Money is not everything in the workplace. So, what makes you want to stay in your job?

Tuesday: Return Driven Strategy FROM THE DESK OF MILES EVERSON: Happy Tuesday! Welcome to today’s edition of “Return Driven Strategy (RDS).” For those of you who are not yet familiar with this, RDS is a pyramid-shaped framework with 11 tenets and 3 foundations. When applied properly, these principles help businesses achieve their objectives. Today, let's talk about another aspect of the 9th tenet of RDS (Engage Employees and Others). Continue reading below to know the factors that make employees engaged and want to stay in a firm. CEO, MBO Partners Chairman of the Advisory Board, The I Institute

Money is not everything in the workplace. So, what makes you want to stay in your job? What makes you want to stay at a company in the long term? Salary? Work culture? Flexibility in schedule? Different people have different answers to this question, depending on their preferences and goals. The reason is people have their own definition of “wealth.” If a person defines wealth as monetary, then most likely he or she will choose a company with a higher pay. If a person defines wealth as being able to enjoy and have freedom even while working, he or she will most likely choose a company with a great work culture regardless of the pay. … but how do we see this—employee management—through the lens of companies seeking to hire such talents? We’ll answer that in Return Driven Strategy’s (RDS) Tenet 9… Engaging Employees and Others: A Framework According to Professor Joel Litman and Dr. Mark L. Frigo in the book, “Driven,” any successful firm seeks employees who are ENGAGED. What do we mean by “engaged” here? No, we’re not talking about employees who are about to get married. What we mean here is a state where people take ownership of what they do and actively strive to help the business achieve its objectives. Here’s the thing: Engaged employees are CREATED. Sure, there are a few talents who are born to be enthusiastic and excellent in their jobs regardless of their circumstances; however, keeping them engaged requires something from the part of the businesses too. … and what is that? One framework studied and promoted by the consulting firm of Hewitt Associates focuses on seven “levers.” Of these levers, only one is compensation-based. Let’s talk about these one by one… Compensation and Benefits - Employee engagement can be significantly influenced by the compensation and benefits package offered by an organization: Competitive salaries, performance-based bonuses, health insurance, retirement plans, and other perks—all of these contribute to employees’ sense of value and recognition within a company. Besides, when employees feel adequately compensated for their contributions and believe that their financial needs are being met, they are more likely to be engaged and committed to their work. Culture and Purpose - The organizational culture and sense of purpose play a vital role in employee engagement too. Think about this: A positive and inclusive culture fosters a sense of belonging and encourages employees to align themselves with a company’s values and mission. When employees feel connected to the broader purpose of the organization and understand how their individual roles contribute to its success, they are more likely to feel motivated and engaged in their work. Work Activities - Engaging work activities involve tasks and projects that challenge employees, allow them to use their skills and creativity, and provide opportunities for growth and development. When employees are given meaningful and interesting work that aligns with their strengths and interests, they are more likely to feel engaged and satisfied in their roles. Relationships - Positive relationships with coworkers, managers, and other stakeholders significantly impact employee engagement. This is because a supportive and collaborative work environment fosters trust, communication, and teamwork, leading to higher levels of engagement and morale. Strong relationships also provide employees with a sense of belonging and support, both of which are essential for their overall well-being and job satisfaction. Leadership - Effective leadership is critical for fostering employee engagement. After all, leaders who are transparent, communicative, and empathetic, provide clear direction, offer support and feedback, and empower employees to take ownership of their work create a sense of trust and psychological safety within their teams. The result? Employees feel valued and respected by their leaders, and are more likely to be engaged and motivated to contribute their best efforts. Quality of Life - Factors such as work life and personal life balance, flexibility, and overall well-being also impact employee engagement. Organizations that prioritize employee wellness initiatives, offer flexible work arrangements, and promote a healthy work life and personal life balance demonstrate a commitment to their employees’ holistic needs. When employees feel supported in managing their personal and professional responsibilities, they are better able to focus and engage in their work. Opportunity - Providing opportunities for growth, advancement, and learning is essential for maintaining high levels of employee engagement. Organizations that invest in employee development programs, offer career advancement opportunities, and encourage continuous learning have an edge over other firms. When employees see a clear path for advancement and feel supported in reaching their career goals, they are more likely to be engaged and committed to their long-term success within the organization. Hewitt contends that at best, monetary compensation can only be “non-negative.” What does this mean? A business can pay people too little and gain less engagement from employees OR fail to hire the right ones in the first place. Meanwhile, if a firm overpays, it still doesn’t generate overwork or over-effort. Instead, other factors beyond compensation tend to drive the right employment packages. See? There is a total shift in thinking when a firm sees employees and other individuals as important to the firm as customers. This brings the entire concept of great marketing strategy to bear on superior hiring. High-performing firms find themselves not only fulfilling the needs of customers but fulfilling the needs of employees and other individuals on route to achieving that end. … and when these firms generate high cash flow returns for investors, all the constituents of these businesses win. Keep this information in mind! Also, if you’re looking to gain a better understanding of Return Driven Strategy and Career Driven Strategy, we highly recommend checking out “Driven” by Professor Litman and Dr. Frigo. Click here to get your copy and learn how this framework can help you in your business strategies and ultimately, in ethically maximizing wealth for your firm. Hope you found this week’s insights interesting and helpful.     In today’s work landscape, there’s a stereotype that when someone excels in his or her work, that person will be given more tasks. Learn more about the importance of taking the time to master the art of writing well in next week’s article!