A Management Anti-Fad That Works, According to Arthur Brooks in The Atlantic

New fads are constantly emerging in the world of management, but many fail to deliver on their promise of increased productivity. In an article for The Atlantic, Arthur Brooks argues that the key to a happier and more profitable workplace lies not in complex, new strategies, but in a simple, age-old idea: prioritizing employee happiness.

Brooks points out that happiness at work directly boosts productivity. He shares research from the investment-research firm Irrational Capital, which found that S&P 500 companies in the top 20% for employee happiness outperformed those in the bottom 20% in stock performance by nearly six percentage points over an 11-year period. In contrast, companies with high marks for pay and benefits only outperformed the bottom 20% by two percentage points.

Based on its research, Irrational Capital identified six key factors that contribute to employee happiness and, in turn, a company’s performance. Brooks translates these into a six-point guide for managers:

• Listen to your team. Encourage and listen to feedback and new ideas.

  
  

• Be clear and honest. Always communicate with clarity and truthfulness, especially during uncertain times.

  
  

• Cut the red tape. Minimize bureaucracy and unnecessary meetings.

  
  

• Support growth. Create a culture of learning and development through mentoring and training.

  
  

• Foster friendships. Encourage a culture where employees can form genuine friendships with one another.

  
  

• Live up to your mission. Ensure the company’s internal culture aligns with its external mission and values.

  
  

Brooks concludes that the most effective way to manage people is to treat them as people, not as machines.

You can read Arthur Brooks’ full article here: The Management Anti-Fad That Works.