ESSENTIALS FOR LEADERS AND THOSE THEY LEAD

The theory of self-determination holds that people are motivated to grow and change when three innate psychological needs—autonomy, competence, and relatedness or connection—are fulfilled. Applying this concept in the workplace may be the next frontier for companies seeking to retain talent. Organizations have run employee physical-fitness programs for decades and, in recent years, have begun to pay serious attention to mental-health issues. The stresses of COVID-19—such as workers’ feelings of isolation and burnout—have given rise to a slew of employer-sponsored mental-health programs, as well as to benefits such as flexible work arrangements. But as people continue to leave the workplace in record numbers, leaders may need to improve workers’ job satisfaction by focusing on their psychological well-being. Here are some ideas and strategies to think about.

AN IDEA

Aim to satisfy all workers’ psychological needs

That really isn’t as difficult as it sounds. Most people, regardless of their income level or occupation, rate having an “interesting” job at least as important as having a high income. But organizations tend to cater more to the psychological needs of higher earners, who are likely to be managers and professionals. Meeting the psychological needs of employees in lower-paying, routine, or repetitive jobs such as clerical work or machine operation could enhance their job satisfaction, productivity, and loyalty to the organization. This may not work in all cases: for example, it could be challenging to redesign a machine operator’s job to make production line tasks less repetitive. But simple steps such as recognizing mastery of a skill or granting frontline workers discretion to make appropriate decisions can go a long way toward making jobs more psychologically satisfying for lower earners.

A BIG NUMBER

40%

That’s the percentage of American workers who say they are in ‘good’ jobs, as defined by their satisfaction with the job characteristics they value the most. These include not only good wages and benefits but also factors unrelated to pay, such as enjoyment of their day-to-day work, having a sense of purpose at work, and having the power to change things that don’t satisfy them. An attractive pay package does get people in the door. Once they are in, though, leaders will need to provide opportunities for advancement and skill development, as well as restructure jobs wherever possible to avoid employee boredom and job dissatisfaction.

A QUOTE

“Positive psychological well-being is an indicator of psychological functioning that goes beyond the mere absence of disease.”

That’s from psychology professor Julia Boehm, whose research examines the correlation between positive feelings and improved cardiovascular health. Even if people don’t exhibit symptoms of depression, stress, or anxiety in the workplace, they may not be functioning optimally: it’s essential for leaders to proactively enable employees to thrive. The American Psychological Association (APA) suggests several tactics that go beyond minimum mental-health offerings. For example, instill a sense of belonging for employees of all backgrounds, institute unconscious bias training, and make sure that workers take paid time off to recover from stress. According to the APA, “Encouraging employees to carve out time for their well-being not only protects their mental health but can also improve job performance.”

A SPOTLIGHT INTERVIEW

Whether you approach it through mindfulness, meditation, or building a sense of community, psychological well-being has become critical to succeeding in the workplace. In this interview with McKinsey, former Medtronic CEO and Harvard Business School professor Bill George shares his views on how to create, protect, and expand well-being within our teams and in our lives. “As a leader, you want to give encouragement to the people you work with to bring their ideas forth, to be real people, to be authentic and to be mindful and to have their own practices and give them the opportunity to do that,” he says. Take the time to engage with people authentically and with humanity, George advises. “Make everyone at your organization feel like, ‘This is my home. This is where I want to be, and you respect me for who I am.’”

PICK A NUMBER

Does a big paycheck guarantee happiness? Scientists have long debated this question—and the jury’s still out. A well-known study conducted in 2010 found that happiness leveled off once household income topped $75,000 a year. More recent research has upped that number to $95,000, although that’s for overall “life satisfaction”; the price of day-to-day well-being comes in at $60,000 to $75,000. And it is possible to make too much money: happiness levels decline once you earn more than $105,000. To make things more confusing, new research from 2021 suggests that the more money people make, the happier they become. For leaders trying to make sense of it all, the focus should be on developing nonmonetary rewards that motivate workers to look beyond a paycheck.

Lead by supporting well-being.

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