A transcript of a speech delivered at the Liberal Democrat conference on September 2009, by Alison Smith.
Wellbeing: A real recovery from recession? Can we reshape our economy to focus less on GDP and more on improving happiness?
Happiness – or rather the lack of it – in the workplace is costing British business millions of pounds every year in lost productivity. If you’re interested in boosting GDP, tackling unhappiness in the workplace is a good place to start.
Some time ago, we found that unhappy workers did not necessarily plan on moving. This means that organisations are staffed by people who are not fulfilling their potential, are not working as productively as they could. A proportion at least of unhappy workers who wallow in apathy.
The Badenoch & Clark Happiness at Work Index has tracked happiness in the UK office workplace since its inception in early 2007.
The association between happiness and productivity is well accepted and well chronicled by many more eminent academics and psychologists than me, but our research findings reinforce this premise time and time again. From the employment study research that supports the Index, we continue to build a fairly clear picture of why our workforce is not happy, and give employers the feedback they need to address this very fundamental issue.
Happiness in the workplace is an issue that too many employers pay lip service to. When it comes to business critical measures, such as retention rates or employee productivity, happiness, in our view, – and borne out time and again in our surveys – is a central contributing factor. Our research shows that too little is being done by employers to address the issue.
Over the two and half years that we have been running this Index, levels of happiness in the British office worker have remained fairly static – albeit reaching an all-time low this summer.
What we have seen is that people are being asked to put in more hours in the office, with more than one in ten working the equivalent of an extra day a week compared to the beginning of 2008 (pre current crisis) in most cases without the necessary recognition or reward. The result? A workforce on the edge of exhaustion; dwindling company loyalty; increasing stress levels; in short, an unhappy UK office workforce.
Headlines spell out the cost of the economic crisis time and again, but how often do we see this reported in terms of the strain on the British worker? As soon as people see a way out, many employers will be left facing a hefty talent crunch when the current economic woes are consigned to the history books.
UK office workers are less happy now than when the Index began in April 2007. More than one in four (28%) office workers are unhappy in their workplace. And these, our most recent figures, mark a sharp decline in workplace happiness levels from earlier in the year, suggesting that far too little is being done by employers to address the issue. With the recruitment market starting to show signs of recovery, we are urging employers to address the issue if they are serious about holding onto their best talent.
Employers are not seeing the situation clearly: people are staying put and keeping their heads down hoping they don’t lose their job; but they will remember how they were treated during tough times and act on that in the good times. The warning signs are there already: we are seeing greater movement in the professional markets, where unbearably large workloads are forcing people to hand in their notice. But it’s not the workload per se. It’s the fact that their employers are not listening to them when they say they can’t cope. This builds increasing resentment, a lack of trust between employee and employer, leading to dis-engagement. This ultimately impacts productivity – just what any organisation doesn’t want right now – and there’s the rub. Organisations deal with the impact of poor productivity (performance management, job losses even) but seem less able to deal with the underlying causes.
Our latest results give some startling statistics around workplace stress: A worryingly high number of employees (91%) are stressed at work, with around seven in ten (71%) workers unable to raise their concerns with management. Employees’ stress levels are being affected predominately by increased workloads, general economic worries and reduced headcount in their company. Of those professionals that brought stress levels up with their managers, 7% said they were ignored and only 6% said it led to concrete measures being taken to help them manage the situation. While some stress is a normal part of work, excessive stress reduces productivity and general wellbeing. Most employers would agree that it makes business sense to avoid excessive stress levels building up in the workplace. By refusing to deal with such a crucial employee engagement issue, businesses are risking not only the health of their workers, but the quality of the work they deliver and the overall morale of their organisation. Businesses need to address the problem and provide a platform to discuss these issues openly.
This isn’t rocket science: it is common sense and good people management. In today’s business environment, with the constant focus on measurable deliverables, perhaps too many employers have forgotten that any success depends upon its workforce.
Perhaps if we spent more time getting the people piece right – the right people in the right job, making what they do worthwhile, providing challenge, yet with support, listening to each other, valuing contribution, respecting individuals, encouraging dialogue, – we would be building a more committed and motivated workforce. And that will be a workforce that delivers more financial success too.
Make no mistake about it: British workers under increased pressure. They’re not listened to. And many are thoroughly unhappy in their jobs. What this means for productivity and this country’s ability to effect a speedy return to economic stability should not be underestimated. British employers need to act now or face the consequences.
