Employee Happiness - Input or Outcome?

When the HR director at SAS was asked about the logic behind the vast array of benefits and services that SAS provides to its employee, he famously replied - “…there is nothing altruistic about all this. This is a for-profit business. we do all this because it all makes good business sense". SAS CEO Jim Goodnight went on to add - "I keep my employees happy and they keep my customers happy.”

So do happy people help a company make more profits? 

Research definitely shows that it does – Thomas Wright, professor at Fordham University, claims employee happiness accounts for as much as 10-15 percent of the variance in performance between different employees. 

Another research shows that at work, happy people are: 31 percent more productive, 40 percent more likely to receive a promotion (people like happy people), Less absent, with 23 percent fewer fatigue symptoms, Up to 10 percent more engaged at work, and are able to sell more – happy sales people produce 37 percent greater sales.

But what’s the happiness route?

Both Job satisfaction and engagement principles are rooted in happiness concept. So is job satisfaction the route to happiness or does happiness take the engagement way?

According to me job satisfaction and engagement take completely opposite routes to happiness.

Job satisfaction school of thought has believed that employee must be made happy. And if an organization can do so then these happy employees would be more productive. So, organizations simplify work, reduce work hours, dole out benefits etc., to make their employees happy, in anticipation that this will make them work harder. However this theory has largely not worked, for if it had then all our Indian PSU establishments would have been in Fortune 500. I have nothing against these PSUs but then we all know barring one or two none of them have really done well. Look at the pitiable state of organizations like Air India, Indian Railways, state electricity departments, waterworks and we know that despite these government institutions driven by the socialist view of the world have tried to do everything to keep their employees happy, the results have not necessarily been rosy.

On the other hand, the Engagement school of thought believes that the organization should do everything possible to maximize chances and opportunities for an employee to contribute. So if an organization provides benefits then it does not do so to make employees happy rather it does so to take away the worries from the mind of the employees and hence leave a large part of his/her mindshare for thinking about work. Companies like SAS understand and take care of their employees and their families; in turn employees get more time to take care of the company and its customers. Similarly at workplace the entire leadership, all resources, facilities and systems work towards making sure that the employee finds more avenues and interest to contribute. When an employee finds such a space, he/she can effectively contribute; it also maximizes his/her achievements and consequently the recognition & the rewards. Higher pay-offs and a sense of achievement & fulfillment lead to Happiness.

In short, while job satisfaction school of thought treats happiness as an input, engagement school of thought treats happiness as an output! Evidence from practice and research shows that the latter approach has worked much more than then the former.

Recently the IT mega city in India Bangalore has been plagued by high attritions amongst doctors. With the rapid mushrooming of private multi-specialty hospitals in the city the demand for quality doctors has multiplied many folds and has reportedly brought poaching talks in the board rooms of such organizations. But money isn’t the only reason why doctors quit. In fact a city newspaper recently quoted a senior doctor, when asked about the reasons of high attrition, stated - “There are only two reasons why doctors chose to move out. Either it is due to the administrative differences or because there is no equitable distribution of finances. Administrative differences happen when a person who is not from a medical background is involved in the decision-making process. This would mean that a doctor would have to wait for long for their equipment as that person in the administration does not understand the need for it. This would only halt his career move which is why he would choose to shift his practice.”  

In this case an uncooperative and non-supportive administration robs the doctors an opportunity to contribute; creates an environment that frustrates the professionals and forces them to leave. No amount of money or benefits is able to arrest such an outflow. ‘Satisfaction’ theory fails once again.

Contemporary research has also challenged another traditional ‘satisfaction’ anchor – the ‘work-life balance’. The problem with work-life balance is that it considers only the work hours and not whether the work is meaningful or not. Research shows that a meaningful work is of far greater value than necessarily lesser work hours. This is not to take away the concept of manageable work hours but then it is not the determinate. When an employee find meaningful work, it gives him/her far greater opportunity to contribute, succeed, achieve and be recognized & rewarded for the same. The outcome is happiness and engagement.

In fact Gallup has gone on record to state that – “Don't Pamper Employees -- Engage them! Satisfied or happy employees are not necessarily engaged. And engaged employees are the ones who work hardest, stay longest, and perform best.”

So keep your employees happy but make sure it is an outcome and not an input. Take the engagement route to happiness!

Bibliography

Kamath, V. (2014, 01 20). With hospitals boom in the city, doctors jump jobs for greener pastures. Bangalore Mirror.

Pfeldt, E. (2012, 12 27). Gallup: How Employees' Well Being Affects the Bottom Line. Forbes. Retrieved from http://www.forbes.com/sites/elainepofeldt/2012/12/27/gallup-why-leaders-cant-afford-to-ignore-employees-well-being/

Simson, N. (2014, January 21). Productivity Hacks: Happy People Are Productive People. Retrieved from Linked in: http://www.linkedin.com/today/post/article/20140121000342-1291685-productivity-hacks-happy-people-are-productive-people

Sorenson, S. (July 02, 2013). Don't Pamper Employees -- Engage Them. Gallup Business Journal. Retrieved from http://businessjournal.gallup.com/content/163316/don-pamper-employees-engage.aspx

Tandon, Y. (February 02, 2012). Why Work-Life Balance Isn't Balanced. Gallup Business Journal. Retrieved from http://businessjournal.gallup.com/content/152204/why-work-life-balance-isn-balanced.aspx

Engagement is a culture issue.

People often ask me - 'What kind of engagement activites can we organize? We were thinking of having some friday afternoon activities like tug-of-war, singing comeptition etc. etc.' My standard answer to then is 'Are you talking of entertainment or engagement?'

Often people do not seem to understand me as they may taken great pains to design that event. They are so consumed in that process that many times they miss the big-picture. Engagement is a strategy and not an event. So as not to say that such events cannot fit in the engagement-map. But to treat them as engagement per-say is huge mistake. This is why engagement remains as merely some events or activities in a company. Momentary cosmetic interventions cannot define engagement. Engagement is a culture issue. Culture is the incubator of engagement. And if the engagement strategy has not been weaved on the foundation of strong and breathing organizational culture, such initiatives would soon loose steam.

One of my student who did her internship at Rambagh Palace Hotel at Jaipur (Taj Hotels) and spent good time in studying their engagement practices, gave me first-hand account of what she 'experienced'. Tata culture of ethics and care is so neatly inter-woven in the organization that a considerable degree of engagement happens at the time of induction itself. She told me that to every employee she spoke, even though some were very busy, not a single employee felt that he/she was in the wrong place. The hotel had a fabulous 90% engagement. Being an intern she never felt bullied by her senior colleagues. On the contrary everyone greeted her with the customary 'Khambagani' which means 'hello'. No wonder not too long back the hotel was rated as the best hotel in the world.

Engagement is a way of life; it is like the blood which transports the life-giving oxygen to every part of the organization keeping it live and thriving.

Sun never sets...

Sun Microsystems, Inc. founded in 1982 at Silicon Valley sold computers, computer components, computer software, and information technology services for over 2 decades before it was acquired by Oracle Corporation for US$7.4 billion, based on an agreement signed on April 20, 2009. The following month, Sun Microsystems, Inc. was merged with Oracle USA, Inc. to become Oracle America, Inc. The company in its originality does not exist in its original form anymore but its engagement practices are still worth mentioning. One may question the feasibility of doing so. Well such practices could be still a message for many companies.

Communication seemed to be at the heart of engagement at Sun Microsystems. The entire management team right from the CEO was actively involved in communicating with the employees appraising them with the strategic direction of the firm and how they matter in this big picture -

Stupid Rules

Few days back at a busy traffic crossing at Bangalore when we were waiting for the light to turn green, a traffic warden jumped before our car and asked me to turn-off the engine. I was in the car with my wife and my five-year old kid. I politely gestured to the traffic warden in return, expressing my inability to turn-ff the car engine.However the highly animated traffic warden started gesturing vigorously. I rolled-down the window and explained him that since the AC is on I cannot switch-off the engine and since we all were dust-allergic the possibility of rolling-down the windows on a hot evening in one of the busiest junction where toxic fumes and gases emanating from hundred of vehicles around would be a bad idea. However he was not ready to listen and threatened me of dire consequences, if I did not comply. Then suddenly he took-out his blackberry and took a snap-off my car's number plate. He even suggested to me that mother-earth would not forgive me for my 'grave' sin. He finally forced me to turn-off the engine. By the time we pulled-off the junction, I and my family were quite disturbed by the traffic warden's rude and violent behavior and also thinking of what he might be up to with the snap that he had taken of my car's registration number. Worst he spoilt our memorable evening evening when we were returning from Crossword where my latest book had been listed in the best-seller category.I know some environmental enthusiasts would be jumping-off their seats by now in support of the traffic warden. But I am sorry, i would say these are 'Stupid Rules'. The idea of switching-off the car engines at traffic junction sounds so platonic but the harsh realities of our roads is that you can do that only at the risk of breathing-in ammonia and developing severe allergic infections, lung disorder and in the long-run a shortened life. Rules can never be set in isolation. They have to be set by remaining conscious of the ground realities and have to be practical; not esoteric and ideological which can never be related to.
Then few days back I read that some environment-conscious citizens in Bangalore started a campaign of not allowing the municipal corporation to cut few trees in a area for widening the road. They went and hugged the trees and all that made front-page masala for the local dailies. So this time it was the other way around the citizens were setting the rules. So many would exclaim, how sensitive, how humane. Bullshit! I am sorry for the use of words. But in all probability those who went and hugged the trees are the super-rich  enjoying all the luxuries in their house, adding more carbon-footprints then those poor labours and common man on the street who needs a better road to go to work everyday and earn bread for his/her family.
Some students reportedly went around streets of the city and asked people to stop honking to limit the sound pollution. Fantastic! how philanthropic. However if they had come to me I would tell them go fly a kite. For god's sake, honking saves lives on Indian roads. Bangalore which is the accident capital of India, accounts for 10% of the total accidents that happen in this country, there are some people who are asking people not to honk. In all probability, before sound pollution kills them, a swinging truck or a devilish bus or a erring cab would hit and kill them. And why just Bangalore, this is true of any Indian city. I am sure you all can vouch for it. Pure buffoonery...
In short, rules are only relevant if they are cognizant of the practical issues and the environment in which they are expected to be enforced. And then more stupid rules you have, more people will dissent and find a way around them or desert in frustration. Remember this is true for organizations too. When organizations set rules for their employees they should remember not to make them stupid or become oblivious of the practical ground situation.Such rules would only lead to more and more disengagement.

Early Engagement -2

More and more companies are aiming to catch talent young, most of them while they are still in their finishing schools. This on hand serves efficient execution of their business plans but implicitly they succeed in 'engaging' these young minds to the company.Nissan's student brand manager program is another  such example...

'The automobile company has invited management students from across the country to showcase their business skills, creative thinking and people handling skills.

Nissan Motor India has driven down to Bschools to promote its brands in India, especially Micra. The automobile company has invited management students from across the country to showcase their business skills, creative thinking and people handling skills as part of its student brand manager programme.

The students for the programme, who will be selected by advertising veteran Prahlad Kakkar, Harish Bijoor Consults Inc chief executive officer Harish Bijoor and Autocar India Magazine editor Hormazd Sorabjee, will be trained by Nissan’s marketing team before starting work as Nissan Student Brand Managers from July to December 2011.

“ This is the second year of the Nissan Student Brand Manager Program and we are inviting applications from 150 colleges across 15 cities in India,” said Dinesh Jain, chief executive officer ( CEO), Hover Automotive India ( HAI), which is Nissan Motor India’s exclusive partner for sales, marketing, after sales, dealer development and customer relationship in India.

“ Nissan will spend ` 1 crore on this activity,” Jain said. “ Students will get hands on experience in brand building. It will help them after they join the corporate world.

Such initiatives are common abroad. As India is growing fast, we also require a lot of such initiatives,” said Bijoor.

Each student brand manager will be given ` 30,000 as stipend and ` 20,000 as marketing budget for the six- month period by Nissan to implement their initiatives. Each student will also be given a kit that will include a digital camera, visiting cards, T- shirt and jacket.

The students, if needed, will also be given a Micra during the training period, to help popularise the brand. “ This will help them conduct the marketing activities in a professional manner,” said Jain, adding that the students will play a key role in bringing brand Nissan closer to the student community.

Nissan is inviting applications from second- year students of business schools such as K. J. Somaiya Institute of Management Studies and Research, Indian Institute of Management Ahmedabad and Kolkata, University Business School, Chandigarh, and S. P. Jain MIR, Mumbai.

“ We are targeting around 1,200 entries out of which 20 will be selected for the programme,” said Jain.'(Source: Nissan drives to B- schools for brand promotion by Nishi Rath - 09 Jun, 2011, Yahoo)

Engaging the Gen Y

Perhaps the most exciting constituents of the Indian workforce are the Gen Y. The key is to 'engage' the most digitally sophisticated generation. However engagement challenges are absolutely different when it comes to Gen Y -

The ‘Generation Y and workplace Annual Report’-2010 by Johnson Controls is a watershed research on the workplaces for the future. The report clearly states – Generation Y is, perhaps,  who are looking for a sustainable environment offering a social structure within both a
physical & virtual environment. Generation Y is the working population aged between 18 – 25 years who are techno – savvy, diverse and demanding. The report indicates:

• Workplace is important in attracting & retaining Gen Y.
• Location of a company plays an important role in choice of a workplace.
• Workspace allocation and technological provisions contribute to productivity and creativity.
• Workplaces must be flexible & adaptable supporting both formal & informal collaborative engagement & interaction.

The report clearly establishes a link between nature of workplace and employee engagement. – ‘The workplace contributes to the level of emotional engagement of individuals with their work. The working environment of the Gen Y is a place they emotionally engage with; a space where they socialize in with other co-workers and a space which supports their health and well-being.’

Mobile Tracker

'Indian employees are most eager in the world to change jobs in the next six months, a survey by global HR service provider Ma Foi Randstad said.


The 'work monitor' survey shows the extent to which employees are thinking of changing their jobs in the short-term compared with other countries in the world.


"India's mobility index is 140-- the highest in the world-- followed by Mexico, China and Turkey. This index shows that Indians are most open about shifting their jobs in the next six months," the survey said. The lowest employee mobility is seen in Luxembourg, Italy and Hungary.


"We hope the report contributes to enhance understanding of employee sentiments for organisations in India. In addition, this survey over a period of time will guide employers to direct their efforts to align workforce and raise engagement levels to optimise profitability," Ma Foi Randstad managing director K Pandiarajan said. The survey revealed that 80 per cent of the employees in India are open for a different job.


Moreover, employees in the salary bracket of Rs 5-10 lakh are the least mobile in India, while in the US the professionals in junior to mid career (USD 45,000-50,000 salary brackets) levels are the most mobile.' 'Indian workforce most mobile in world: Survey

India today represents the epi-centre of opportunities primarily beacuse of the growing markets and largely un-tapped consumer base. At the same time availability of comparitively cheaper but skilled labour acts as a force-multiplier. But as much this workforce is a potential, it is also a threat because of its enormous mobility. The key is not only to tap into this workforce but to understand them and engage them strongly with the organization. The challenge is same for all the HR leaders and managers in similar emerging markets, which have traditionally equated managing human resource to maintainence functions. Remember, Engagement is key!