• Workplaces have become increasingly low mood spaces
• But treating employees fairly can boost mood and performance, according to new research by emlyon business school
• However this doesn’t work for everyone…

Ever since the pandemic, workplace misery has been soaring. Before that even, we need only go back to the works of Charles Dickens to see that the workplace has often been a place of unfairness, graft, and misery. But since the pandemic, burnout has been soaring. Today, more than 60% of people feel emotionally detached at work, with 19% feeling completely miserable, a new Gallup poll reveals.

The Financial Times reports that “In the UK alone, mental health challenges are costing employers up to £56 billion a year in lost productivity, employee churn and sick leave. It’s little wonder that companies are projected to spend a staggering $100 billion a year on wellbeing programmes by 2030.”

One worker reports in the Guardian that when “I was forced to be somewhere even when I didn’t need to be there because my boss didn’t trust me to do my job otherwise” the “lack of trust” was why they ultimately left the role. “And because I don’t treat my workers this way my business has had very little turnover. People are happy.”

Similarly, over in America, a report found that 77% of people experienced workplace stress.

How can this be ameliorated?

It might sound simple, but if put into effect, the results could be revolutionary in terms of happiness at work: if workplaces (and therefore management) treat their employees fairly at work, the employees will tend to flourish, which will result in a boost to the whole team and workplace’s performance and productivity, new research by emlyon business school has found. Fulfilment and fairness are powerful motivators in the workplace.

This is backed up by the latest reporting. Deloitte’s latest human capital trends report, derived from a comprehensive survey of 10,000 business and HR leaders globally, highlights the significant transformation underway in the modern workplace. The report argues that as the dynamics of work evolve, both organisations and employees must recalibrate their approaches, advocating for strategies that are “viewed through a human lens — designed by humans and for humans.” This shift underscores the growing importance of human-centric approaches in navigating the complexities of today’s business environment, the Financial Times writes, in support of “fair pay” over “high pay.”

More and more workers are prioritising workplaces that offer sabbaticals to improve their work-life balance. More than half of workplaces now offer sabbaticals, to support employee wellbeing and work-life balance. This is a net gain to both the employee, who gains life satisfaction and a break from work, and the company, which reduces burnout among its staff and better retains staff, as well as attracting top talent.

Treating employees who are money-motivated fairly, however, does not have any positive impact on their performance, the researchers say.

These findings come from research by Thierry Nadisic, Professor of Organisational Behaviour at emlyon business school in France, alongside his fellow researchers.

The researchers sought to examine whether policies that promote fairness impact employees’ sense of well-being and their ability to contribute effectively within their organisations. The study’s methodology involved administering detailed questionnaires to over 1,000 individuals, a large sample size representative of the French population, taking into account factors such as gender, age, region, and professional background. The respondents were asked to reflect on their confidence, work behaviours, materialistic tendencies, and perceptions of fairness in their workplaces.

Fair treatment improves overall wellbeing

The results were striking. Employees who felt fairly treated—through adequate wages, recognition, opportunities for expression, and respectful interactions—were significantly more motivated to pursue shared goals and engage in collaborative efforts. This sense of fairness fostered a supportive and team-oriented environment, which in turn enhanced overall organisational performance.

This fair environment also meant that employees were more likely to support and help each other, as opposed to focusing purely only on themselves – likely due to the fairness creating a more secure, respectful and team-focused environment, rather than competitive and individualistic – which fostered an overall boost to performance.

Material obstacles

However, the study also identified a notable caveat. Employees driven primarily by materialistic values — those who prioritise financial gain, social status, and self-image — did not experience the same positive effects from fair treatment. These individuals were less responsive to fairness in the workplace, which in turn diminished their ability to thrive in a fair environment. The researchers caution that materialistic employees may even disrupt team dynamics and efforts to promote fairness, as their focus on personal gain and cash can undermine collective efforts toward an environment which promotes overall human flourishing.

The researchers argue that materialism represents a “lose-lose” scenario, where materialistically inclined employees are less satisfied with their lives and may harm the organisation by prioritising personal gain over collective success. Appeasing them by giving them what they ask may even harm workplaces.

“It’s always been the assumption that a fair environment in work is a ‘win-win’ for organisations, who are able to help all employees flourish as well as getting the best out of them,” says Professor Thierry Nadisic. “However, our research shows that this assumption may not always come true. In fact, when people are more materialistic or money-motivated, this approach could not actually get the best out of all employees.”

The study advocates for companies to maintain a strong focus on fostering fair and supportive environments while also addressing the challenges posed by materialism. To mitigate the impact of materialism, the researchers recommend careful recruitment, training, and management practices that align with the organisation’s values and goals, ensuring that fairness remains a cornerstone of workplace culture.

It’s important for companies to focus on creating fair company and team environments and try to diminish the level of materialism of their employees by using adapted recruiting, training, rewards and management policies and practices.

By Thomas Willis

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