Something Worth Reading: Employee Satisfaction Doesn’t Matter (from LinkedIn)

I’ve heard a lot of buzz about this article on LinkedIn. The article, entitled “Employee Satisfaction Doesn’t Matter” is written by Jim Clifton (CEO at Gallup) and asserts that focusing on job perks and striving to be atop “best places to work” rankings doesn’t actually improve performance. He continues to argue that:

Employees don’t want to be “satisfied” as much as they want to be engaged. What they want most is a great boss who cares about their development, and a company that focuses on and develops their strengths. Trying to satisfy employees’ appetites for free lunches, lattes, and ping pong tables is giving people something they don’t deeply want — and that isn’t natural or good for them.

There are a few things to consider about Mr. Clifton’s assertions here:

  • First – the article and study that he references are incredibly interesting. You can find the summary here and the report in full here. Its data indicates a point that I think Mr. Clifton neglects to emphasize in his article: that both superficial perks and traditional benefit incentives pale in employee impact when compared to more strategic engagement.
    • It would be interesting to see what impact specific incentives have not on performance, but on recruitment. Stronger candidates are likely unable to really assess employee engagement. So, while they may not play a larger role in employee performance, it is entirely possible that being a “best place to work” attracts higher caliber candidates initially. In a field like development where the talent pool is extremely limited – it is difficult to rely on selectivity of candidates to build a stronger program (as the Gallup report advises).
  • There is the implication here that employee satisfaction is irrelevant to effective management. However, neither Mr. Clifton’s article or the full report actually benchmark, define, or attempt to measure satisfaction or assess its correlation to employee engagement. It seems that they use the term “satisfaction” to loosely cover everything that is not considered engagement. Plus this approach allows them to use a title as eye-catching as “employee satisfaction doesn’t matter.”
  • Clifton’s strongest point is that management is largely responsible for establishing and reinforcing a culture of employee engagement. “A winning culture is one of engagement and individual contribution to an important mission and purpose.”

 

Other interesting data points from this report that I found include:

  • The percentage of employees across the US who are engaged has not changed much at all since 2000 (it remains around 30%)
  • Companies with less than 10 employees had the highest ratio of engaged workers.
  • Organizations who are in a hiring phase have 30% more engaged employees than those who are cutting jobs (not a surprise there)
  • Millennials, even when engaged, are more likely to look for new jobs and opportunities.
  • Vacation time is not necessarily a good tool to attract your ideal talent. “Engaged employees who took less than one week off from work in a year had 25% higher overall well-being than actively disengaged associates — even those who took six weeks or more of vacation time.”
  • Employees who spend part of their time working from home are, on average, more engaged and put in more hours than their counterparts.
  • Remote Workers: Balancing Collaboration With a Sense of Freedom

 

 

So how can we apply this data to the non-profit sector and fundraising? There are a few implications that fundraising managers and leaders should consider:

  • That flex-time and the ability to work from home can actually lead to better engaged employees
  • That engagement is driven by managerial attention and leadership. Strong team managers and leaders are hard to come by in the fundraising world (not coincidentally – in a recent BWF survey weak management or development team leadership was listed as a leading cause of dissatisfaction among frontline fundraisers). Development shops need to be proactive not only in the hiring and recruitment of their talent, but also in the investment and cultivation of strong managers, which results in better retention and performance results.  Frontline fundraisers in particular require a combination of direction from and empowerment by management.
  • That cause and passion about the institution matter. We’ve touched on this before; fundraisers care and are driven by your institution’s mission and impact. The more you can celebrate their contributions to the cause and integrate their activities with the overall culture and impact of your organization the more engaged they will become.

 

We will talk some more about creating and supporting effective managers in a later post. In the meantime – enjoy the end of the fiscal year!

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