The 2023 State of the Global Workplace Report by Gallup draws attention to the urgent concern of low employee engagement rates costing the global economy a staggering $8.8 trillion – a hefty 9% of the global GDP. This issue isn’t insignificant, considering that only 23% of employees worldwide admit to thriving at work, revealing the dire state of low engagement. Economists have picked up on the critical link between well-being and the economy. Well-known economist Rebecca Harding offers employers some hard facts about achieving their business objectives. Employers, despite feeling an unspoken expectation to attend to employee wellbeing, indeed have that responsibility. If this duty isn’t motivation enough, the impact on the bottom line ought to be. As Harding aptly puts it, “Productivity, well-being, and innovation are closely intertwined.”
Understanding Workplace Well-being
For Harding, workplace well-being signifies a space where employees don’t feel compelled to question themselves in relation to their work environment. This is not due to fear but rather because they simply don’t need to. Essentially, this boils down to creating psychological safety. Encouraging a no-blame culture, where errors are seen as opportunities for learning, forms the crux of such a space.
The Toxicity of Productivity
Harding views “productivity,” in its traditional sense, as an unpleasant concept. The reason is its basis on the relation between capital and labor to maximize output. This definition, unfortunately, doesn’t account for the individual differences in labor, nor does it apply to knowledge workers. Instead of controlling the amount of time spent in the office, companies should focus on impact. “Productivity in the workplace is about effectiveness,” Harding says. This focus on effectiveness can help companies foster policies that promote both well-being and productivity.
The Shift in Narrative and Hybrid Work
In today’s fast-paced business environment, hybrid work is increasingly becoming the norm. This new modus operandi presents fresh challenges and emphasizes the importance of defining outcomes to measure productivity. Jim Bartolomea, SVP, Global Head of People at ClickUp, offers some insights into this shifting paradigm. In the wake of the COVID-19 pandemic, as companies transitioned into remote and hybrid work environments, the narrative of productivity evolved from observing in-person work to ensuring effectiveness in less visible settings. This gave rise to what Microsoft Research termed “productivity paranoia” among managers. Bartolomea emphasizes the crucial distinction between activity and outcomes. According to him, undue importance is often given to activities without evaluating if these activities are leading to the desired outcomes. This aligns with Harding’s viewpoint on defining productivity in terms of effectiveness rather than hours spent at work.
Conclusions and the Path Ahead
At ClickUp, productivity definitions differ across teams. The People Team establishes quarterly OKRs (Objectives and Key Results), serving as their productivity measure. In contrast, the engineering team uses tangible metrics such as checked-in code and repaired bugs. Harding suggests managing intangibles can lead to higher growth rates, retention, and productivity. Workplace intangibles can include welfare, learning, innovation, and psychological safety. By focusing on these areas, companies can create a conducive work environment wherein employees do not need to question their relationship with their work and can thereby thrive. For further information on this critical topic, visit Gallup’s State of the Global Workplace Report.
In conclusion, the future of productivity in the workplace needs to revolve around effectiveness rather than a race against the clock. As global work patterns continue to evolve, companies need to discard the archaic approach of equating time spent at work with productivity. They must instead embrace a new perspective, one that values the well-being of employees and their ability to produce meaningful outcomes. This new outlook requires a cultural shift from a blame game to a learning environment, where mistakes are perceived as stepping stones toward improvement rather than hurdles. By fostering an environment of psychological safety and personal growth, companies can help employees navigate work-related challenges and cultivate a healthier work-life balance. Moreover, the concept of productivity should not be a cause for paranoia among management but should promote clear and measurable outcomes that contribute to the overall business objectives. The role of management is crucial in this process, ensuring the right balance of well-being and productivity is achieved. Recognizing and managing the ‘intangibles’ at work is a key aspect of this new approach to productivity. By understanding and addressing areas like welfare, learning opportunities, innovation, and psychological safety, companies can create an environment where employees can thrive. It’s clear that productivity is not just about economic output but is closely tied to well-being and innovation.
