Far too many companies believe that a cutthroat, pressure-cooker culture gets results. They think that the harder they crack that whip, the better people will perform.
Cutthroat business culture is so prevalent that it’s a cliché in our society, serving as the inspiration for countless TV shows and movies. The sad thing is that people relate to it on the screen because they’ve seen it firsthand.
But just because everybody seems to be doing it doesn’t mean it works; it just makes it easier to stick your head in the sand and ignore the consequences. But make no mistake: the costs associated with treating people poorly are real.
High-pressure, cutthroat organizations spend 50 percent more on healthcare for their employees than organizations with a more positive, supportive environment because 80 percent of workplace accidents are attributed to stress, as are 80 percent of doctor visits.
Cutthroat organizations are less productive because they experience significantly lower levels of employee engagement. Organizations with high numbers of disengaged employees have 40 percent lower earnings per share, are 18 percent less productive, and have 50 percent higher turnover.
If you’re leading a cutthroat workplace, it’s probably negatively affecting your employees’ health. If you aren’t yet motivated to take action, consider how the following hallmarks of cutthroat environments suck the life out of people.
1. They Overwork People
Nothing burns good employees out quite like overworking them. It’s so tempting to work your best people hard that leaders frequently fall into this trap. Overworking good employees often perplexes the worker. It makes them feel as if they’re being punished for a great performance.
Overworking employees is also counterproductive. New research from Stanford shows that productivity per hour declines sharply when the workweek exceeds 50 hours, and productivity drops off so much after 55 hours that employers don’t get anything out of the extra hours.
2. There’s No Empathy
Empathy matters. Do you really see your employees as people and care how they’re doing? Or are you only focused on how much work they churn out? More than half of people who leave their jobs do so because of their relationships with their bosses. Smart companies make certain that their managers know how to balance being professional with being human. These are the bosses who empathize with those going through hard times, yet still challenge people. Bosses who fail to really care will always have high turnover rates. It’s impossible to work for someone for eight-plus hours a day when you aren’t personally involved with them and don’t care about anything other than their production yield.
3. There’s No Recognition of Good Work
It’s easy to underestimate the power of a pat on the back, especially when it comes to top performers who are intrinsically motivated. Everyone likes kudos, none more so than those who work hard and give their all. Leaders need to communicate with their people to find out what makes them feel good. For some, it’s a raise, while for others, it may be public recognition. Then, they need to reward them for a job well done. With top performers, this will happen often if you’re doing it right.
4. There’s No Socializing and No Fun
Strong social connections are an integral part of a healthy workplace. People who have strong connections with their colleagues get sick less often, are less likely to become depressed, learn faster, remember more, and simply do a better job. People don’t give their all if they aren’t having fun, and fun is a major protector against burnout. The best companies to work for know the importance of letting employees loosen up a little. Google, for example, does just about everything it can to make work fun—free meals, bowling allies, and fitness classes, to name a few. The idea is simple: if work is fun, you’ll not only perform better, but you’ll stick around for longer hours and an even longer career.
5. Lots of Stupid Rules
Companies need to have rules. That’s a given. But they don’t have to be shortsighted and lazy attempts at creating order. Whether it’s an overzealous attendance policy or taking employees’ frequent flier miles, even a couple of such unnecessary rules can drive people crazy. When good employees feel as though big brother is watching, they’ll find someplace else to work.
6. No One Helps Anyone
There’s a big difference between delegating responsibility and abdicating it. A boss who abdicates responsibility thinks that it’s the employee’s problem and that they alone are responsible for solving it. However, research shows that managers who support their employees in tasks that they delegate produce better team players who are more willing to help others and are more committed to their jobs.
7. People Can’t Pursue Their Passions
Google mandates that employees spend at least 20 percent of their time doing “what they believe will benefit Google most.” While these passion projects make major contributions to marquee Google products, such as Gmail and AdSense, their biggest impact is in creating highly engaged Googlers. Talented employees are passionate; providing opportunities for them to pursue their passions improves their productivity and job satisfaction.
Unfortunately, many leaders want people to work within a little box, fearing that productivity will decline if they let people expand their focus and pursue their passions. This fear is unfounded. Studies have shown that people who are able to pursue their passions at work experience “flow, a euphoric state of mind that is five times more productive than the norm.
8. Leaders Don’t Listen
When employees feel that their managers are approachable, supportive, and willing to listen, performance improves. That feeling of connection leads to a willingness to experiment and take risks, which in turn, leads to better outcomes. On the other hand, if conversations between managers and employees never extend beyond TPS reports, and any attempts to ask questions or offer suggestions are rebuffed, the work environment is probably cutthroat.
So what should you do if you find yourself leading a cutthroat environment? I can’t answer that question for you. What I can do is tell you that the mental, physical, and financial consequences are real.