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61% Have A Transactional Work Relationship — Here's How To Change That

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As we get closer to the end of the year, it can feel like a frantic race to finish work, prepare for the holidays and position ourselves for a healthier and happier new year. Yet, many employees dread returning to the same job after the holidays because too many workplaces are broken and not focused on upstream tactics to increase fulfillment and prevent burnout.

Dan Schawbel, a three-time NY Times Bestselling Author: Back to Human, Promote Yourself & Me 2.0, recently reached out to share his latest research in partnership with The Workforce Institute at UKG. Our conversation explores the following two data findings providing reflections, actionable advice and insights.

  • Most people have a transactional relationship with work, as 61% admit they go to work to collect a paycheck, "clock out," and go home.
  • The pandemic has caused 89% of employees to realize there are more important things in life than work.

Rachel Montañez: In your work, you’ve led over 65 research studies. What three pieces of advice would you share to help companies conduct better research?

Dan Schawbel: The first advice I would offer companies who want to increase employee engagement and satisfaction is to collect data through surveys, focus groups and one-on-one conversations with employees to understand their needs so that you can meet them. Secondly, respect an employee's desire to manage their work lives, so they don't burn out by having to respond to business messages on nights and weekends. Thirdly, build a culture of well-being and empathy, so employees feel comfortable sharing their opinions and feedback with leadership.

Montañez: What are some of the most challenging mindset shifts leaders need to make the relationship less transactional?

Schawbel: Leaders need to think of people as humans first instead of labor, resources, workers or employees. If they solve human needs first, they unlock workplace potential and performance. Leaders must also understand that a sense of purpose and fulfillment is what employees want, not just a paycheck, so they need to communicate how their work is impacting others more regularly.

Montañez: What are some of the best ways you've seen companies intervene to ensure employees develop a sense of worth and identity?

Schawbel: The best way to help employees develop a sense of worth and identity outside of their work is to make their work meaningful and important inside of work. By giving employees more impactful work and ensuring that their voices are taken seriously, people feel better about their status not just at work but in their life outside of work.

Montañez:Where are we failing to invest in an employee's career? Are there trends in demographics or any other common threads?

Schawbel: In my research over the past 15 years, I've found that the younger someone is, the more willing they are to learn and the more they seek career development opportunities. As people age, they are less open to new skills because they are more comfortable and experienced in their roles. Also, most job hopping happens when workers are younger because they are trying to figure out what they want, and the best way to do that is to have multiple job experiences. Companies are the new colleges and should offer post-secondary education, including on-the-job training and a curriculum tailored to their roles. We live in the skills economy, and since the world is constantly changing, professionals must learn new skills outside their comfort zone to stay relevant and employable long-term.

Montañez: What's a commonly overlooked consideration for fostering a socially connected workforce?

Schawbel: A commonly overlooked consideration is that some people are more social than others, who are more private and introverted. Not everyone wants to do happy hours with their colleagues and shouldn't be forced to if they are uncomfortable. Of course, avoiding social connections with your colleagues could hurt your chance at a raise or promotion, but some people are fine with that. That's why I believe the Metaverse and VR can be a solution to engaging those who are normally less social and extroverted. Technology levels the playing field and brings people together in new ways.

Montañez: How can we make performance reviews seem less transactional?

Schawbel: Most companies still offer annual performance reviews where employees are evaluated with a number of 1 through 5, with 5 being the best grade and most likely leading to a promotion or bonus. The problem is that no one likes doing them, and they can come off as transactional. That's why I suggest check-in conversations are held throughout the year so that when employees are evaluated, there are no surprises, and they are able to improve along the way.

Montañez: How can leaders empower their teams to grow strong interpersonal skills?

Schawbel: Leaders who want to help their teams with their interpersonal skills should share responsibility and let them lead projects and meetings. They should also create a safe space where their teams' psychological needs are met.

Montañez: What are you expecting to see more of in 2023?

Schawbel: The three biggest trends I'm focused on for 2023 are the well-being imperative, the battle over remote work and the labor shortage. It just so happens that all three of these trends are connected as well. For instance, since it's hard for companies to fill certain positions, they are more likely to offer benefits, including remote work. Also, one of the side effects of remote work is that employees spend more time outside the typical work hours, which leads to burnout. And, when you combine that with the effects of living under pandemic conditions for three years, we'll see companies take well-being even more seriously.

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