In This Episode: It’s a conundrum in the business world, but this idea really is about living in general. And that is, how can businesses encourage their employees to be more productive, healthier, and provide better customer service? University researchers applied some Uncommon Sense to this age-old question, and came to some surprising conclusions.
- To help support Uncommon Sense, see the Patron’s Page.
- The study behind the 46 percent increase in healthcare costs is from the journal BMC Public Health — and is hardly new: it’s dated 2011.
- An example of stress resulting in job turnover is from the American Institute of Stress: “63% of US workers are ready to quit their jobs due to stress.” according to the 2019 State of Employee Communication and Engagement study.
- Highly rated books on the subject include Awakening Compassion at Work: The Quiet Power That Elevates People and Organizations (2017) and Infinite Vision: How Aravind Became the World’s Greatest Business Case for Compassion (2011). For one on compassion in general, not necessarily relating to business operations, try Twelve Steps to a Compassionate Life (2011).
I’m Randy Cassingham, welcome to Uncommon Sense.
This episode is brought to you by Uncommonly Sensical listeners who support this podcast so that there are no ads to interrupt your listening. See thisistrue.com/patrons for details, to join them, and choose from some extra supporter benefits.
What’s the go-to motivational style of stereotypical managers when employees slack off, make mistakes, or otherwise don’t live up to the expectations of their bosses? Demerits, yelling, or other punishments like denial of time off or favored shifts are typical. The question is, does that work?
Dr. Emma Seppala, the Science Director at Stanford University’s Center for Compassion and Altruism Research and Education (that’s a mouth-full!), reports that such stress-inducing management styles not only don’t work, it makes things worse for both the employees and the business in the long run. “Managers often mistakenly think that putting pressure on employees will increase performance,” she says. “What it does increase is stress — and research has shown that high levels of stress carry a number of costs to employers and employees alike.”
Those costs, she says, especially include higher healthcare expenditures, and higher turnover.
You might wonder if researchers like Seppala can actually measure those supposed effects. Aren’t they just assuming that there are increases in healthcare costs and turnover just because it simply seems likely? After all, we’ve seen many so-called “obvious” research assumptions prove to be wrong — again and again. Butter is terrible for people and you should eat margarine instead …only after they do actual studies do they discover that butter really isn’t that bad, and margarine has very negative health impacts!
For these workplace effects, researchers identified businesses that used yelling, punishments, and other sorts of stress as a “motivational” tool, and compared them with similar businesses that used more positive motivational strategies, and then looked at the resulting data. And sure enough, the healthcare costs for companies in the higher stress group were 46 percent greater. In particular, Dr. Seppala says, those employees had more heart disease. And, she says, the majority of employees in that environment had looked for, or were actively looking for, new jobs. Job turnover is a huge cost to businesses. Finding quantitative data about these consequences is not just a staggering illustration of how wrong-headed these managers are, but they also make the shortcomings of such methods really clear against the bottom line of the business.
Seppala says there is a movement — supported by research — that has proven to be better: “an ethic of compassion.” It not only benefits employees’ mental and physical health, but it improves the bottom line.
“Happy employees also make for a more congenial workplace and improved customer service,” Seppala says. “Employees in positive moods are more willing to help peers and to provide customer service on their own accord. What’s more, compassionate, friendly, and supportive co-workers tend to build higher-quality relationships with others at work.”
That’s an awful lot of benefit that bad managers flush down the drain, damaging the business’s profitability.
OK, so if you agree that “compassion” is a better way to operate, that it helps increase the success of a business rather than decrease it, what does that mean? Do bosses have to “sing Kumbaya” with their employees?
Hardly. Yet Seppala argues that despite all the research, which is not exactly new here in 2019, many managers shy away from compassion for “fear of appearing weak.” It seems to me that “fear of appearing weak” in the face of this research proves those managers are weak! There’s a good selection of books available on the subject, and I’ll link to a couple on the Show Page.
Rather than hold hands around a camp fire, to succeed with these ideas managers should: be fair and self-sacrificing, promote cooperation rather than competition among employees and teams, reward employees who help their co-workers succeed, promote bonding, and demonstrate service and high ethics themselves. That is true leadership that employees can emulate.
But it can’t just be lip service: there has to be a real attitude among managers and executives to create such an atmosphere. If they do, they should see a number of benefits, Seppala says: increased productivity, higher levels of customer service, increased social connection among employees, an increase in commitment to the workplace, and higher levels of engagement with their jobs. Not to mention the bottom line effects of lower healthcare costs and employee turnover, which makes all of this to really be a huge win-win for employees and employers alike.
An “ethic of compassion” is not just the more human thing to strive for, it’s the best policy for businesses, adding to their profitability. Now that’s Uncommon Sense!
To comment on these ideas, or to see links for more information, the Show Page for this episode is thisistrue.com/podcast46
I’m Randy Cassingham … and I’ll talk at you later.
- - -
This page is an example of This is True’s style of “Thought-Provoking Entertainment”. True is an email newsletter that uses “weird news” as a vehicle to explore the human condition in entertaining way. If that sounds good, click here to open a subscribe form.
To really support True, please sign up for a paid subscription to the much-expanded “Premium” edition:
Q: Why would I want to pay more than the regular rate?
A: To support the publication to help it thrive and stay online: this kind of support means less future need for price increases (and smaller increases when they do happen), which enables more people to upgrade. This option was requested by existing Premium subscribers.