By understanding people's innate needs and the order of priority for these needs, leaders can develop a culture where people are encouraged to be their best selves. In this type of workplace culture, people realize or fulfill their talents and potential. Ultimately, businesses receive a reciprocal transfer of benefits, such as growth and innovation.
Overview
American psychologist Abraham Maslow proposed a theory on human motivation in his 1943 paper "A Theory of Human Motivation" in the journal of Psychological Review. It's one of the best-known theories of motivation, and leaders can apply its principles to the workplace. The theory states that humans have innate needs that must be fulfilled in a particular order to reach their true potential. When people reach their true potential, they become more creative, innovative, inspired, can solve problems better, and more. A self-actualized culture is great for your people and your business, as the positive traits of individuals transfer to the company.
There are five levels to the Hierarchy of Needs. Once a level is adequately fulfilled, the next level becomes more necessary, and the previous level cannot be used as a motivating factor. Teaching leaders these needs and the priority of needs will help foster a culture of self-actualization.
The five levels, including how to apply them in the workplace, are discussed below.
Level 1: Physiological Needs
Physiological needs involve food, water, air, sleep, shelter, clothing, reproduction, and maintaining homeostasis.
These basic needs are primarily the responsibility of individuals. However, sometimes people need a little extra help, and individuals with jobs that pay lower wages may have trouble fulfilling these basic needs. Additionally, a person's responsibilities (e.g., children, a second job, a sick family member) may infringe on their abilities to fulfill some of these needs.
Businesses can learn to help their people with these basic needs. Considering the job, industry, and background may help you understand your people's needs. Moreover, companies can also look at other companies to get inspired. For example, these days, it's not uncommon for workplaces to offer food and drink options.
Level 2: Safety Needs
Safety needs fall into two categories: psychological and physical. Psychological security involves having a feeling of personal security, structure, stability, predictability, and freedom from fear. Physical safety includes protection from the outside world, security of the body, and health.
There are many ways companies can help to provide psychological safety. For starters, a structured and stable work environment will help people feel that their work is predictable, stress-free, and provides peace of mind. By openly and frequently communicating with employees and being transparent, leaders can create a culture where employees know what's going on and what to expect at the workplace. Additionally, businesses can offer mental health benefits to employees, such as Employee Assistance Programs or paid mental health days.
Paying a fair wage or salary also provides mental health benefits. When people feel secure knowing they can provide for themselves and maintain a decent living standard, they will be less stressed and able to focus on other higher-order issues or needs.
Physical health is just as important as mental health. Companies can help foster physical safety with benefits and workplace policies and procedures. For example, companies can provide great healthcare benefits, including Medical Reimbursement Accounts (these help individuals with deductibles and other medical expenses). Moreover, policies, procedures, and routine audits will help ensure the workplace environment is safe and secure.
Level 3: Social Needs
Humans are social creatures. We need friendship, love, affiliation, and a sense of belonging. Social needs fall into three categories in the workplace: relationships with colleagues, relationships with leaders, and relationships with the organization itself.
The quality of the relationships with colleagues or one's peer group is essential. In the literature, this is often referred to as team-member exchange. Fostering an environment of cohesiveness and support are critical factors in peer-group relationships. Cohesion involves the perception that one works well with their peer group, has minimal conflict, and feels that they contribute positively to the overall success of the group. Support pertains to having access to the right tools, information, and resources to complete one's tasks and goals.
The unique relationship people develop with their leaders is referred to as leader-member exchange in the literature. It involves the dyadic relationship between leaders and their followers and the quality of this relationship, such as the amount of emotional support and the exchange of valuable resources. There are three facets to developing a high-quality leader-member relationship: whom employees interact with, how they interact, and the experiences within that interaction. Some have argued that the quality of the developed relationships influences employee outcomes.
People also develop a relationship with the organization as a whole, or what's called perceived organizational support. As companies and leaders provide more benefits, resources, value, support, and guidance to individuals, through reciprocity, individuals are more likely to feel connected to the organization and its leaders.
Level 4: Esteem Needs
People usually want to feel that they are doing a good job and that their efforts matter to others. It's a part of our social needs. But at this stage, people seek dignity, respect, status, recognition, reputation, and prestige. Esteem falls into two categories: internal and external.
Internal esteem is often referred to as self-esteem and has two dimensions: competence and worth. When people feel competent, they believe that they are capable and efficacious. A person who feels worthy believes they are persons of value. Self-esteem can be low, high, or inflated. In the workplace, it's important to help individuals gain a healthy and high level of self-esteem. Some ways to help with self-esteem include providing excellent training courses, ongoing coaching, and positive feedback.
External esteem is gained through receiving rewards and recognition from others. Therefore, companies can create reward and recognition programs to help provide external esteem needs.
Level 5: Self-actualization
Self-actualization is the highest level of psychosocial development. At this stage, people are more creative, innovative, and understanding. As a result, they can live more creatively, using their skills and knowledge to pursue or fulfill their unique potential.
Leaders can help their followers with this category by encouraging creativity and innovation. For example, Adobe allows its employees to explore passion projects, and Google invites its employees to spend 20% of their time working on other projects that they believe will most benefit the company.
While each company is different, consider what your company can do to foster a culture of self-actualization. For instance, specialized employee training courses will demonstrate that creativity and innovation are valued and encouraged. In addition, company culture and training policies empower management to develop and maintain a self-actualized environment.
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