How satisfied are your employees?

Identifying the groups who can make or break your organisation

New research from McKinsey notes that “more than half of employees report being relatively unproductive at work.”

The research is based on a survey of 16,366 workers in seven countries (including Australia) from November 2022 to January 2023. Six groups of employees were found, which probably means leaders cannot bring a one-size-fits-all approach to enhancing the employee experience. Rather, leaders need to apply different strategies to different groups to boost levels of satisfaction and commitment, performance, wellbeing, and, ultimately, retention and engagement.

In the report, the six employee groups are based on self-reported levels of satisfaction and engagement. Accompanying the description of each group are a number of suggested actions employers can take for enhancing employee satisfaction and performance. Interestingly, nearly two-thirds of the total cost to companies from disengagement is captured by the top six factors that are drivers of disengagement.

The factors, in order of most to least contribution to disengagement are:

1. Inadequate total compensation
2. Lack of meaningful work
3. Lack of workplace flexibility
4. Lack of career development and advancement
5. Unreliable and unsupportive people at work
6. Unsafe workplace environment

Following is a brief description of each employee group, along with its estimated percentage of the workforce in a typical organisation. The suggested actions you can take to enhance satisfaction and performance are described in the report.

1. The quitters: Headed for the door (or already gone)
   Around 10 per cent
   Not necessarily the lowest performers but may be some of the least satisfied, which can affect their performance.
   
2. The disruptors: Actively disengaged and likely to demoralise others
   Around 11 per cent
   Potential for the largest negative influence not necessarily because of their behaviour but because of how an organisation treats them. That is, “solid performers lost motivation if they feel that others who are not pulling their weight receive the same rewards.”
   
3. The mildly disengaged: Doing the bare minimum
   Around 32 per cent
   Neither satisfied nor actively disengaged. “Put little time and effort in to fulfil minimum job requirements but they are not proactive.” Leaders should not expect these workers to make sacrifices for the company over their personal lives.
   
4. The double-dippers: A grown phenomenon
   Around 5 per cent
   Full-time salaried workers who hold two or more jobs simultaneously. “Almost evenly split between those who are engaged and contributing and those who are disengaged and chipping away at an organisation’s collective efforts.”
   
5. The reliable and committed: Going above and beyond
   Around 38 per cent
   Represents the organisational core: reliable performers who execute on business-as-usual activities and will go above and beyond.
   
6. The thriving stars: Creating value and evaluating other
   Around 4 per cent
   Top talent who bring disproportionate value to the company and can have a highly positive impact. But, “this group’s status quo puts them at elevated risk of burnout from having a higher workload.” Also, they are more likely to flourish in hybrid and remote-working models than in the mostly in-person model.
   
   Reflect on this report. Does your workforce reflect similar characteristics and proportions? Remember, there are suggested strategies in the report for you to consider.