Special feature: The case for ok-nomics

The case for Ok-nomics

Now is the time for organisations to take a closer look at their culture and start creating a state of Ok-nomics. Skills Consulting Group’s Jane Kennelly explains more.

Let’s face it, New Zealand continues to experience uncertainty as it transitions back into a country that is ‘open for business’. The change and upheaval we have experienced is unlikely to go away quickly and perhaps not at all. Forget the new normal, we need to focus on the next normal; and, to get it working, an important factor will be wellbeing.

In the second year of Skills Consulting Group’s Work Wellbeing research, it’s clear that measuring the wellbeing of workers is still a definite indicator and predictor of an organisation’s success. Businesses that are embracing wellbeing practices are not only seeing better business results, but they are positively affecting the lives of their people, which in turn creates better outcomes for New Zealand as a whole.

However, this year’s Work Wellbeing research highlighted warning signs. Cracks are starting to appear, and, if these aren’t addressed, it could affect staff morale, add fuel to the fire of the so-called ‘great resignation’, and ultimately affect the financial success of businesses. It really is a case of Ok-nomics.

“Ok-nomics is a concept that states that if staff feel valued, rewarded, and listened to, they will create a culture of success. Staff who don’t will have the opposite effect,” says Jude Manuel, Wellbeing Business Development Manager at Skills Consulting.

So, what did the research say?

An important out-take of this year’s research was the relationship between satisfaction, motivation, effectiveness and retention, and the effect of wellbeing initiatives on all three.

Workplace satisfaction was 10 per cent higher for those who believed their organisation was committed to developing a wellbeing culture. In turn, people who were satisfied were massively more motivated and effective in their role and less likely to leave.

Burnout at work on the rise

It’s not a new headline, in fact, the media have been talking about it ever since the beginning of the pandemic. And the facts speak for themselves. A growing number of Kiwi workers are on the edge of burnout, with the research saying 37 per cent of those interviewed have either experienced burnout themselves or have worked with someone who has.

Women are more likely than men to experience burnout – 41 per cent of females surveyed said they had – while government, healthcare workers and employees in organisations with more than 500 staff members are at significantly higher risk of suffering from it.

Characterised by exhaustion, cynicism and feelings of reduced professional ability, burnout can result in a drop in productivity and the growth of negativity that can spread throughout a team and organisation quickly.

Wellbeing solutions – one size does not fit all

There is no magic bullet, and, in fact, a one-size-fits-all wellbeing solution doesn’t exist. Why? Because every business has different issues and employees have different needs.

The Skills Consulting Group Work Wellbeing research showed that inequities exist for certain people from different cultural, gender and age backgrounds.

Although the needs of men and women were not substantially different, women had more complex requirements in terms of workplace wellbeing. For women, it’s less about remuneration (although that’s still important) and more about work– life balance, flexibility and mental health support.

Millennials want their workplace to acknowledge they have a life outside work and to support them to engage with non-work commitments. They want emotionally intelligent workplaces offering a mental health focus, and support time away from work as a tool for being more productive. They also want to be trusted, with less micro-managing and more opportunity to set their own pace and schedule.

Māori employees crave a whānau-like team where they are acknowledged as individuals and given help with work as well as praise for doing things well. This group also feel they could be paid more competitively.

Asian employees (excluding Indians) feel better pay, and being paid on time are high priorities. As a group, they say they haven’t experienced this cohesively, leading to feeling undervalued. However, Asian employees say they also want flexible working arrangements and less micro-managing. Like millennials, they want increased trust from managers and to feel listened to.

Managers a vital part of the equation

Skills Consulting Group’s research did point towards potential solutions.

“Clear communication, flexible working, and willingness from managers to get their hands dirty when things were busy were all cited as critical to a wellbeing culture,” says Jude.

“Managers play a critical role in being supportive and identifying issues, however, they need upskilling on how to do this. They aren’t psychologists, and they do need to know how to respond. So this means supporting managers with a structured wellbeing programme and giving them the tools they need to be the ‘first responders’ for their people.”

Conclusion

The research supports what we already know: getting your work wellbeing strategy right is critical to your people and your business. And this means identifying the issues the business is facing and addressing the needs of your people.

Doing it well will result in more motivated and productive employees, lower staff turnover and improved general happiness. This leads to a healthier profit, less recruitment expenditure and a business that is contributing to the economic wellbeing ecosystem of Aotearoa.

The principle of Ok-nomics has come home to roost, investing in wellbeing makes financial sense, and it’s time to take it seriously.

Jane Kennelly brings over 33 years of HR consulting experience to her role as General Manager of Wellbeing at Skills Consulting Group. Jane was involved with WorkChoice

Trust for 22 years and was Chair for eight of those years. She is also the founder and trustee of the Fantail Network, a charitable trust that supports, connects and enables women in business. With expertise in many areas, Jane has created numerous community and wellbeing initiatives including the ‘NZ Top Office Dog of the Year’, designed to support positive mental health in the workplace.