Worker Happiness in Korea YE Ji-Eun Research Fellow Samsung Economic Research Institute Co-authored by CHIN Hyun, SUH Eui-Jung, RYU Ji-Seong I. Money Does Not Buy Happiness II. Being Happy at Work Korea's per capita income has topped US$20,000 yet Koreans don't feel very happy. Korea ranks 27th in the Happiness Index of the 36-nation OECD and Korean workers' mental health is also of concern. The number of patients treated for mental disorders was 2.3 million in 2010, a 1.5-fold increase from 2004. Personal relations is a very important factor in feeling sense of happiness at workplace, 1 and yet 86.6% of Korean workers said they have experience of having been bullied. Those bullied who were experiencing 1.5 times less satisfaction and 1.5 times more fatigue than those who were not bullied. 1 Summarizing recent studies on happiness, worker happiness in this report refers to employees who are highly satisfied with their workplace and have positive emotions and feel that their work life offers value. No. of Mental Disorders Patients Samsung Economic Research Institute (SERI) conducted a survey from April 4 to 12 to examine Korean workers' level of happiness and characteristics of happy workers. The participants were members of SERI's Korean website (www.seri.org). An analysis was done on 849 responses. The overall score in worker happiness was 55 points, slightly higher than median average, on the 100-point index. Although the respondents in general were glum about their workplace ( points), they were somewhat satisfied with their work (53 points), and its value to them (65 points). By age, happiness levels tended to increase with age. Workers who scored in the top 20% in happiness level was classified as "happy worker" and the bottom 20% as "unhappy worker," and features of their emotional Work Satisfaction and Exhaustion from being Bullied Weekly Insight (10,000 persons) 250 200 150 100 158 127 170 133 182 138 200 205 1 1 221 155 231 159 All mental disorders 2004 '05 '06 '07 '08 '09 2010 Work satisfaction, fatigue Mental/emotional/ 4 3.5 physical disorders 3.2 Source: 1. LEE Seung-Chul et al (July 23, 2012), "Creating a Mentally Healthy Workplace," Korea Economic Trends No. 733. Source: 2. SEO Yu-Jung (2013). "Status of Bullying at Workplace." Korea Research Institute for Vocational Education and Training. 6 5 3 2 1 0 4.1% Bullied people 82.5% 4.4 2.7 Bullied at least once Being bullied 5.2 Work satisfaction 2.0 Fatigue 13.4% No bullying Frequency of being bullied (%) 100 60 40 20 0 Samsung Economic Research Institute 9
Korea Economic Trends Worker Happiness and Constituting Factors by Age Worker Happiness and Constituting Factors Happiness Level by Age Worker Happiness 55 55 53 56 61 Satisfaction with work 53 Overall Emotion Value of work 65 Source: OECD. Average 20s 30s 40s 50-55 state, work and relations were compared. 1. [State of mind] Happy workers smile and take delight in work The happy workers scored 78 points in feeling positive and acting upbeat such as smiling and 29 in negative feelings such as anger and feeling ineffective. Conversely, the unhappy worker had 59 points in negative feelings and only 35 points in feeling positive. The latter, a 43-point difference compared to happy workers, was the biggest gap on the index between the two groups. Happy workers were more energized than unhappy workers by 23 points, but scored just 56. Sixty-five percent of the respondents said they felt stress at work during the past year with 19% saying the stress level was high. 2. [Work] Happy workers find meaning in work Happy workers felt their work was meaningful. They scored 82, indicating they believed they were finding Happy Worker vs. Unhappy Worker Happy Worker Unhappy Worker State of Mind 78 (gap) (43) 35 29 (30) 59 56 (23) Energy 33 Work (11) 69 Relations 82 68 (28) (27) Work Meaningfulness Management Support 54 41 3.3 persons (2 times) Friends at Work 1.7 persons 68% (2 times) Club Participation Rate 35% Note: ( ) is gap between happy and unhappy worker. 10
Work Meaningfulness Work Confidence 82 68 74 69 54 Happy Worker Average Unhappy Worker Happy Worker Average Unhappy Worker meaning in work and were developing themselves. Unhappy workers had relatively high work confidence but didn't find much meaningfulness in work. 3. [Relations] Happy workers have broad interpersonal relations Happy workers believed they are being supported by management far more than unhappy workers (68 points vs. 41) This criteria measured whether respondents felt their workplace pays attention to their opinions and treats them fairly, and whether management supported them in their work and emotionally. Personal relationships at workplaces -- trusting and depending on colleagues in times of difficulty -- were also important. Unhappy workers had an average of 1.7 friends among their work colleagues, whereas happy workers had 3.3 friends. Meanwhile, happy workers were actively expanding personal relations by joining clubs. etc. The club participation rate was 68% among happy workers, around twice that of unhappy workers. III. Ways to Enhance Worker Happiness Based on the aforementioned characteristics of Korean workers, SERI proposes a "Worker Happiness Model," and suggests six ways to enhance worker happiness -- mental fitness, meaningful thriving and mutual support. 1. Purposely maintain a positive affect It is important to make it a habit of using positive language such as saying good things and acknowledging others. This means avoiding speaking ill or sarcastically of others and acknowledging their good features. Professor John Gottman of Washington University has studied No. of Friends at Workplace and Ensuing Happiness Level No. of Friends Happiness Level 4-6 Over 7 None 13% 15% 13% 67 73 59 (Unit: %) 1-3 69% None 1-3 4-6 Over 7 Samsung Economic Research Institute 11
Korea Economic Trends Worker Happiness Model and Action Plans Me & Myself Mental Fitness Worker Happiness Meaningful Thriving Mutual Support Me & Work Stable Income, Safe Living Environment Me & Others Core Elements Mental Fitness Meaningful Thriving Mutual Support Ways to Raise Worker Happiness 1 Purposely maintain a positive affect 2 Manage employees so they stay energetic 3 Attach meaning and value to given work 4 Identify one's strengths and develop them 5 Spread happiness to others 6 Expand relations by extending and receiving help effective communication between married couples, and concluded that happy couples maintain a ratio of 5 to 1 positive-to-negative interactions. The benefits of smiling and maintaining pleasant emotion cannot also be overstated. A blood test on participants who were shown a comedy video for one hour showed a reduction of stress. Companies should address any negativity in their organizational culture such as verbal abuse by bosses, bullying and excessive drinking, and create an atmosphere where employees care for each other and abide by business etiquettes. US-based Ochsner Medical Center has a practice called "10/5 Way" for greeting, acknowledging and engaging patients, family and colleagues in the facility. Staff members are expected to make eye contact and smile within 10 feet of someone they are approaching. At five feet the expectation is that one offers a greeting, either verbal or nonverbal. 2. Manage employees so they stay energetic It is important for workers to stay physically fit in daily life. Getting off one bus stop beforehand and walking the rest of the way to work, using the stairs instead of elevators, and taking a short stroll after lunch are simple ways to fit in physical activity during a work day. Companies could identify employees' stress level and provide counseling. US online shopping mall Zappos operates expert counseling from an in-house life coach. Companies could also provide various education programs for employees so that they can self-overcome stress. Deloitte Consulting through a "Moments that matter" teaches workers how to cope with stress when a colleague is laid off or when customers complain. 3. Attach meaning and value to given work Rather than passively handle their responsibilities, workers should redesign their work actively and attach meaning to it. For example, members of the cleaning staff at hospitals who stopped to talk with patients and helped nurses express high job satisfaction. Workers should attach meaning to their work and have a strong sense of vocation. If they believe they can contribute to 12
a better world through what they are doing, they will enjoy their duties better and attach enthusiasm to them. Companies should help workers feel they can be of help to customers and contribute to corporate performance. Workers will then instill a sense of meaning to their duties. US medical device maker Medtronic offers lectures on patients who changed their lives with products that employees made, thus instilling a sense of pride to workers. 4. Identify one's strengths and develop them Workers should identify their strengths and develop them. People who take advantage of their strengths have a 1.9 times higher probability of success than those who don't. Companies should also create a positive atmosphere by helping employees develop their strengths than spending time on their weaknesses. Having longtime colleagues give feedback on each other s strengths would be useful. Companies should give duties that a worker can use their strong points while offering training to him or her for enhancement of their strength. Toyota's North American Parts Center sharply enhanced productivity through "strength-based training." 5. Spread happiness to others It is important to understand one's emotions and express them clearly to others. If a worker identifies one's emotions accurately, he or she can pay attention to spread positive emotions to others and avoid negative effects from spreading. Truly acknowledging and empathizing with others' happy situation also matters. While it is important to console others placed in difficult situations, sharing others' pleasant situation enriches happiness and personal relations. Leaders should provide active and constructive feedback to happy situations and work performance. If they frequently express anger, irritation and negative emotion or talk violently, the organization will be in a negative atmosphere. Thus leaders should acknowledge and encourage workers. 6. Expand relations by extending and receiving help Happiness expands when a worker makes friends to mutually depend on at workplace. People with friends at work are seven times more likely to regard their work as interesting than those without friends. Joining unofficial meetings including clubs expands the possibility of developing friend relationships with colleagues. Appreciation should be expressed when one feels thankful and act of kindness should be offered to colleagues. Samsung Heavy Industries and POSCO launched a "sharing thanks" initiative to create a happy workplace. Companies should support enhancing quality personal relations among employees and expand colleagueship. IBM's survey on its 2,600 employees showed that work performance was increasing in proportion to expanding relations among colleagues. It currently operates a program where unacquainted colleagues are introduced among each other raise their ties. IV. Implications The sense that "I" deserve to be happy should be clearly acknowledged and a sound optimism should be retained. Instead of chasing over-ambitious objectives, it is better to find ways to raise happiness in daily life and practice them. However, individual efforts have limits since it is a company life meaning support from the organization and management are crucial. Companies should recruit workers who can instill positive impact on the organization, pay further attention in worker happiness and conduct regular reviews to provide feedback. SERI Samsung Economic Research Institute 13