Understanding well-being at work

Addressing workplace satisfaction may help your organisation improve talent outcomes

In Fidelity’s Global Sentiment Survey, we asked workers how they feel about their work to evaluate their workplace satisfaction and well-being. In our research, we identified those who are satisfied in their job, describe the current state of their work as good or very good, and are not likely to leave their jobs in the next six months. We consider these employees to be doing “well at work” and those who do not meet these three criteria as “restless” in their jobs.

A majority are restless in their jobs and are at risk of leaving.

What we found in our research should send a signal to organisations that they have more to do if they want to improve talent outcomes. In a key finding, nearly three quarters of employees report feeling restless in their jobs (72%), while only 28% describe their current work as good or very good, describe themselves as very or extremely satisfied in their job and report that they are not likely to leave their company in the next six months.¹

How should employers react to such a lopsided finding? How can management teams right the scale, so to speak?

Addressing work-life balance and psychological needs of your workers may help improve this situation.

It goes without saying that employers need to understand the needs of their workforce in order to influence and improve talent outcomes. A critical component to this challenge is to recognise how work/life balance and psychological needs play a key role in your workers’ satisfaction, and how these distinguish those who are satisfied at work from those who are restless.

Understand the tangibles and the intangibles.

Your workplace benefits offering, for example, supports your employees at various stages of their lives and with a variety of needs. Programs and support typically run the gamut from tangible benefits to intangible benefits.

Tangible benefits are fairly straightforward and evident. Three components include various forms of compensation (like a competitive base, an attractive bonus and an equity offering), and core benefits such as health insurance and a retirement plan. Other tangible examples may also include targeted benefits such as retiree medical, paid parental leave, childcare benefits, tuition support or other perks.

Intangible benefits may not be as obvious but are just as important. Work-life balance and psychological support are the two components here. Work/life balance includes paid time off, stability and job security, paid sick leave and a manageable workload. Psychological needs include such things as meaningful work; being able to use one’s skills, having a positive relationship with a manager and with colleagues; opportunities for advancement and learning; feeling challenged, a positive workplace culture, and a sense of autonomy, inclusion, and community.

Why is this important? Employees who are satisfied at work are more likely to value intangible benefits such as work/life balance and meeting their psychological needs at work.

Up to 85% of employees who are satisfied/feeling well at work rated meaningful work, their ability to use their skills, and a positive relationship with colleagues and their manager as important. In contrast, a lower number, up to 78%, of restless employees deemed these areas as important. Similarly, up to 87% of well at work employees rated paid time off and work/life balance as important, whereas approximately 79% of restless employees rate these as important.²

Employers should focus on meeting employees’ core psychological needs, which Fidelity categorizes as autonomy, connection, competence and purpose.

1. Autonomy – Do they feel they have discretion in how they work and behave in your workplace?
2. Connection – Do your employees feel that they belong and are accepted and do they feel a sense of affiliation with others in your workplace?
3. Competence – Do your employees feel able to use their skills, and do they feel capable, and have opportunities to learn and grow?
4. Purpose – Do they feel a sense of meaning and alignment with your organisation’s purpose based on their personal goals and values?

Key takeaway

By identifying and understanding what’s different for employees who feel satisfied at work, employers can take action to help more workers feel that way. While the tangibles are a critical foundation, addressing the intangibles can promote a great employee experience and assist your organisation in improving talent outcomes.