Companies are twisting themselves into knots to empower and challenge their employees. They’re anxious about the sad state of engagement, and rightly so, given the value they’re losing. Consider Gallup’s meta-analysis of decades’ worth of data: It shows that high engagement—defined largely as having a strong connection with one’s work and colleagues, feeling like a real contributor, and enjoying ample chances to learn—consistently leads to positive outcomes for both individuals and organizations. The rewards include higher productivity, better-quality products, and increased profitability.
So it’s clear that creating an employee-centric culture can be good for business. But how do you do that effectively? Culture is typically designed in an ad hoc way around random perks like gourmet meals or “karaoke Fridays,” often in thrall to some psychological fad. And despite the evidence that you can’t buy higher job satisfaction, organizations still use golden handcuffs to keep good employees in place. While such efforts might boost workplace happiness in the short term, they fail to have any lasting effect on talent retention or performance.