A new paper from the University of Warwick explores how high-quality jobs can boost innovation and productivity. It found that while higher pay motivates workers, its impact on job satisfaction plateaus after a certain point.
Instead, how pay is distributed continues to motivate workers. Performance-related pay (PRP) schemes, such as employee ownership models, keep staff engaged and happier. Bonuses and stock options also lead to more productive and content employees. PRPs have a greater impact on the productivity of men, while women are more motivated by other factors.
Quality jobs
The research shows that high-quality jobs enhance worker innovation, productivity, and well-being. The paper defines good jobs along seven metrics:
- Terms of employment
- Pay and benefits
- Health, safety, and psychosocial well-being
- Job design and nature of work
- Social support and cohesion
- Voice and representation
- Work-life balance
Researchers examined these metrics and compared them with business outcomes like productivity, innovation, and employee health and well-being.
“Our findings provide good news for governments and businesses aiming to improve innovation, productivity, and employee well-being,” the researchers explain. “By enhancing worker well-being, employers achieve a win-win. Happier staff are more productive and hardworking, making this a top priority for employers and policymakers.”
The paper also found that giving workers a say in how their tasks are done is beneficial. There is a strong positive link between a good work-life balance and productivity, whereas temporary employment and long working hours reduce productivity.
Moreover, long working hours negatively impact mental and physical health. Job insecurity and precarious employment harm mental health, while having control over tasks and task variety is associated with good mental health. Trade union presence in workplaces also lowers occupational health risks.
