The Case For Passion: Talenpac
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talenpac
THE CASE FOR PASSION
Photo by Greg Rakozy on Unsplash
The Case for Passion
Introduction In 2016, Gallup reported only 13% of employees felt engaged at work.1 Aon Hewitt published a similar report the same year but claimed up to 65% of employees felt engaged.2 These findings were based on an extensive global study each firm conducted. The striking difference between the findings suggests that there may be differing views about the definition of employee engagement and its drivers. The findings also proof that regardless of whether it’s 13% or 65%, employee engagement across the world is low. The question is, how low? This white paper starts by identifying a common definition for employee engagement. We achieve this by studying the overlaps between the many definitions of employee engagement by leading HR advisory firms. We then make a case for focusing on passion instead of employee engagement and quickly proceed to identify the specific drivers of employee passion. We conclude with suggestions on how to start building a passionate organisation. We have adopted a bias for brevity over lengthy analysis. This is done to ensure the information in this paper can be quickly studied and adopted at the workplace. We welcome readers to invest in further indepth online research where they feel curious or sceptical. We have also intentionally studied employee engagement as it is practically applied rather than as it is academically understood.
Employee Engagement Defined Gallup defines engaged employees as those who are involved in, enthusiastic about and committed to their work and workplace.3 Aon Hewitt defines engaged employees as those who are passionate, enthusiastic, devoted, immersed fully, driven, focused and concentrate intensely to complete their task.4 Hay Group on the other hand defines employee engagement as ‘a result achieved by stimulating employees’ enthusiasm for their work and directing it toward organizational success’.5 Finally, PWC defines employee engagement as the extent to which employees are motivated to contribute to business success and are willing to apply discretionary effort to accomplish tasks important to the achievement of business goals.6
www.talenpac.com
2
The Case for Passion
Commitment and Enthusiasm While each firm defines employee engagement in their own unique way, they all seem to agree that commitment and enthusiasm are common traits of an engaged employee. Our research also indicated that the definition of employee engagement has evolved over the last few decades to accommodate new insight and the changing talent market. This warranted a study into the origins of employee engagement.
The Origins of Employee Engagement Employee engagement was first introduced to the world in 1990 by William Kahn in his seminal article titled “Psychological Conditions of Personal Engagement and Disengagement at Work”. Little academic research has gone into understanding the pre-employee engagement era but experts seem to agree that before the rise of employee engagement there was employee satisfaction. Satisfaction was concerned about employee happiness and this was largely measured by how employees felt about the way they were being treated at work. For instance, were they being paid fair wages, was the working environment conducive, did they enjoy a healthy work/life balance and was there diversity and inclusion at the workplace? Employee satisfaction worked well during the era of industrialization where employees were hired to do as instructed (i.e. execute specific technical tasks). Then came the knowledge economy and with it organizations hired employees to create and implement solutions (i.e. take initiative, creatively problem solve and drive change). Employers quickly realized that the best employees in the knowledge economy weren’t just committed to work, they were enthusiastic about work. This, along with increasing thought leadership on the topic of employee involvement at work gave birth to the idea that employees should be passionate about work. Passion was naturally combined with satisfaction and this new hybrid was called employee engagement. Hence, today when we ask if an employee is engaged, we’re essentially asking two questions: 1. Is the employee satisfied at work? 2. Is the employee passionate about work?
Engagement is
Satisfaction + Passion www.talenpac.com
3
The Case for Passion
Employee Engagement Drivers Our research found that a wide variety of terminology has been used to define engagement drivers. While some frameworks focus on just a few core factors, others focus on many. Below is a list of all the drivers that have been identified by global HR advisory firms who are driving the employee engagement agenda. Where suitable we have grouped drivers for convenience. • • • • • • • • • •
Meaningful Work / Job Fit Leadership (Connectedness / Clarity / Consistency) Career Growth / Learning Opportunities Compensation, Rewards & Recognition Autonomy / Empowerment Employer Brand Work Life Balance Fairness / Job Security / Diversity Customer Orientation & Quality Culture / Collaboration / Connectedness to Colleagues
www.talenpac.com
4 Photo by Wayne Bishop on Unsplash
88% of employees are not passionate at work.
The Case for Passion
As reported by Deloitte in their 2014 article titled Passion at Work
Shining a Spotlight on Passion We believe that by combining satisfaction and passion, employee engagement surveys have incorrectly reported the respective levels of satisfaction and passion across the globe. We suspect a detailed analysis of each element will proof employee satisfaction in most companies is higher than reported while employee passion is worrying low. Our assertions are based on our observations of a changing talent landscape.
Employee Satisfaction is the Status Quo Today’s talent market is employee driven which essentially means employees get to choose where they want to work. This shift in power from the employer to employee has forced employers to become better attuned to drivers of satisfaction. We have seen the rise of employee satisfaction through fairer compensation packages, increasing employee rights and better working environments.
Passion: The New Battle Ground for Talent While the focus on employee satisfaction increases, the opportunity to be passionate about work remains a difficult variable to address. The rise of the Gen Y workforce has in many ways applied additional pressure on the need for passion at work. We believe the convergence of a knowledge economy that requires passionate workers and Gen Y employees who desire to be passionate about work justifies that our conversations about employee engagement be focused on the element of employee passion.
Defining the Passionate Employee Loves Work
Takes Ownership
Demonstrates Grit
Genuinely enjoys the job or industry. Is self-motivated to study their subject matter.
Treats work goals as personal goals. Takes responsibility for results.
Committed, especially in tough times. Demonstrates tenacity and never gives up.
www.talenpac.com
5
The Case for Passion
What Specifically Drives Passion? www.talenpac.com
6 Photo by Carson Arias on Unsplash
The Case for Passion
According to the Experts The subject of employee passion has been studied extensively over the past few years. Here’s what the experts are saying.
Dan Ariely Behavioral Economist, Best Selling Author Dan Ariely studies what motivates us and presents evidence that we thrive at work when we have a sense of purpose and when we feel like we’re making progress.
Watch his TED Talk
Daniel Pink New York Times Best Selling Author Daniel Pink’s research proves that employees are motivated when they have autonomy at work, the opportunity for mastery and when they feel a sense of purpose at work.
Watch his TED Talk
Simon Sinek New York Times Best Selling Author Simon Sinek argues that great leaders inspire action by articulating a clear ‘why’ (purpose) for others to rally around. His TED Talk is one of the most watched in history.
Watch his TED Talk
www.talenpac.com
7
The Case for Passion
Purpose Time and again, a sense of purpose has been identified as a core driver behind passionate employees. Purpose is essentially the answer to a simple question, ‘Why work?’ Passionate employees have a compelling reason to work. They consider their work as an opportunity to make progress towards achieving a meaningful outcome. In other words, passionate employees feel that their work is in service of attaining a goal they care about. The first step towards understanding what drives purpose is to appreciate that purpose if dynamic. An individual’s purpose changes over time and is driven by multiple factors which constantly change. At Talenpac, believe employees find purpose at work through four factors.
The Purpose Factors Money
Status
Compensation, Benefits, Bonuses At the very basic level, employees find purpose when their work supports their financial needs.
Job Title, Awards, Public Recognition Work offers employees social standing. The incremental nature of status gives employees purpose at work.
Growth
Impact
Learning and Development, Promotion There is an inherent desire to better ourselves. Employees look to their jobs to offer them the opportunity to grow.
Value for Customer, Social Impact Increasingly, employees expect their work to make a difference in the world. This is especially true with Millennials.
Purpose is Dynamic. The mix of factors that gives someone purpose today might not be the same tomorrow.
www.talenpac.com
8 Photo by RKTKN on Unsplash
The Case for Passion
Developing Passionate Employees If passion is driven by purpose and purpose is the dynamic combination of 4 factors, the journey towards developing passionate employees requires that the organization helps employees find a sense of purpose at work. To start with, employers need to articulate: • • • •
A clear rewards structure that is fair, transparent and motivating A culture where employees are recognized formally and informally Opportunities for learning, progression and overall growth How the organization positively impacts its customers and the world
In many situations, organizations have the above factors well defined. The hurdle has been in communicating and aligning employees to these factors. This is where the real challenge lies and tackling it requires that organizations nurture a unique cohort of Purpose-Driven Leaders.
Purpose-Driven Leaders A unique type of leader who helps employees to: 1. Understand their personal source of purpose 2. Connect their source of purpose to the opportunities available at work 3. Continuously re-align their personal purpose to the opportunities at work While Purpose-Driven Leadership requires a mastery of certain skills it also requires the adoption of a certain mindset. It requires for leaders to step away from the more functional, task-oriented manager-employee relationship. Instead, it suggests that leaders connect with their employees on a more personal and emotional level. This requires trust building and involves a significant investment of time and energy.
www.talenpac.com
9
The Case for Passion
Conclusion Our study of employee engagement and its drivers highlights the value of focusing on developing engaged employees who are not just satisfied at work but who are passionate about work. We believe that by blending satisfaction and passion, our conversations about employee engagement ignores the worryingly low levels of passion in today’s workforce. Further research into what drives passionate employees revealed that passion is driven by purpose which we claim is dynamic and always changing. Understanding what drives passion should empower organizations to clearly articulate how their employees can find purpose at work. However, this is merely the first step an organization needs to take. Developing passionate employees will require organizations to develop a new cohort of leaders we call Purpose Driven Leaders. This unique type of leadership demands that leaders adopt a mindset which prioritizes trust-based relationships with employees over tasked-based relationship. It is a shift in leadership posture that demands a commitment of time and energy towards developing passionate, high performing employees. This paper is merely a starting point to have more in-depth conversations about the growing passion gap in today’s workforce. The elusive nature of passion will continue to challenge our understanding of it but the increasingly competitive talent market demands we start engaging with the topic of passion more meaningfully.
www.talenpac.com
10
The Case for Passion
Endnotes 1. Annamarie Mann and Jim Harter, The Worldwide Employee Engagement Crisis, Gallup, January 7, 2016, http://www.gallup.com/businessjournal/188033/worldwide-employee-engagementcrisis.aspx?version=print 2. 2016 Trends in Global Employee Engagement, Aon Hewitt, 2016, http://www.aon.com/ecuador/attachments/Engagement2016.pdf 3. This definition was found on Gallup Daily: US Employee Engagement, http://www.gallup.com/poll/180404/gallup-daily-employee-engagement.aspx 4. This definition was extracted from page 5, Engagement 2.0, Aon Hewitt, 2010, http://www.aon.com/attachments/engagement_2%200_oct2010.pdf 5. This definition was found on Hay Group’s website, http://www.haygroup.com/us/services/index.aspx?id=1742 6. This definition was found on PWC’s Website, April 3, 2016, https://www.pwc.com/mt/en/pwcmalta-press-room/pwc-2015-employee-engagement-landscape-study-championing-greatnessor-capturing-mediocrity.html
Employee Engagement Drivers were collated from 1. 2017 Trends in Global Employee Engagement, Aon Hewitt, 2017, http://www.aon.com/engagement17/ 2. Dr. Drea Zigarmi, Dr. Kim Nimon, Dobie Houson, David Witt and Jim Diehl, From Engagement to Work Passion, The Ken Blanchard Companies, 2009 3. Junhui Wang, The Antecedents of Employee Engagement: A Comparative Analysis between Finland and Asia, Aalto University School of Business, Oct 2016, https://aaltodoc.aalto.fi/bitstream/handle/123456789/24554/master_Wang_Junhui_2016.pdf?se quence=1
www.talenpac.com
11
The Case for Passion
Contacts For more information on this paper or about Talenpac, please contact: Navin Muruga Managing Director Talenpac PLT [email protected] +6 012 307 2432
About Talenpac Talenpac is a boutique HR advisory firm. We help organizations develop passionate high performing employees through customized consulting solutions and high impact workshops.
Copyright © 2017 Talenpac PLT. All rights reserved.
www.talenpac.com
12
THE CASE FOR PASSION
Photo by Greg Rakozy on Unsplash
The Case for Passion
Introduction In 2016, Gallup reported only 13% of employees felt engaged at work.1 Aon Hewitt published a similar report the same year but claimed up to 65% of employees felt engaged.2 These findings were based on an extensive global study each firm conducted. The striking difference between the findings suggests that there may be differing views about the definition of employee engagement and its drivers. The findings also proof that regardless of whether it’s 13% or 65%, employee engagement across the world is low. The question is, how low? This white paper starts by identifying a common definition for employee engagement. We achieve this by studying the overlaps between the many definitions of employee engagement by leading HR advisory firms. We then make a case for focusing on passion instead of employee engagement and quickly proceed to identify the specific drivers of employee passion. We conclude with suggestions on how to start building a passionate organisation. We have adopted a bias for brevity over lengthy analysis. This is done to ensure the information in this paper can be quickly studied and adopted at the workplace. We welcome readers to invest in further indepth online research where they feel curious or sceptical. We have also intentionally studied employee engagement as it is practically applied rather than as it is academically understood.
Employee Engagement Defined Gallup defines engaged employees as those who are involved in, enthusiastic about and committed to their work and workplace.3 Aon Hewitt defines engaged employees as those who are passionate, enthusiastic, devoted, immersed fully, driven, focused and concentrate intensely to complete their task.4 Hay Group on the other hand defines employee engagement as ‘a result achieved by stimulating employees’ enthusiasm for their work and directing it toward organizational success’.5 Finally, PWC defines employee engagement as the extent to which employees are motivated to contribute to business success and are willing to apply discretionary effort to accomplish tasks important to the achievement of business goals.6
www.talenpac.com
2
The Case for Passion
Commitment and Enthusiasm While each firm defines employee engagement in their own unique way, they all seem to agree that commitment and enthusiasm are common traits of an engaged employee. Our research also indicated that the definition of employee engagement has evolved over the last few decades to accommodate new insight and the changing talent market. This warranted a study into the origins of employee engagement.
The Origins of Employee Engagement Employee engagement was first introduced to the world in 1990 by William Kahn in his seminal article titled “Psychological Conditions of Personal Engagement and Disengagement at Work”. Little academic research has gone into understanding the pre-employee engagement era but experts seem to agree that before the rise of employee engagement there was employee satisfaction. Satisfaction was concerned about employee happiness and this was largely measured by how employees felt about the way they were being treated at work. For instance, were they being paid fair wages, was the working environment conducive, did they enjoy a healthy work/life balance and was there diversity and inclusion at the workplace? Employee satisfaction worked well during the era of industrialization where employees were hired to do as instructed (i.e. execute specific technical tasks). Then came the knowledge economy and with it organizations hired employees to create and implement solutions (i.e. take initiative, creatively problem solve and drive change). Employers quickly realized that the best employees in the knowledge economy weren’t just committed to work, they were enthusiastic about work. This, along with increasing thought leadership on the topic of employee involvement at work gave birth to the idea that employees should be passionate about work. Passion was naturally combined with satisfaction and this new hybrid was called employee engagement. Hence, today when we ask if an employee is engaged, we’re essentially asking two questions: 1. Is the employee satisfied at work? 2. Is the employee passionate about work?
Engagement is
Satisfaction + Passion www.talenpac.com
3
The Case for Passion
Employee Engagement Drivers Our research found that a wide variety of terminology has been used to define engagement drivers. While some frameworks focus on just a few core factors, others focus on many. Below is a list of all the drivers that have been identified by global HR advisory firms who are driving the employee engagement agenda. Where suitable we have grouped drivers for convenience. • • • • • • • • • •
Meaningful Work / Job Fit Leadership (Connectedness / Clarity / Consistency) Career Growth / Learning Opportunities Compensation, Rewards & Recognition Autonomy / Empowerment Employer Brand Work Life Balance Fairness / Job Security / Diversity Customer Orientation & Quality Culture / Collaboration / Connectedness to Colleagues
www.talenpac.com
4 Photo by Wayne Bishop on Unsplash
88% of employees are not passionate at work.
The Case for Passion
As reported by Deloitte in their 2014 article titled Passion at Work
Shining a Spotlight on Passion We believe that by combining satisfaction and passion, employee engagement surveys have incorrectly reported the respective levels of satisfaction and passion across the globe. We suspect a detailed analysis of each element will proof employee satisfaction in most companies is higher than reported while employee passion is worrying low. Our assertions are based on our observations of a changing talent landscape.
Employee Satisfaction is the Status Quo Today’s talent market is employee driven which essentially means employees get to choose where they want to work. This shift in power from the employer to employee has forced employers to become better attuned to drivers of satisfaction. We have seen the rise of employee satisfaction through fairer compensation packages, increasing employee rights and better working environments.
Passion: The New Battle Ground for Talent While the focus on employee satisfaction increases, the opportunity to be passionate about work remains a difficult variable to address. The rise of the Gen Y workforce has in many ways applied additional pressure on the need for passion at work. We believe the convergence of a knowledge economy that requires passionate workers and Gen Y employees who desire to be passionate about work justifies that our conversations about employee engagement be focused on the element of employee passion.
Defining the Passionate Employee Loves Work
Takes Ownership
Demonstrates Grit
Genuinely enjoys the job or industry. Is self-motivated to study their subject matter.
Treats work goals as personal goals. Takes responsibility for results.
Committed, especially in tough times. Demonstrates tenacity and never gives up.
www.talenpac.com
5
The Case for Passion
What Specifically Drives Passion? www.talenpac.com
6 Photo by Carson Arias on Unsplash
The Case for Passion
According to the Experts The subject of employee passion has been studied extensively over the past few years. Here’s what the experts are saying.
Dan Ariely Behavioral Economist, Best Selling Author Dan Ariely studies what motivates us and presents evidence that we thrive at work when we have a sense of purpose and when we feel like we’re making progress.
Watch his TED Talk
Daniel Pink New York Times Best Selling Author Daniel Pink’s research proves that employees are motivated when they have autonomy at work, the opportunity for mastery and when they feel a sense of purpose at work.
Watch his TED Talk
Simon Sinek New York Times Best Selling Author Simon Sinek argues that great leaders inspire action by articulating a clear ‘why’ (purpose) for others to rally around. His TED Talk is one of the most watched in history.
Watch his TED Talk
www.talenpac.com
7
The Case for Passion
Purpose Time and again, a sense of purpose has been identified as a core driver behind passionate employees. Purpose is essentially the answer to a simple question, ‘Why work?’ Passionate employees have a compelling reason to work. They consider their work as an opportunity to make progress towards achieving a meaningful outcome. In other words, passionate employees feel that their work is in service of attaining a goal they care about. The first step towards understanding what drives purpose is to appreciate that purpose if dynamic. An individual’s purpose changes over time and is driven by multiple factors which constantly change. At Talenpac, believe employees find purpose at work through four factors.
The Purpose Factors Money
Status
Compensation, Benefits, Bonuses At the very basic level, employees find purpose when their work supports their financial needs.
Job Title, Awards, Public Recognition Work offers employees social standing. The incremental nature of status gives employees purpose at work.
Growth
Impact
Learning and Development, Promotion There is an inherent desire to better ourselves. Employees look to their jobs to offer them the opportunity to grow.
Value for Customer, Social Impact Increasingly, employees expect their work to make a difference in the world. This is especially true with Millennials.
Purpose is Dynamic. The mix of factors that gives someone purpose today might not be the same tomorrow.
www.talenpac.com
8 Photo by RKTKN on Unsplash
The Case for Passion
Developing Passionate Employees If passion is driven by purpose and purpose is the dynamic combination of 4 factors, the journey towards developing passionate employees requires that the organization helps employees find a sense of purpose at work. To start with, employers need to articulate: • • • •
A clear rewards structure that is fair, transparent and motivating A culture where employees are recognized formally and informally Opportunities for learning, progression and overall growth How the organization positively impacts its customers and the world
In many situations, organizations have the above factors well defined. The hurdle has been in communicating and aligning employees to these factors. This is where the real challenge lies and tackling it requires that organizations nurture a unique cohort of Purpose-Driven Leaders.
Purpose-Driven Leaders A unique type of leader who helps employees to: 1. Understand their personal source of purpose 2. Connect their source of purpose to the opportunities available at work 3. Continuously re-align their personal purpose to the opportunities at work While Purpose-Driven Leadership requires a mastery of certain skills it also requires the adoption of a certain mindset. It requires for leaders to step away from the more functional, task-oriented manager-employee relationship. Instead, it suggests that leaders connect with their employees on a more personal and emotional level. This requires trust building and involves a significant investment of time and energy.
www.talenpac.com
9
The Case for Passion
Conclusion Our study of employee engagement and its drivers highlights the value of focusing on developing engaged employees who are not just satisfied at work but who are passionate about work. We believe that by blending satisfaction and passion, our conversations about employee engagement ignores the worryingly low levels of passion in today’s workforce. Further research into what drives passionate employees revealed that passion is driven by purpose which we claim is dynamic and always changing. Understanding what drives passion should empower organizations to clearly articulate how their employees can find purpose at work. However, this is merely the first step an organization needs to take. Developing passionate employees will require organizations to develop a new cohort of leaders we call Purpose Driven Leaders. This unique type of leadership demands that leaders adopt a mindset which prioritizes trust-based relationships with employees over tasked-based relationship. It is a shift in leadership posture that demands a commitment of time and energy towards developing passionate, high performing employees. This paper is merely a starting point to have more in-depth conversations about the growing passion gap in today’s workforce. The elusive nature of passion will continue to challenge our understanding of it but the increasingly competitive talent market demands we start engaging with the topic of passion more meaningfully.
www.talenpac.com
10
The Case for Passion
Endnotes 1. Annamarie Mann and Jim Harter, The Worldwide Employee Engagement Crisis, Gallup, January 7, 2016, http://www.gallup.com/businessjournal/188033/worldwide-employee-engagementcrisis.aspx?version=print 2. 2016 Trends in Global Employee Engagement, Aon Hewitt, 2016, http://www.aon.com/ecuador/attachments/Engagement2016.pdf 3. This definition was found on Gallup Daily: US Employee Engagement, http://www.gallup.com/poll/180404/gallup-daily-employee-engagement.aspx 4. This definition was extracted from page 5, Engagement 2.0, Aon Hewitt, 2010, http://www.aon.com/attachments/engagement_2%200_oct2010.pdf 5. This definition was found on Hay Group’s website, http://www.haygroup.com/us/services/index.aspx?id=1742 6. This definition was found on PWC’s Website, April 3, 2016, https://www.pwc.com/mt/en/pwcmalta-press-room/pwc-2015-employee-engagement-landscape-study-championing-greatnessor-capturing-mediocrity.html
Employee Engagement Drivers were collated from 1. 2017 Trends in Global Employee Engagement, Aon Hewitt, 2017, http://www.aon.com/engagement17/ 2. Dr. Drea Zigarmi, Dr. Kim Nimon, Dobie Houson, David Witt and Jim Diehl, From Engagement to Work Passion, The Ken Blanchard Companies, 2009 3. Junhui Wang, The Antecedents of Employee Engagement: A Comparative Analysis between Finland and Asia, Aalto University School of Business, Oct 2016, https://aaltodoc.aalto.fi/bitstream/handle/123456789/24554/master_Wang_Junhui_2016.pdf?se quence=1
www.talenpac.com
11
The Case for Passion
Contacts For more information on this paper or about Talenpac, please contact: Navin Muruga Managing Director Talenpac PLT [email protected] +6 012 307 2432
About Talenpac Talenpac is a boutique HR advisory firm. We help organizations develop passionate high performing employees through customized consulting solutions and high impact workshops.
Copyright © 2017 Talenpac PLT. All rights reserved.
www.talenpac.com
12
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