Business Performance, Employee Fulfilment, and Leadership Practices

Over the past several years, many organisations have focused on reigning in key financial indicators. By searching the global labour market for the most efficient resources, creating process improvements, and using technology to speed up operations, companies have improved financial performance and created competitive advantages. But downsizing, outsourcing, and off-shoring will soon reach upper limits on their ability to improve organisational performance. In addition, these actions are available to all competitors – making them, at best, temporary sources of competitive advantage.

So, where will the next force for performance improvement come from? Where can organisations find sources of sustainable (not temporary) competitive advantage? In a series of 14 individual studies, Wilson Learning Worldwide has found one answer – Fulfilment Satisfaction. Our research has repeatedly shown that there is a direct correlation between employee Fulfilment Satisfaction and job performance. These studies have shown that, on average, 39% of the workforce bottom line can be attributed to employee Fulfilment Satisfaction.

This research could not be more timely. A Gallup poll showed that 55% of employees say they are not engaged in their work, and turnover among executives and managers is at an all-time high (SHRM research). Furthermore, our research has clarified the greatest source of employee fulfilment. The single most important factor in creating a sense of fulfilment is the leadership skills of an employee’s manager. This finding has significant implications for the importance of the role of the manager and how effective he or she is in creating Fulfilment Satisfaction.

Redefining Satisfaction

Employee satisfaction means different things to different people. While we intuitively believe that employee satisfaction is necessary for high performance, studies in the past have not supported this belief. Several years ago, Wilson Learning Worldwide began asking why, and concluded that the problem was in the definition of satisfaction.

The dictionary defines satisfaction as “gratification of an appetite and pleasure.” In general, people most often associate satisfaction with happiness and comfort. It is likely that in most of the previous studies, people responded to the question “Are you satisfied?” by interpreting the question as “Are you comfortable in your work? Do you feel secure and content?” While this may not have been the intent of the question, this understanding of the question does suggest why organisational performance has not been linked statistically to employee satisfaction. We don’t often associate high performance with contentment, security, and comfort.

However, we do tend to associate high performance with enjoyment of the work, fulfilment in accomplishment, and effective work relationships. Therefore, the researchers at Wilson Learning Worldwide decided to explore a new definition of satisfaction, one that taps the elements of fulfilment, empowerment, and engagement. In the process, we have identified a powerful tool for creating a high-performance, high-fulfilment work environment.

Fulfilment Satisfaction

We call our approach “Fulfilment Satisfaction” (or, just “fulfilment”) to differentiate it from the traditional definition of satisfaction (that is, satisfaction as being comfortable). It is our belief that, if you can identify and measure a more meaningful definition of satisfaction, you will find a closer causal relationship to organisational performance. We began our research by identifying the principal elements of fulfilment, empowerment, and engagement. We identified five:

• Satisfaction with the job: To be fulfilled, people need to value their day-to-day work activities. People need to have a sense of accomplishment or pleasure from the work itself.
• Satisfaction with relationships: People also need to value the relationships they have on the job to be fulfilled. People want to like working with their coworkers. While people know that conflicts will arise, they want to be assured that the focus is not on the interpersonal differences, but the task differences.
• Satisfaction with leadership: If people do not think that they are being managed or led effectively, it is hard to have fulfilment in the work.
• Knowing that others are satisfied in their work: One of the key findings from our research is the importance of the open expression of fulfilment in the workplace. Knowing that others gain fulfilment in their work is a powerful motivator.
• Knowing that others are satisfied with the organisation’s leadership: It is difficult to be fulfilled if there is not open trust and support for leadership. Equally, when that open trust and support is present, it helps create an environment where people feel empowered and willing to give their full engagement.

This combination of both personal satisfaction and communication of group satisfaction is a critical distinction between Fulfilment Satisfaction and traditional definitions of satisfaction. In today’s work environment, few objectives are met solely through one individual’s efforts. In addition, as people work together in group settings, they are likely to influence each other’s attitudes and beliefs. Because of the roles that teamwork and joint effort play in organisational success today, tapping into these elements seems critical. One might feel personally satisfied, but not perceive satisfaction in others. As a result, the overall sense of fulfilment that one feels will be diminished. Organisations that encourage open communication, where employees discuss their level of satisfaction, promotes high performance.

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