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FT editor Roula Khalaf selects her favorite stories in this weekly newsletter.
The nonsense that flows through the average journalist’s inbox each week is a marvel to behold.
But last week, between the usual alerts about obscure middle managers moving into mainstream positions at companies you’ve never heard of, and the vital news that AI is disruptive, there was a stopper.
An online resume writing team had written to say that an analysis of more than 20 UK industries showed that a) the happiest employees worked in finance and insurance and b) these workers earned the most, with an average of £85,538 a year.
This sum was almost three times the salary of the least happy employees in accommodation and food services, and more than double that of the second least happy employees in the agricultural, fishing and forestry industries.
Wow, I snorted to myself. The highest paid workers are the happiest. Who could have guessed?
I was still thinking about this when I ran into a friend who reminded me that things are actually not that simple.
Several generously compensated executives at his financial group had recently resigned to work at rival companies for reasons beyond money. “They don’t feel loved,” she said, explaining that a man she worked with had just left after his manager repeatedly praised his colleagues but almost never mentioned his equally valuable efforts.
Frankly, I think I would find ways to endure if I was paid half of what this man made. Additionally, with bonus season approaching, it’s worth saying that money is still a powerful motivator, especially in finance.
But my friend was right. Once you earn enough to meet what you consider basic needs, you will be more inclined to value the non-remunerative aspects of the job, such as praise and recognition.
Put another way, people can stay in jobs that pay less than the market rate if they feel that their work is regularly and adequately valued. To be more specific, if they receive recognition at least monthly, they are 33 percent more likely to say they will not look for a job in the next year, some investigation sample.
However, the share of American workers who say they have been praised or recognized in the past seven days for doing a good job dropped to a minimum of 15 years this year, reflecting a drop in the percentage who say they are extremely happy with where they work.
This raises the question: Why don’t managers use praise more skillfully?
It’s hard to think of something that costs so little, requires such a ridiculous amount of time, and yet accomplishes as much as a quick email or quick chat to praise someone’s work.
For employees whose work goes largely unnoticed, or is only noticed when they make mistakes, this recognition can be very meaningful.
Pathetically, I still remember the time when I was a news editor and a senior executive came to marvel at how our desk had turned several unreadable stories into readable reports, at great speed. Of course, this was our job. But it was also largely invisible, except when we inserted a mistake or committed some other atrocity that required corrective action.
Still, even star employees with big salaries in high-profile positions like to be praised. And there’s a lot to be said for peer recognition, too.
I’ll tell you a little-known fact: one of the reasons the Financial Times is such a nice place to work is that, although it’s full of competitive people, a notable number send notes of thanks or praise to their colleagues when they spot a job. What do I eat?
This happens organically. Other larger companies try to make these kinds of things with programs like the one that US airline JetBlue has used to encourage staff to appoint colleagues who do admirable work.
Those admired received points that they could use for various gifts. One analysis The effort has shown that for every 10 percent increase in the number of people reporting they have been recognized, the airline experienced a 3 percent increase in retention.
This is nothing. Replacing an employee can cost up to twice their annual salary, not to mention the extra work and weakened morale faced by colleagues left behind. In short, it says a lot for a note that contains six short words: thank you for such great work.