Unhappy employees are reportedly costing the world economy “a whopping $8.9 trillion annually” according to a report commissioned by Gallup and reported on by Fox Business. The number stems from the over 75% of the global workforce that “is either not engaged or actively disengaged at work.”
As a result, employment analysts say that companies are now building up an “emotional salary” to increase employee engagement and productivity. “Emotional salary” includes the non-monetary aspects of a job, such as culture, career and work-life balance according to Caitlin Nobes, head of workforce research, Achievers Workforce Institute, who is based in Toronto, Canada.
“An employee’s emotional salary is the measure of whether they feel rewarded beyond base pay,” said Nobes. “Emotional salary is completely separate from monetary compensation, which is needed to meet foundational needs for safety and security,” she also said.
“Employees who feel their efforts and work go unnoticed are in turn more likely to underperform, disengage and eventually quit,” said Nobes. Another important component of employee engagement is recognition. “Something as simple as recognition, which is an investment in emotional salary, can shift this narrative,” Nobes added.
Nobes told FOX Business, “In recent years, inflation and cost-of-living increases have caused 71% of people to say they either struggle to pay their bills or must budget carefully to meet their needs.”
Not surprisingly, these workers identify compensation as their No. 1 reason to job hunt in 2024, she said. However, those who can live comfortably won’t be motivated by higher pay, she said. Career progression and workplace flexibility are higher priorities than pay for these employees.
“This insight is particularly helpful for industries that already pay high salaries (like finance, technology, and life sciences) who are seeing rampant disengagement rates and skills shortages across their work forces,” Nobes also said.
“Let the employer know this during the interview process and give tangible examples of what this looks like — health/fitness stipend, flexible PTO, regular work events and more.”