Category: Leadership

Leadership is an insanely important discipline. Here you’ll find the thought, tools and tricks of the trade of great leaders.

  • Jobs, careers and callings – the surprising truth about happiness and motivation at work

    Amy Wrzesniewski is a professor of organizational behavior at Yale School of Management. Her main interest is how people find meaning at work which is a fascinating topic and her work has been a huge inspiration to our work here at Woohoo inc. We recently had a chance to talk to her about it and here’s the transcript that reveals some real surprises about what makes us happy and motivated at work.

    Read the interview below and learn:

    • Why people who find meaning in their work are happier at work and in life
    • Why monetary rewards can make us less effective at work
    • How external motivators like raises and bonuses kill our internal motivation over time
    • How to help employees find meaning at work

    One of the main distinctions that you’ve found in your work is, that there are three ways people find meaning in their work. They can see it as a “job”, as a “career” or a “calling”. That’s a brilliant concept. Could you please explain each of those.

    Sure. This is together with many collaborators and co-authors of mine. We’ve for a long time been interested in understanding the nature of the relationship between people and the work they do, with the idea that it isn’t necessarily a property of the job itself, how people think about or connect with their work.

    So we’ve developed a measure and have studied people in lots of different kinds of occupations and have found that people, regardless of occupation, can see the work that they do as a “job” where the focus is primarily financial, where you get a paycheck out and the work is primarily about the economic exchange with the organization more than about the work itself.

    Or people can see the work that they do more as a “career” where the focus is on advancement within that occupation or within that field, within the same organization or across different organizations over time. For people who have a stronger career orientation, their focus is on advancement and moving forward, with the accompanying increases in prestige and power and so on that come with that.

    The last orientation we study is the “calling” orientation, where people are working not for career advancement or for financial gain, but instead for the fulfilment or the meaning that the work itself brings to the individual. People who see their work more as a calling see the work as an end in itself that is deeply fulfilling and regardless of the kind of work they’re doing, they tend to see the work as having a societal benefit.

    That is absolutely fascinating. How common is each of these orientations. How many people fall into each of these three buckets?

    We looked across wide swaths of different occupations and what we find is about a third, a third, and a third of people, one of these is strongest for them.

    Interestingly, if someone strongly identifies with one, they won’t strongly endorse the others. We know this both from a sort of vignette kind of paragraph measure that we use but also lots of single item measures that we use to study this.

    If you look in, say, caring professions where you would imagine that there are more people who see the work as a calling, you do find that. The propensity to have a calling is stronger there, but interestingly, it isn’t necessarily universal. People who are engaging very much in work that we might idealize in our culture to be callings, may very well see that work as just a job or as a way to advance to become, say, head of the department or something like this.

    Is there a difference between low wage and high wage jobs or low education/high education? There might be a perception that you might find more people with a calling orientation among doctors or engineers and maybe less so among fast food employees serving burgers.

    It’s a great question. What we find generally is that people who have stronger calling orientation tend to have higher incomes and tend to be more educated.

    However, if you think about the kind of work that people go into, if you are coming from a level of income or a level of the education and educational opportunities that would allow you to pursue something that you find to be more meaningful, you would expect generally that people in that group would be more likely to have found something that they feel is a calling.

    What’s interesting to me, very interesting in my opinion, is that even when you look at jobs that are at the lower end of the educational, income or status hierarchy, you also find people who see their work as a calling, just as you find people at the top of the education and income hierarchy who see their work as just a job.

    And they look more similar to each other on the basis of their approach to the work they do, because that predicts how happy they are in their work, how satisfied they are with their work, and how satisfied they are with their lives.

    So even across the income and education spectrum, identification with these orientations and the pattern of relationships between the orientation and people’s well-being is the same regardless.

    So you don’t need a university degree or a CEO title to find this calling orientation.

    No. In fact, people we’ve studied who are doing groundskeeping work, laborers, people doing janitorial work –  again work that in society we tend to view as being perhaps not necessarily as meaningful – can be experienced in incredibly meaningful ways and seen as a calling by people who are doing that work. Just as you also see people who do that work who see it as just a job or who see it as a career where they want to move up and say manage people who do this kind of work.

    It’s not the province of the work itself it really is a function of the relationship between the person and the work that they’re doing.

    Interesting. That means that it is accessible to most people. Do you have any great examples? Have you met any people in, which on the face of it are low status jobs, but who had this calling orientation?

    Yes. You know, people who work as trash collectors, who collect the garbage in the town in which they work, who experience their work as being critically important to society, who feel that every day they are beautifying the world by removing the things that we don’t need and taking them away and who feel that this again this work is something that the entire region couldn’t function without it, which is true. And it’s work that gets them outside, they’re in touch with people who live in the town, they’re in touch with nature, and see the work in very positive terms. And certainly much more positive terms than people who study work from the perspective of the design of the job would have expected.

    Same thing in a study that I did with colleagues of mine, looking at people who clean hospital rooms for their job. That involves a lot of dealing with cleaning products and seeing pain and suffering since you’re in a medical environment. Again, there were people who saw the work very much as a job. It’s a way to get benefits, make a paycheck, and so on. But there were also people who saw that work as a way to fulfil a calling, where they could play a role in the lives of the people who were in the hospital. They’re doing the same kinds of duties, they have the same kinds of job descriptions, but they redefine it in terms of how they think about what the work is, why it is there, and what it is they’re doing, in very different ways, that again is reflected in a much deeper enjoyment of the work and sense of importance of the work to other people.

    Is it fair to say that people with the calling orientation generally are happier in their jobs?

    Yes. People who have a calling orientation, regardless of the kind of work they’re doing, have a significantly higher job satisfaction and also significantly higher life satisfaction.

    It’s not, again, a province of what the work is or what the job is, it’s how the person is relating to that work, how they think about what it is they’re doing there.

    And what about the other two groups? Who is the least happy?

    You know it’s an interesting question. When we had originally begun to study this question, we had thought that the job orientation would perhaps be the least happy, because there’s less of their identity invested in the work, because it’s simply more of a financial exchange than anything else.What we find, to my surprise, is that people who see the work as a job or a career are equally less satisfied with the work and are equally less satisfied with their lives.

    In the research I have done, one of the things that I wonder about is, in the job orientation, there’s a focus on the instrumental; it’s a means to an instrumental end. In a career orientation, there’s also an instrumental end. It’s just what that end is, it’s different. It’s about advancing, it’s about increasing your status and so on.

    My sense is that they’re more similar than we might think. When it’s focused on instrumental ends, or things that are about the self, it seems to carry less meaning for people.

    There’s a more recent paper done by Jochen Menges and his colleagues, Grant and others are on this paper as well, that look at people who see the work more as a job, but they’re engaging in this job as a way to give income or pay to their family members. This makes the work much more meaningful to them, again because it’s not so much about the self. That’s been the surprise of this, that job and career are more similar than we might think.

    That’s absolutely fascinating. So what are some ways to cultivate his calling orientation? What are some things I can do for myself as an employee somewhere to achieve it? And what can the organization or the manager do for the employees to have that calling to feel that sense of meaning and calling orientation?

    It’s a great question and I think it’s a complicated question.

    This may be somewhat of a surprising thing for me to say, but there are many people for whom work is not a domain where they are seeking this kind of experience. They have put a lot of their identity, of where they see themselves fulfilling their purpose, outside of the domain of work. So the place to start off with, is to understand, is the employee seeking this kind of meaning in their work?

    Many of them are, and are not finding it. I think for them, the best thing for these employees, would be to think about how they might act upon the design of their jobs. In other work I’ve done with with Jane Dutton and Justin Berg and other colleagues, we’ve looked at the practice of “job crafting.” How is it that people in the job they’re in, change elements of the tasks or of the relationships or interactions in a way that brings more of the kinds of things that they find to be useful, that they care about, passions that they feel into the work. I think this can transform the meaning of the work. And it’s very agentic, it’s done by the employee. That’s probably the best path for this within the job you have if it’s not possible to, say, move into a job that feels more like a calling.

    For managers, this is somewhat tricky. Job crafting is a bottom-up activity, it’s an employee based activity. So rather than, say, advising managers of organizations to try to design jobs so that they’ll feel like callings, I think the best thing that they can do is create environments where people feel empowered to make changes to the kinds of work they’re doing, while obviously fulfilling their responsibilities to the organization right? You have to keep doing what it is that the organization has hired you to do. But can you approach that in a different way? Can you spend some more time in particular aspects of the tasks that are engaging to you? Can you build relationships in directions that, again, sort of will infuse the work with more meaning?

    I think giving people permission to do this, and encouraging them to do this while fulfilling their duties to the organization, can be a very powerful and supportive move that managers and organizations can make.

    This reminds me of the huge trend right now in self-managed organizations where you give employees more freedom. In a lot of these organizations, you’re not hired to do a job, you’re hired because you’re a great person with great skills, and then you have to create your own job. That would basically open the door for more of what you’re describing.

    Yes, absolutely. I think even in organizations that we’ve studied, where people have a lot of latitude over how it is they’re spending their time and energy, what’s interesting is that over time even when you’ve defined it yourself, as time passes you move into this sort of more crystallized definition of the job. So even though it’s a job design you created, people can end up treating that job design as very static where it’s a set of things they must do and so on.

    So even for people who have had the opportunity to design it themselves, we would encourage them to revisit this and think about “okay well how and where could you revisit this, to make it a more optimal way of expressing what it is you care most about, what it is that you find most meaningful, in a way that brings a lot of value to you in terms of the meaning that you’re finding in the work but also a lot of value to the organization. And make it an ongoing process not just a one-off design.

    Fascinating. The reality is that even if we do see our work as a calling, we still do it for the money, okay? Unless you’re born to filthy rich parents, you have to work and you’re dependent on the paycheck. So these motivations, to some degree, have to coexist for most of us. You did a study recently on how they affect each other. Could you talk a little about the West Point study?

    Yes, absolutely. So together with a number of colleagues, Barry Schwartz, Tom Colditz and others who supported this study, we studied about 10,000 West Point cadets. We followed them for a period of up to 14 years and the first thing we were interested in studying at West Point was what was the nature of their motivation for attending.

    It’s a huge undertaking to make this commitment. You’re in a very intensive and rigorous academic environment and also military environment for four years, and following that time you are a commissioned officer for five years. So it’s a nine year commitment that people who are 18 or 19 years old are making.

    You might imagine that all of them go because they want to serve their country and it’s about more internal motives about service and so on. But there’s a lot of variance as to why people are there. Some of them are there because it’s a free education that pays a small stipend. Some of them are there because they know that after they’re nine years of service they can leave and they will be likely to be employed and very attractive to organizations where they could have a rewarding career.

    If you think about it, people who’ve gone through West Point and have become officers and so on really truly know how to lead. They’ve got a great education. So some of the people who go are there primarily because they know there will be a big career payoff later. So that particular motive we characterize as more of an instrumental motive. We studied them upon their arrival to West Point.

    They rated all of these different reasons for why it was they undertook this course of action and we were interested in studying the question of whether one motivations was fine but maybe having two or three different motivations could be even better because then you have more legs to your stool. There are more reasons, perhaps, propping you up for why it is you’re there.

    But what we found is something that has gotten also support in economics and psychology. Some people are motivated by internal reasons, things that are more akin to a calling. I’m doing this because it’s an end in itself, in this case, I’m here because I want to be an army officer, so that the aim of the institution and all of these activities is my aim. I’m not doing it for some other outcome that will follow from this – like being hired by fortune 500 companies or making more money later.

    So we looked at that internal motive and we also look at this instrumental motive of going to West Point because you hoped to be in a more high-powered career later on. And we found that in every case the stronger the internal motivation of the cadet, the more likely they were to have positive outcomes over time. Those positive outcomes were:

    1. Make it through West Point. There’s a fair amount of attrition, it’s a very difficult institution.
    2. That they would be flagged for early promotion because they were an excellent officer in those first five years of service after they had graduated.
    3. And also that they would stay on and remain in the military after their required service as military officers.

    And what’s interesting is multiple motives. For those cadets who who held these internal motives but where that instrumental motive was also apparent, the stronger the instrumental motive was, the poorer the outcomes were for each of these different categories. And so it undermined in essence the positive effect of the internal motivation on whether they made it through West Point, how well they did as army officers, and then how long they stuck it out in the military.

    We feel this is really important because what it means is in anything we do, whether it’s being a student, whether it’s our jobs you know anything we do, we may have internal reasons for doing it, but if you do well in it, you will get instrumental rewards. You’ll get pay raises, you’ll get accolades, you’ll get these other kinds of things.

    The distinction that we would make is between being pleased that you’re getting these things, versus being motivated by them, so they become the reason why you’re there. Like you said, most of us need to work unless we’re independently wealthy. It’s a given that we must work and we do need to pay attention to salary or the wage rate or whatever it might be. But make sure it doesn’t become your reason for being there. Keep it this secondary thing that you must sort of attend to, but it’s not a motive

    We feel the power of internal motivation or the power of a calling orientation can really carry people to a different level of job satisfaction. In the case of West Point it drives performance and excellence as well. I think there’s a hugely important lesson there for companies, because they constantly try to tie performance to rewards.

    What your what your study underlines, is that whenever you do that, the instrumental goal will crowd out the internal goal over time and make you focus more on the external motivator – the reward – than on the internal motivation, the calling, on the purpose of what they’re doing, right?

    Yes. I think the best advice I could give to organizations would be to pay employees as well as you can. Then move the emphasis from that. The more that organizations narrate for people that the reason they’re there is to be making money, and what they want when things go well is more money, and that it all comes down to, you know, that they’re working there because they have these instrumental goals, the harder it is for someone to sustain in the face of that the feeling why it is they’re there, that has to do with the ethos of doing the work itself or the work as a focus of you know striving for excellence or wanting to accomplish the things that happen naturally as a result of the work, whether that’s teaching students or cleaning a street or cleaning a patient’s room.

    If you are removing the focus from that and constantly reminding people that they’re really there because they’re getting money, I think both organizations but also individuals suffer.

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  • Watch my keynote from the Happiness@Work conference in Prague


    Earlier this month I had the pleasure of giving the closing keynote at the 3rd annual Happiness@Work conference in Prague to a sold-out audience of 350 people.

    I spoke about Leading With Happiness based on my new book and you can see the entire speech above.

  • How do you make young employees happy at work?

    One of the biggest challenges for companies these days is to attract, retain and motivate young employees.

    There is a huge debate on how Millennials and Gen Zers are spoiled. They come into the workplace expecting recognition, professional growth, meaningful work and reasonable working hours. Many managers struggle to relate and ask “What is wrong with young people these days?” We ask “What is wrong with everyone else, that we’ve given up on those things?”

    McDonald’s Denmark relies heavily on young employees and have handled this challenge so successfully that they’ve won first place in the Danish Great Place to Work awards several times.

    At our international conference on happiness at work in 2017, their head of HR Mette Hybschmann shared how they created a workplace culture where young employees are  happy and motivated and experience professional and personal growth. You can see her entire speech here and get lots of specific ideas for motivating young employees.

  • My new book, Leading With Happiness, is out TODAY

    My new book, Leading With Happiness, is out TODAY

    “Leading with happiness is compelling—it’s useful, well-researched, and downright fun to read.”
    – Robert Sutton, Stanford professor and author

    My latest book, Leading with Happiness: How the Best Leaders Put Happiness First to Create Phenomenal Business Results and a Better World is out TODAY and I could not be more excited.

    The book presents a simple but radical idea: The fundamental goal of any leader should be to increase happiness in the world. Leaders who don’t do that, are doing it wrong.

    Drawing on lessons from psychology, neurobiology and philosophy, the book demonstrates why leaders should put happiness first – for themselves, their employees, their customers, and the wider world – and why happy leaders are more successful.

    It’s been very well received already. Garry Ridge, the CEO of WD-40 Company, said “Every leader should read it. That type of leadership has been integral to our success and I know it will boost your results too.” Henry Stewart, the CEO of Happy said “This is a book that the world needs. It will move you. It will excite you. It will inspire you. And it could well change your life.”

    The initial reviews on Amazon are VERY positive too:

    You can read more about the book on its website at www.leadingwithhappiness.com and you can buy it on Amazon as a Kindle e-book or as a paperback.

  • My new book “Leading With Happiness” comes out November 21

    It’s official – my next book, Leading With Happiness, comes out on November 21st.

    Robert Sutton, Stanford professor and author, calls it “Compelling, useful, well-researched, and downright fun to read.”

    Preorders are already open for the Kindle e-book version – get it here. Paper books will become available on the publication date.

  • Read My Next Book Before Everyone Else and Completely FREE

    I am REALLY excited to announce that my next book “Leading With Happiness” comes out on November 21st. Read all about it here.

    You are hereby cordially invited to read it completely FREE and before it goes on sale. The only thing we ask in return, is that you review it online when it is published. Click here to see how it works and sign up to The Early Reviewers Secret Club :) Access is limited to the first 500 people and you must sign up no later than November 2nd.

    Sign up is closed.

  • The 30-hour workweek. Promising or pipe dream?

    There is currently huge interest in the 30-hour workweek in many workplaces . But is this just a pipe dream or could it actually lead to better results, happier workplaces and less stress?

    In this video I talk to Lena Rübelmann and Juliana Wolfsberger who have written a masters thesis called “The 30-hour Workweek -A Promising Alternative for Knowledge Workers?” at Lund University School of Economics and Management about their findings. My favorite: Switching to a 30-hour workweek does not reduce output. People get as much work done as they did before, even though they work fewer hours.

    If you want to know more, Juliana and Lena are happy to share their findings. You can reach them here:

    Other companies are finding the same thing, including Toyota Center Gothenburg, who 12 years ago, went from a normal 40-hour work week to only working 30 hours a week – and found that employee happiness, productivity, customer satisfaction and profits all went up. At our2015 Happiness at Work Conference, CEO Martin Banck explains why they made that weird decision, how they did it in practice and what has happened since then:

  • The Cult of Overwork is Killing Startups

    The Cult of Overwork is Killing Startups

    The New York Times has a great article called “In Silicon Valley, Working 9 to 5 Is for Losers” that examines workaholism in startups. It even quotes one entrepreneur as saying “I rarely get to see my kids. That’s a risk you have to take.” I wonder if he asked his kids if that was a risk they were willing to take.

    The piece also quotes from this excellent article by David Heinemeier Hansson, where he points out that startup investors are the main driver of this culture:

    There’s an ingrained mythology around startups that not only celebrates burn-out efforts, but damn well requires it.

    It’s not hard to understand why such a mythology serves the interest of money men who spread their bets wide and only succeed when unicorns emerge.

    There’s little to no consequence to them if the many fall by the wayside, spent to completion trying to hit that home run. Make me rich or die tryin’.

    It’s bullshit. Extractive, counterproductive bullshit peddled by people who either need a narrative to explain their personal sacrifices and regrets or who are in a position to treat the lives and wellbeing of others like cannon fodder.

    These two articles do a great job of exposing the toxic overwork culture in many startups but I just want to add five few quick points on the topic:

    1: If hours are all that matter, an entrepreneur working 80 hours a week will be beaten by one working 90 hours a week. Where does it end?

    2: Many of the mental qualities that make a startup successful are lost when people are overworked, tired, stressed and unhappy, including networking, creativity and effective decision making.

    3: Permanent overwork kills people. For instance, those working a 55-hour week face 33% increased risk of stroke.

    4: Permanent overwork doesn’t result in increased output.

    5: Pointing to successful startups that worked 80 hours a week proves nothing. What about all the startups that worked 90 hours a week and failed?

    Imagine starting your own company and ending up creating a workplace where you hate to work. How stupid is that?

    On the other hand, employees of a startup where people are happy to work and have full lives outside of work, will be more productive, motivated and innovative, boosting the startup’s chance of success.

    Even if working crazy long hours did enhance a startup’s chance of success (which it does not), it would still be wrong because it hurts employees physically and psychologically.

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  • Lego, making near-record profits, lays off 1,400 people – with no criticism from anyone

    I am incredibly disappointed in Lego’s recent decision to lay off 1,400 staff even tough they have near-record profits. Here are the facts:

    • Lego’s revenue fell 5 percent in the first half of 2017 to 14.9 billion Danish kroner ($2.38 billion) compared with 15.7 billion Danish kroner in H1 2016.
    • Net profit came in at 3.4 billion Danish kroner, compared with the first half of 2016’s 3.5 billion Danish kroner.
    • They will therefore lay off 1,400 people – approximately 8% of the workforce.

    Normally in a situation like this, I’d suspect leadership of doing layoffs to placate stockholders, but Lego is privately owned, so that’s clearly not the case here.

    Crucially, the company is not losing money. In fact, even though sales have fallen slightly, profits are essentially constant and at near-record levels for the company, so it’s hard to see exactly what motivates this move.

    What has really surprised me is that there has been no pushback or criticism from the financial press. It makes you wonder: What kind of a business climate are we living in when this kind of decision is met with nothing but approval from all observers?

    I’m sure no one at Lego or in the financial press cares the slightest bit what I think, but I thought it was important that someone speak out against this kind of leadership. Hence this article.

    Lego´s chairman of the board and former CEO, Jørgen Vig Knudstorp, says that the layoffs come because the company has become too big and complicated:

    The way we do business, the way we do our marketing, the way we do our market management, but also how we run the whole administration of the company unfortunately has become too complicated as we’ve grown the company massively over the past 12 to 13 years.

    That’s what’s really hindering us in executing in a strong way – as we used to – and therefore we are finding it harder to grow in some of our very well penetrated and established markets.

    But if the organization has become too complex, you don’t fix that just by laying people off – you do that by fixing the organization. In that context layoffs may even be counter-productive. Trying to streamline your organization becomes a lot harder when you’re simultaneously laying off 8% of your staff and dealing with the ensuing organizational and psychological fallout.

    Mostly I’m disappointed with the attitude towards employees revealed by this decision. Layoffs carry huge psychological costs for both those who lose their jobs and for those who remain and therefore they should be a last resort when all other options are not sufficient. In this case, lego clearly had many, many other options.

    I see this move as a huge lost opportunity for Lego. They could have cemented their reputation as a good workplace that can handle a minor drop in sales and profits in a way that doesn’t make staff pay the price.

    As a consequence, I have removed all mentions of Lego from my next book, Leading with Happiness. I’d included them in a couple of places as an example of a company where leadership cares deeply about its people – this is clearly not the case any more.

    What should they have done instead? In my next book I share the story about a tech company that lost half their revenue and found a way to come out stronger and more profitable without laying off a single person. If a company can do that when it’s very survival is threatened, Lego could definitely have done something similar when they’re still incredibly profitable.

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  • Leading with Happiness – my speech from the World Happiness Summit in Miami

    At the World Happiness Summit in Miami I gave a 15-minute speech on Leading with Happiness – the same topic I’m covering in my next book.

    In the video I share what’s wrong with traditional leadership and its relentless focus on business results and give some great examples of leader who create more happiness for themselves, their employees, their customers and the world.