The Enthusiastic Employee
When
they are first hired, about 95 percent of employees are excited
about their work. But by the time the honeymoon is over, 9
out of 10 companies
find significant declines in employee morale with a negative
impact on performance. What causes these declines, and how
can employees be engaged? By and large, according to the authors
of a
new
book,
The
Enthusiastic Employee, it is "management that kills enthusiasm!"
The authors — David Sirota, Louis Mischkind, and Michael Irwin Meltzer — offer a set of solutions for boosting employee enthusiasm based on employee-attitude surveys of more than 4 million employees at diverse companies over 30 years. These surveys have helped them identify links between employee enthusiasm and company performance, as well as the key drivers of employee enthusiasm.
Why is employee enthusiasm important? A number of studies have highlighted the link between employee attitudes and performance. In their studies, the authors found that companies with high employee morale performed more than 20 percent higher than average. Those with low morale performed 5 percent lower (measured by increase in stock value for 2002). Similar results were seen with return on investments and return on assets. Other studies have found returns as high as 30 to 40 percent. (The authors point out that the relationship between enthusiasm and performance is reciprocal. Enthusiasm leads to performance, and high performance increases enthusiasm in a reinforcing cycle.)
Three Factors
In their surveys, the authors found that job satisfaction is remarkably high, with 76 percent of employees expressing positive satisfaction with their jobs in employee surveys. This is true even for the younger "slacker" generation, widely believed to be generally dissatisfied with their jobs. But while satisfaction is high, employee enthusiasm is in short supply.
How can enthusiasm be encouraged? From their research, the authors find that there are three factors that contribute primarily to employee enthusiasm:
- Equity: Employees
want to feel like they are being treated justly in relation to
the basic conditions of employment. The key areas where fair
treatment plays out are in job security, compensation, and
respect.
- Achievement: Employees
need to take pride in their accomplishments by doing things that
matter and doing them well. They need to receive recognition
for their accomplishments
and take pride in the organization's accomplishments.
The key areas for achievement are the defining organizational
purpose and principles, job enablement
(making it easier to get the job done), job challenge and feedback,
recognition, and rewards.
- Camaraderie: Employees also need to have warm, interesting, cooperative relations with others in the workplace. The capacity of the organization for productive teamwork is critical to building this camaraderie.
Organizations that focus on these three areas have the opportunity to build true "partnership" organizations. While companies often use paternalistic, transactional, or even adversarial relationships, the authors found that the policies that create the highest levels of long-term performance are based on partnerships. They describe these relationship as "the bonds that develop among adults working collaboratively toward common, long-term goals and having a genuine concern for each other's interests and needs."
This month's articles:
- Senior
Management Programs
Urban history, anthropology, and even sonnets offer insights on pattern recognition to participants in Wharton's Advanced Management Program.
- Thought
Leaders
A new Wharton program looks at how to boost returns by focusing on "customer-centricity."
- In the
Classroom
NFL players come to Wharton to work on their post-career game plans.
- Wharton
School Publishing
Enthusiastic employees can boost performance by 30 to 40 percent. A new book looks at the sources of enthusiasm.
- Education
à la Carte
Gain a broader view with Wharton's upcoming programs.