeating what is said. The script emphasizes that employees value being heard and having their input considered in decision-making processes.

💡Employee Empowerment

Employee empowerment is the process of giving employees the authority and responsibility to make decisions that impact their work. The script criticizes the contradiction between leaders claiming to empower employees while requiring excessive approval processes, suggesting that true empowerment involves trusting employees to make decisions without excessive oversight.

💡Organizational Culture

Organizational culture refers to the shared values, beliefs, and practices that characterize a workplace. The video discusses how the way leaders and colleagues treat each other defines the work experience for everyone. A positive organizational culture, as exemplified by the Four Seasons and Salesforce, can lead to higher employee satisfaction and better business outcomes.

💡Perks

Perks in the context of the video are the additional benefits or privileges offered to employees, such as ping-pong tables, massages, or pet walking. The script argues that these perks are not what make employees happy; instead, it is how they are treated by their leaders and colleagues that truly matters.

💡Change

Change in the video is presented as a necessary process for personal and organizational growth. It emphasizes that change should be driven by a strong belief or purpose, rather than merely trying to be a better person. The script suggests that employees should consider whether their workplace aligns with their values and is a place where they are willing to make significant changes.

Highlights

Workers all want the same things in terms of happiness at work.

Approximately 40 percent of the three billion working people in the world are happy at work.

Organizations with many happy employees have three times the revenue growth compared to those with unhappy employees.

Happy employees lead to organizations outperforming the stock market by a factor of three.

Employee turnover is half in organizations with many happy employees compared to those with unhappy employees.

Creating happy employees does not require spending more money.

Employee happiness is not about perks like ping-pong tables or massages.

Employee happiness is about how they are treated by their leaders and coworkers.

Trust and respect are present in organizations where employees are happy.

Leaders should trust and empower employees, but excessive approval processes can undermine this trust.

Four Seasons is an example of an organization that trusts its employees to make decisions in servicing customers.

Fairness is crucial in maintaining trust in an organization.

Salesforce is an example of an organization that addressed pay disparities to ensure fairness.

Listening is not just about active listening and eye contact; it's about being humble and seeking the best ideas.

Employees want to feel that their ideas are considered and could influence decisions.

Changing behavior and treatment of others is essential for defining a positive work experience.

Change should be driven by a strong belief or purpose, not just a desire to be a better person.

If change is not driven by a deep belief, it might be better to find a different place to work.

Transcripts

Transcriber: Ivana Korom Reviewer: Camille Martínez

We survey CEOs, police officers, truck drivers, cooks, engineers.

If people are working, we've surveyed them.

And what we know, in terms of their happiness:

workers all want the same things.

[The Way We Work]

There's three billion working people in the world.

And about 40 percent of them would say they're happy at work.

That means about 1.8 billion, or almost two billion people,

are not happy at work.

What does that do,

both to those people and the organizations that they work in?

Well, let's talk about money.

Organizations that have a lot of happy employees

have three times the revenue growth,

compared to organizations where that's not true.

They outperform the stock market by a factor of three.

And if you look at employee turnover,

it's half that of organizations that have a lot of unhappy employees.

The miracle thing is,

you don't have to spend more money to make this happen.

It's not about ping-pong tables and massages and pet walking.

It's not about the perks.

It's all about how they're treated by their leaders

and by the people that they work with.

So I'd like to share a few ideas that create happy employees.

Idea number one:

in organizations where employees are happy,

what you find is two things are present:

trust and respect.

Leaders often say,

"We trust our employees.

We empower our employees."

And then when an employee needs a laptop --

and this is a true example --

15 people have to approve that laptop.

So for the employee, all the words are right,

but 15 levels of approval for a $1,500 laptop?

You've actually spent more money than the laptop, on the approval.

And the employee feels maybe they're really not trusted.

So what can an organization do to have a high level of trust?

The first organization that comes to mind is Four Seasons.

They have magnificent properties all around the world.

And their employees are told,

"Do whatever you think is right when servicing the customer."

To hand that trust to your employees to do whatever they think is right

makes the employees feel great.

And this is why they're known for delivering some of the best service

in the world.

Idea number two: fairness.

The thing that erodes trust in an organization

faster than anything else

is when employees feel that they're being treated unfairly.

Employees want to be treated the same,

regardless of their rank or their tenure or their age

or their experience or their job category,

compared to anyone else.

When I think about great organizations who get fairness right,

the first organization that comes to mind is Salesforce.

They found that men and women working in the same job

with the same level of proficiency

were making different amounts of money.

So immediately, they calculated the difference,

and they invested three million dollars to try and balance things out.

Idea number three is listening.

So, to be a listener who connects with all types of people,

we have to unlearn a few things.

We've all been taught about active listening and eye contact --

an intense stare

and a compassionate look.

That's not listening.

Repeating what the person says -- that's not listening.

Being humble

and always hunting and searching for the best idea possible --

that's what listening is.

And employees can feel whether you're doing that or not.

They want to know, when they talk to you and share an idea,

did you consider it when you made a decision?

The one thing that everybody appreciates and wants when they're speaking

is to know that what they say matters so much

you might actually change your mind.

Otherwise, what's the point of the conversation?

We all know the things we need to change,

the things that we need to do differently.

The way you behave, the way you treat others,

the way you respond, the way you support,

defines the work experience for everyone around you.

Changing to be a better person --

the world is littered with those failures.

But changing because there's something you believe in,

some purpose that you have,

where you're willing to risk almost everything

because it's so important to you --

that's the reason to change.

If it's not, you should probably find a different place to work.