Work Harder....please.

One of the most important goals for any manager is the ability to run their organization as efficiently and as effectively as possible. This means that all aspects of the organization need to operate in a manner that allows for the best outcomes to occur the first time, every time. For this to occur, it is critical for the manager to have a devoted, effective, and efficient workforce consisting of individuals who are properly trained and (most importantly) are happy with their job.

So, if we assume that efficiency and effectiveness is a byproduct of happiness, how can a manager at minimum ensure the happiness of their workforce? Often, compensation is considered amongst the most important aspects of worker happiness. However, it has been noted that compensation is not the most important determinant of worker happiness (Williams et al, 2007), it is actually one of many different units that determine worker happiness. Instead, to ensure the happiness of their workforce, manager should focus on a total benefits package (Balkin et al, 1993) that focuses on increasing the quality of life of the worker.

This understanding between the difference in compensation and quality of life is very difficult and almost impossible to compare. How do we measure a quantitative value (compensation) vs. a qualitative value (ie: quality of life) in the first place? Many human resources departments have taken it upon themselves to lean in one direction or another, often putting on emphasis on compensation or an emphasis on benefits. In many ways this is a positive for some workers, but is a negative for others. The reality is that benefits should not be viewed as a one size fits all. Rather, they should have the ability to change and be flexible enough to fit the needs and expectations of each individual worker. This is especially true at a time when private industry values flexibility, efficiency, and effectiveness above all aspects; why can't a benefits plan also mirror this belief?

Many benefits plan continue to offer outstanding pay scales, paid vacation, even wellness benefits all aimed at keeping the workforce content, thus leading to less turnover and greater worker efficiency/effectiveness. Though it is commendable that so many companies continue to strive to offer prospective employees a competitive benefits package that is both marketable and equitable, many still do not understand that "throwing money" at the problem will not cause it to go away. Instead, part of the recruitment process should be to gain further understanding of the individual to see what benefits actually are needed to fit their own life. This may help the organization to save money and provide evidence that it is willing and capable of adjusting to fit the needs of the individual. Such savings can even be passed on to the individual worker in the form of increased compensation (if provided they desire this) or even an increase in other benefits.

For an organization to survive and thrive will require further flexibility and adaption on the part of their benefits package. This ability to provide a better benefits package designed for the individual worker provides evidence that the organization is doing everything within its power to support the individual with their won goals and aspirations. This in turn can lead to greater worker happiness and result in a more efficient/effective workforce.


References:
1.)M.L. Williams, et al. 2007. Understanding Multiple Dimensions of Compensation Satisfaction. The Journal of Business and Psychology. V21:3, pp.429-459.

2.)D. B. Balkin, et al. 1993. The Determinants of Employee Benefits Satisfaction. The Journal of Business and Psychology. V7:3, pp. 323-339.