How a good work culture improves profitability
In the early 1940s, a curious thirty-five-year-old Jewish-American psychologist of Russian origins sought to understand what made life meaningful while being surrounded by people who came to America in pursuit of fame, wealth, power, and success.
The young man finally came up with a simple five-step concept that showed the different human needs. It has since gained prominence in school and business textbooks, TED talks, and psychology. That man was Abraham Maslow and the famous triangle is called Maslow’s Hierarchy of Needs.
The human needs according to Maslow are:
Basic or Physiological needs: Food, water, sleep, sex, homeostasis, and excretion.
Safety Needs: Security, order, and stability.
Love and Belonging: When individuals have taken care of themselves physically, they are ready to share themselves with others, such as with family and friends.
Self-Esteem: The fourth level is achieved when individuals feel comfortable with what they have accomplished. This is the “Esteem” level, the need to be competent and recognized, such as through status and level of success.
Self-Actualization: The last one occurs when individuals reach a state of harmony and understanding because they are engaged in achieving their full potential. Once a person has reached the self-actualization state, they focus on themselves and try to build their own image.
Maslow was proposing that while we do need material things to enjoy life, the pursuit of money alone isn’t sufficient. After a certain point, the desire for money is replaced with a longing for deeper connections, spirituality, and understanding of the self.
Putting it in a business context, for any business to succeed and retain its employees, especially in 2022, it’s no longer enough to pursue only profits.
Balancing capitalism with the higher psychological and physiological needs of their employees, taking responsibility for their actions, and working for the larger benefit of the planet and society alike, are what will separate forward-thinking companies from the more unimaginative ones.
The evidence for this is also clear from the current gig economy and a surge in self-made YouTube and Instagram business professionals and influencers, freelancers, as well as startup founders in India and globally. Today’s generation wants a strong sense of identity, authenticity, freedom, and connection — while desiring financial success. Fewer people want to work for a company that doesn’t align with their values.
It is, therefore, imperative that businesses start building a strong work culture that prioritizes things beyond their balance sheet and shareholder interests. In fact, these are also companies that will, undoubtedly, stay in business for the next 100 years while providing consistent returns to their investors.
The sooner leaders start to prioritize the well-being of all their stakeholders — not just immediate shareholders — the more progress they’ll see in the future.
Happy People + Nourished Planet = Higher Profits.
