Pay might not be everything when it comes to being happy at work – but it is a key factor, says Douglas White
It is well understood that work can transform lives. Paid employment allows us to purchase the goods and services we need to live, and if our work is also fulfilling then it can provide a sense of purpose, social connections and a clear role in society. Our working identities and wider wellbeing are closely intertwined, but what happens if there is a breakdown in the system?
The Carnegie UK Trust recently asked Ipsos MORI to undertake a major number-crunching exercise on a selection of UK datasets, to try to measure a range of factors that might comprise a fulfilling working life. We wanted to better understand the inequalities in the labour market, across the sectors and regions of the UK economy – who has access to fulfilling work, and who is missing out?
What we found is that there is no simple formula for fulfilling work. Fundamentally, if pay and hours are not sufficient for an acceptable standard of living, it’s unlikely someone will be happy in their work – even if they find other elements of the job fulfilling.
However, the way in which different measures of ‘fulfilling work’ interact and sometimes contradict each other provides both challenges and opportunities for HR professionals. For example, the data suggests that employees of SMEs were more satisfied with the training they received at work, despite receiving less training, on average, than workers in large private or public sector organisations. None of the sectors where the data indicated a lower than average level of overall work fulfilment – including transport and storage, public administration and defence – are particularly low paid.
The flat lining of wage levels and the rise in ‘insecure’ working since the recession are threatening to undermine the principle of work as a route out of poverty and a social good. Work should improve wellbeing rather than undermine it. But today six million people experiencing poverty in the UK live in a working household. Job insecurity is becoming the new normal for many people.
Over the last decade, we have seen an increase in low-paid jobs and self-employment where employment rights are limited. Of the 1.7 million people in the UK on temporary contracts, a third admit to taking on a temporary role only because a permanent one was not available. Job insecurity is a prominent feature among those experiencing lower levels of job satisfaction, with temporary staff also much less likely to be offered training, which could allow them to progress in the workplace. Overall, 17 per cent of UK workers worry that their job is not secure.
There is growing business consensus about the competitive advantage and moral imperative of a fair work agenda, which delivers a living wage and more secure forms of working. Living wage employers report a 25 per cent drop in absenteeism and 80 per cent believe they have seen an improvement in employees’ quality of work. However, this doesn’t mean implementation is a fast and easy fix.
HR professionals should therefore take the opportunity to advocate for a bouquet of measures that could increase employee engagement and retention among the workforce. And indeed, some of the surprising findings in our research emphasise the importance of meaningful employee engagement.
Rather than assuming ‘what works’, there is a need for honest conversations within organisations to understand what matters to the diverse groups within a workforce at different stages of their careers. What package of reward or opportunity for progression is deliverable within the business and could help companies to attract, retain and get the most out of employees?
These are some of the questions we’ll be aiming to ask and answer as we move into 2017.
Douglas White is head of advocacy at Carnegie UK Trust