By broadening their definition of productivity beyond conventional metrics, organisations can nurture a happier and healthier workforce to achieve better overall performance
Much of my research revolves around designing and leading teams to pursue the dual objectives of wealth and well-being.
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Traditional productivity metrics are used by many companies to assess the value that employees bring to the organisation. These tangible, quantifiable and results-based measurements include work quality and output, efficiency and the number of projects completed on time and on budget. Some managers rely solely on these metrics to determine promotions, salary increases and performance bonuses.
However, some companies and managers may take this too far. It becomes problematic when the number of hours an employee works or is available is seen as a measure of productivity and, therefore, their value to the firm. Take the recent example of Baidu’s former head of public relations Qu Jing. After videos of her glorifying an always-on, work-till-you-drop culture – including statements such as “don’t expect weekends off” and “keep your phone on 24 hours a day, always ready to respond” – were made public, she faced intense backlash, with many describing her management style as toxic. Qu eventually issued a public apology and was reportedly fired by the Chinese tech giant.
Qu seems to have failed to understand that employee well-being is a critical – but sometimes overlooked – factor that drives both productivity and performance. To truly reap the benefits of an engaged and motivated workforce, organisations need to broaden their definition of productivity to account for their employees’ mental and physical health.
Much of my research revolves around designing and leading teams to pursue the dual objectives of wealth and well-being. The idea behind this is to combine instrumental goals – such as making money for the company – with the physical and psychological well-being of the people within the organisation.
This is how some of the best companies and leaders are rethinking productivity: They are not focusing on either wealth or well-being, but both wealth and well-being. There is a certain logic behind this. Increasingly, the performance of employees, and hence the organisation, depends on individuals engaging fully with one another and their tasks at work. Focusing on traditional productivity metrics alone is detrimental because it can come at the expense of employee well-being. And if employees struggle on this front, it will affect their output and performance.
[This article is republished courtesy of INSEAD Knowledge, the portal to the latest business insights and views of The Business School of the World. Copyright INSEAD 2024]