Want a Thriving Business? Focus on Job Quality.

Why should companies care about job quality?

Job quality plays a pivotal role in the “Social” pillar of the ESG (Environmental, Social, and Governance) umbrella. It's essential for companies aiming to attract and retain top talent, drive innovation, and achieve long-term success. Your workforce truly forms the bedrock of your business. And businesses can’t thrive without first ensuring happy, healthy and engaged employees. 

Employee happiness is key to profitability and productivity

Investing in job quality leads to increased employee satisfaction and well-being. Workers are more productive and innovative when they feel valued and supported in their roles. They’re also more deeply committed to the organization's mission. To quote Tiffani Bova, the Global Growth & Innovation Leader at Salesforce, “The fastest way to get your customers to love your brand is to get employees to love their jobs.” Put simply: a highly engaged workforce translates to accelerated revenue growth.

• Organizations in the top 25% of employee experience scores enjoy double the return on sales and nearly triple the return on assets compared to those in the bottom quartile. (IBM)
• Companies with the highest rates of employee engagement are 23% more profitable. (Gallup)
• Happy employees are up to 20% more productive than their unhappy counterparts (Social Market Foundation)
• Employees on high-trust teams report 74% less stress, 106% more energy at work, 50% higher productivity, 76% more engagement, 29% more satisfaction with their lives, and 40% less burnout than those at low-trust companies. (Harvard Business Review) 

Positive work environments are linked to long-term business success

Job quality is also closely linked to employee retention. Companies that prioritize job quality experience lower turnover rates, reducing recruitment and training costs. A good job goes beyond the basic requirements; it also fulfills the higher aspirations of employees. Think Maslow’s hierarchy of needs and the importance of purpose in driving action. 

By cultivating a positive work environment that nurtures employees' desires for career advancement, empowerment, and meaningful work, organizations create a sense of loyalty and commitment among their workforce. In turn, these businesses reap the benefits: 

• A strong sense of belonging in the workplace boosts job performance by an impressive 56%, decreases the risk of turnover by 50%, and reduces sick days by 75%. (Harvard Business Review) 
• Employees who feel confident in their growth path are 3.3x more likely to remain at their current company for the next 12 months. (Deloitte)
• Employees who report a good working relationship with their manager are 3.4x more likely to remain at their current company for the next 12 months.  (Deloitte)

Low-quality jobs cost more than just money

As great as the benefits above sound, the opposite is also true. Job quality is deeply intertwined with the employee experience. And unhappy, unhealthy employees will inevitably cast a shadow on metrics like absenteeism, performance, customer experience, work quality, and profit. 

• Non-engaged or actively disengaged employees cost the global economy $7.8 trillion in lost productivity last year: a whopping 11% of global GDP. (Gallup).
• Each disengaged employee costs their employer $3,400 to $10,000 in salary due to decreased productivity. (Gallup)
• 57% of workers are considering quitting their jobs for a more supportive environment. 70% of executives say they’re planning to leave for the same reason. (Deloitte)
• 23% of survey respondents say a lack of room for growth in their role negatively impacted their well-being. 35% of respondents want “ample opportunities to learn new things and develop skills.” (Deloitte)

At the end of the day, focusing on job quality demonstrates a company's dedication to social wellbeing. By offering equal opportunities for growth and development, promoting work-life integration, and fostering supportive management practices, organizations can make a significant difference in their workers’ quality of life—from physical and mental health, to one's ability to plan for the future, to feelings of inclusion and belonging. Quality jobs truly are a testament to an organization's commitment to fair labor practices and creating a positive social footprint.