The old adage that a happy worker is a good worker is nothing new. However, the advantage to businesses of having a happy and engaged workforce, and the things that affect this the most, are becoming a key focus like never before (cue obligatory reference to Google’s chief happiness officer).
Looking back, the perception of what employees want from an employer has inevitably changed. A few decades ago, offering a steady wage, a job for life and good working conditions would be perceived as being enough. Today, there is much greater recognition of how complex and varied individual’s needs are, and how a one-size-fits-all approach will never be effective.
Of course, HR and reward play an intrinsic role in achieving this holy grail, which, let’s not forget, is ultimately good for business. Take investment in colleague wellbeing as a prime example. From providing direct financial support such as hardship grants, to automatic monthly personal savings via payroll, through to enhanced family-friendly policies, organisations are playing an increasingly paternal role. Consider this alongside the prominence of flexible and hybrid working, and its evident that, when it comes to employee engagement, the role of pay and benefits in the traditional sense has never been further removed.
But you cannot buy happiness, and effective organisations in this space tend to be known for their positive culture. Being all encompassing, multi-faceted and influenced by beliefs and values, culture cannot solely be dictated by HR and reward; popular employee engagement measures such as a sense of belonging, open communication, and effective leadership remind us of this. Therefore, for reward in particular to be effective in improving employee engagement, we need to focus on the role it plays alongside HR and the wider business, and both understand and embrace some of the enduring employee engagement fundamentals such as colleague voice, and the critical role of leadership and line management.
Neil Goodwin is head of reward at Wickes