State of the Global Workplace 2023 Report.

Somewhat under the radar, amidst preparations for the largest HR conference and another one aiming to become the largest, Gallup's annual report on how employees experience life and work slipped in.

The latest Gallup State of the Global Workplace 2023 Report revealed a great deal. The report presents the results of the world's largest survey on employee job satisfaction, which is ultimately a key predictor of organizational resilience and performance. The report was compiled "under pressure" from slowing economic growth, and its main message is: Change your approach to managing employees.

“Poor management leads to lost customers and lost profits, but it also leads to miserable lives. Gallup’s research into wellbeing at work finds that having a job you hate is worse than being unemployed - and those negative emotions end up at home, impacting relationships with family. If you’re not thriving at work, you’re unlikely to be thriving at life.”

Gallup next highlights the importance of focusing on employees, stating that six out of ten employees are in a state of quiet quitting, but the likelihood of increasing their engagement, and consequently their retention, can be achieved through several changes.

Employee engagement has reached an unprecedented peak, with South Asia leading at 33% engaged employees. However, this is only the case in South Asia.

Message for Leaders and HR

• In today's typical company, most employees are neither engaged nor actively disengaged. They occupy a seat, but have yet to take responsibility for their work. By not engaging these employees, leaders and HR miss an opportunity for organic company growth.
• Employee engagement is not the same as employee satisfaction. If we only measure employee satisfaction, we miss engagement. And the fact is, we mostly focus on "measuring" employee satisfaction. Engagement means our employees are psychologically present, not just physically. They understand what they need to do and why they are doing it, they have everything they need to work, and they have a supportive leader and a team that supports the leader. Employees know why their work is important.
• Employees who are in the quiet quitting phase are an opportunity to increase productivity in our companies; they are ready for inspiration and motivation, but for some reason, it is lacking.

The overview of engagement at the European level provides the following data.

• 13% of people are engaged
• 72% are not engaged, while
• 15% are actively disengaged.

As many as 56% of them think it's a good time to find a new job, while 34% plan to leave their current one. As many as 39% of employees experience daily stress, while 14% feel some form of anger every day.

Compared to the global situation, the results may seem even worse.

Comparing Croatia with other European countries, an engagement rate of 16% is recorded, placing Croatia 22nd out of 38 countries (with engagement being one percentage point lower than the previous year).

Regarding daily stress among employees, Croatia ranks a high 8th, with 44% of employees experiencing some form of stress daily.

13% of employees are angry daily, placing us 25th out of 38 countries.

As many as 44% of employees believe it's a good time to look for a new job, and here we are, "positively" relatively low at 24th place, compared, for example, to Denmark where as many as 70% of people feel the same way.

The data on stress, anger, and the intention to leave, when comparing remote, on-site, and hybrid employees, is very, very, very interesting.

I've written extensively about how detrimental remote work can be from a psycho-social perspective, and now this is further evidence that "you need to work with people," slowly and patiently, and allow the brain to "logically sort things out."

Thus, engagement is roughly equal (3 percentage points) among employees regardless of their work style. Daily anger is "reserved" for those working remotely, the intention to quit differs by only one percentage point between remote and on-site workers, while stress and the desire to leave are most pronounced among those in a hybrid work model, which is entirely logical because we are constantly "jolting our brains out of their routine." And no, this has nothing to do with the comfort zone.

What Went Wrong?

Things are simple. We've forgotten Maslow's hierarchy of needs. But above all, our employees have started seeking purpose in everything.

Purpose

Our employees want to be creative, they want to practice their creativity, have their vision of the future, and create new values. In fact, this is nothing new or something we didn't know current employees are seeking. Rather, we would say that today's employees, due to different priorities, have time to reflect on this and thus behave or desire it. As much as it may not seem so to us, today's generations entering the labor market have arrived at a time when the world, or the socio-economic situation, is most organized. Consequently, they also want to leave some kind of mark. Above all, they want an opportunity for personal growth and development. If at all possible, they seek jobs that align with their values and will allow them to be authentic. They are characterized by an enormous desire for a sense of belonging and community with other employees. The pandemic behind us partly caused this, leaving its mark on the psycho-social component of every person, especially those who were still psychologically and emotionally developing during that period. Also, many employees want to work in jobs that allow them to create a positive impact on society and the community. The feeling that their work helps others or contributes to solving social problems can be crucial for a sense of fulfillment and purpose. As stated, they are not asking for anything new. Namely, one of the theories often used in organizational psychology is Abraham Maslow's self-actualization, who says, "What a man can be, he must be." According to this theory, self-actualization is the process of achieving full potential and expressing one's purpose. It is important to note that self-actualization is at the top of Maslow's pyramid of needs. Once employees achieve purpose, it will contribute to greater job satisfaction, better mental health, and greater employee engagement. Namely, when we feel that our work has meaning and that we are contributing to something important, we are more likely to be motivated, productive, and committed to our work.

How important is purpose today in choosing/retaining a job?

A broader answer can be obtained by understanding generational, demographic, economic, social, and other changes over the last 20 or more years. Namely, the world known to new generations today is a significantly different environment from the one known to their parents' generations who are currently in the same labor market. Twenty or thirty years ago, the greatest influences on choosing a workplace, work environment, and even the industry itself were satisfying basic existential needs through job security and an acceptable monthly salary, according to Maslow's hierarchy of human/work needs. People mainly remained at lower levels, i.e., basic needs. However, our psychological profiles, and we ourselves, have a need to "climb" Maslow's pyramid of life/work needs. Namely, we may not think about buying a book if we haven't satisfied lower-level needs, but ultimately we will buy a book and perhaps go to a concert or the theater. Today, we increasingly turn to satisfying higher levels of that same Maslow's hierarchy. The most common reason for this is that we have generally satisfied physiological and safety needs in a certain way, by choosing a lucrative activity, a global increase in living and business standards, and so on. Accordingly, we seek jobs in which we can make an individual contribution, through which we can positively influence our environment, and, ultimately, be able to find and fulfill our own purpose.

Following this, Herzberg's two-factor theory is also frequently used in organizational psychology, which can be "overlapped" with Maslow's hierarchy of needs, clearly showing that every company must, of course, satisfy the so-called hygiene factors, primarily the amount of salary and benefits, and working conditions in general. After that come the so-called motivational factors, which are everything we have already mentioned.

Purpose in Work for Younger and Older Employees

As for younger generations, predominantly Generation Z, the meaningfulness and purpose of the work itself is today the biggest motivator and has the greatest influence on choosing a job, employer, and career in general. It is not uncommon today to see people, especially younger and more open to new experiences, changing entire professions every few years, in accordance with their current life stages and decisions. This is particularly noticeable in technologically advanced and sophisticated industries where a high level of productivity is required (ICT, pharmaceuticals, medicine, service, and other high value-added industries). The impact of the purposefulness of the work itself has become an increasingly mentioned concept, and for this reason, we have the impression that this trend has only recently appeared with younger employees. However, it should be noted that all of us, regardless of whether we are younger or older, have always strived and continue to strive to find and realize purpose in our own lives, and thus in work. Today's social and economic models allow us more freedom and choice in all segments, and consequently, we have more opportunities to choose work that we will consider purposeful and important.

Link Between Purpose and Maslow's Hierarchy of Needs

Purpose is strongly linked to the process of self-actualization. Purpose acts as a guide that directs an individual towards achieving their goals, finding meaning in their life, and attaining personal satisfaction. When a person has a clearly defined purpose, they will feel inspired and motivated to work on developing their potential and achieving their goals. Purpose can provide direction, focus, and a sense of fulfillment that are important elements of self-actualization.

Maslow, in his hierarchy of needs, included self-actualization as the highest stage of development. This is about achieving an individual's highest potential, realizing authenticity, creativity, morality, and life satisfaction. Purpose plays a key role in the self-actualization process because it helps individuals find meaning, achieve their values and goals, and focus on developing their potential.

Belonging

According to Maslow's hierarchy of needs, belonging and love represent one of the basic human needs. Belonging refers to the need for social interaction, connecting with others, forming close relationships, and a sense of belonging to a group or society. Belonging plays an important role in fostering engagement in various areas of life, including the workplace. A sense of belonging and support within a team or work environment will encourage a feeling of security, trust, and togetherness among employees. When they feel connected and supported by colleagues and leaders, employees are more inclined to be engaged in their work. Also, a sense of belonging gives employees the feeling that they are valued and important within the organization. When they feel included and that their contribution is significant, employees are more motivated and engaged in their work.

Next, and very importantly, a sense of belonging also includes identification with the organizational culture and values. When employees identify with the organization's mission, vision, and values, they feel connected to it and are more engaged in their work to support those goals.

Anger

Thirteen percent of people experience daily anger at work. It's important to note that anger isn't necessarily a bad thing; it can be a normal and natural emotion that helps us recognize injustice or set boundaries. Generally, anger is a complex emotional reaction that can arise for various reasons. Psychology recognizes several factors that can contribute to the onset of anger.

One of the main factors is the perception of threat or injustice. When a person feels that they have been wronged or that their integrity is threatened, it can provoke anger. Additionally, frustration, i.e., the feeling that goals or desires are thwarted, can also lead to anger.

Another factor is individual differences in temperament and personality. Some people may have a predisposition to greater anger due to their innate temperamental makeup or personal characteristics. Also, thought patterns and interpretations of situations can influence the emergence of anger. For example, negative thoughts or assumptions about others' intentions can intensify feelings of anger.

However, it might not be amiss here to consider that anger is a "product" of disappointment. Namely, there is a connection between anger and disappointment, given that both are emotional reactions to situations that do not align with our expectations or desires. Disappointment often arises from unfulfilled expectations. When a situation does not unfold as we expected, we can feel disappointment. Anger can be one of the emotional reactions to that disappointment.

Leaders and Engagement

Leaders play a significant role in fostering employee engagement at work. Employee engagement refers to their commitment, motivation, and positive attitude towards work and the organization. Here are several ways leaders can influence employee engagement:

• Leaders who are open, transparent, and regularly communicate with employees build trust and a sense of inclusion. Regular communication about goals, expectations, successes, and challenges helps employees feel informed and valued.
• Leaders need to set clear goals and expectations for their employees. When employees clearly understand what is expected of them and how their work contributes to the organization's larger goals, it will motivate them and encourage engagement.
• Leaders who provide support, mentorship, and development opportunities for employees help them reach their full potential. Through regular feedback, support in achieving goals, and encouragement of personal growth, leaders can contribute to employee engagement.
• Monitoring employee performance and providing timely and constructive feedback is crucial for engagement. Leaders who recognize and reward employee achievements create a culture where work is valued and rewarded, which can foster further engagement.
• Leaders who promote collaboration, teamwork, and a sense of community can create an environment where employees feel connected and motivated. By encouraging teamwork, leaders can support employee engagement and productivity.

Psychometrics

Today, we often rely on self-assessments for both employees and leaders. It is gradually becoming common practice to psychometrically assess employees during recruitment, but assessment for promoting employees to leadership roles is rare. Today, leadership skills can be easily tested through gamified psychometric assessments, focusing on aspects critical for leaders.

Example of a leadership report:

Based on such a report (this is just a summary), every HR professional can easily develop tailored training for "their own leaders."

Also, what we have today as a psychometric instrument is Maslow's hierarchy of work needs. We have so far used it, through our models, as a predictor of employee turnover, and with correlation with the results of Gallup's employee satisfaction survey, results on employee engagement can also be derived.

Employee Branding

The benefits of employee branding in attracting talent are undeniable. An attractive employer image can contribute to retaining existing employees. When employees feel they are part of an organization that is valued and cares about their well-being, they are more likely to stay longer. Also, through a positive image, employers can encourage greater employee engagement. A sense of pride and belonging to the organization can motivate employees to give their best and achieve better results. However, what is important to understand is that this is not enough and can only be short-term. Also, if the employer's image is based on marketing campaigns or promises that do not reflect the reality of the workplace, employees may feel disappointed. Such inconsistency can lead to a loss of trust and negatively affect the work atmosphere, and thus engagement. In any case, whether we have employee branding or not, we must be aware of the importance of solving problems in our companies. Because if there is a minor problem, solve it. Minor problems eventually become big problems. And of course, this applies equally to the business environment, love, friendships, health…

Conclusion

The “State of the Global Workplace 2023 Report” highlights the importance of focusing on employees and the need for changing management approaches. In doing so, when we talk about focus, it is necessary to generalize as little as possible, especially generationally, and to dedicate more attention to a deep understanding of our employees.

Gallup's research reveals that most employees are not engaged at work, representing a missed opportunity for organic organizational growth. Employee engagement is not just a matter of satisfaction; it is based on their sense of purpose, belonging, and emotional presence.

Younger generations increasingly seek purposeful jobs that will allow them personal growth and development, while anger and stress often stem from disappointment and unfulfilled expectations.

Leaders play a key role in fostering employee engagement through transparency, clear goals, support, and recognition.

Also, psychometric assessments can be useful tools for finding and retaining talent. This focus on the employee and a deeper understanding of them will provide us with psychometric instruments such as Maslow's hierarchy of (work) needs and gamified psychometric assessment of leaders.

And finally, it's important to solve problems in companies to ensure a positive work environment, increase employee engagement, and cultivate a supportive corporate culture.