Benefits packages and pay raises won’t fix employee engagement

Credit: Elnur / AdobeStock

Can happiness be bought for $85,000? Studies show people who reach this annual income level are “generally happier” because their basic needs (food, shelter, financial safety) are being met. However, that’s the peek; more money doesn’t necessarily equal greater happiness. Once basic human needs are met, it allows time to reflect on higher needs like belonging and self-actualization. More money doesn’t cure sadness, loneliness, stagnation, and discontentment. But still, some employers think they can just throw wads of cash and jam-packed benefits packages at their employees like a piñata, hoping for a shower of engagement to rain down. But extra dollars and paid time off aren’t magic wands; they’re just money and perks.

Trends like “bare minimum Mondays,” the Great Resignation, and rage applying took center stage in media and boardrooms beginning in 2021. But just when we thought the “greats” were behind us, the Great Gloom is looming, with employees reporting feeling more unhappier than ever before. Gallup’s 2023 State of the Global Workplace Report shows that 59% of the global workforce is participating in quiet quitting. People are filling the seats and counting the minutes without actively engaging in their work. Instead, they are feeling lost and psychologically disconnected from their work. And the truth is employee engagement has dropped to its lowest level June 2022, according to APA. Why does this matter? Disengagement costs $7.8 trillion (yes, with a T) dollars in lost productivity.