The “Missed Opportunity” and the Power of Climate

I recently came across a great report by Hay Group about the power of climate in the workplace.  Hay Group,, is a management consulting firm that helps people within an organization become motivated to perform to their best ability.  This report by Hay Group, titled “The Power of Climate,” points out that many organizations spend large sums of money in order to improve, but they miss an opportunity to improve that costs very little.  This missed opportunity is simply improving conditions in the workplace.  These ‘conditions’ are defined as the “organizational climate” and when improved, will motivate people to do their best (Hay Group).

One of the most amazing findings by the Hay Group was that in a year-long study of a number of managers from a Fortune 50 company, profit margins were 71 percent higher in organizations where managers had created energizing climates than in those units with poor climates.  The report goes on to explain why climate in the workplace has become increasingly important over the years and how great leaders can create positive climates.  Hay Group even shares some examples of certain elements of a positive organizational climate, such as:

  1. Workers have the authority to make decisions to get the job done.
  2. Workers get regular feedback on how they are doing.
  3. There is a spirit of cooperation in the organization.

According to Hay Group, one of the key dimensions of climate is clarity. To read about three steps to improving clarity and get more facts and tips about improving climate, read the full article here.

How does a positive climate relate to engagement?  By creating a positive climate, do you think it is possible to create engaged workers out of unengaged workers?

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