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Meet the psychological needs of your people – all your people
Article

Meet the psychological needs of your people – all your people

McKinsey, 2022


Editorial Rating

8

Recommendation

What motivates employees to stay with a company? According to an international survey of 50,000 workers, the majority of them, even those in the lowest-paid positions, value psychologically satisfying work more than high income. Thus, McKinsey researchers Tera Allas and Brooke Weddle prompt companies to go beyond improving pay and benefits, and to start satisfying the psychological needs of all employees – not just those at the top. Meeting these needs will lead to higher profitability and productivity, as well as improved employee retention and recruitment.

Take-Aways

  • Many companies only address the psychological needs of their higher-earning workers.
  • Satisfying the psychological needs of lower earners helps increase profitability and improve employee retention.
  • Leaders can enhance most roles in their organizations to provide greater levels of psychological satisfaction.  

About the Authors

Tera Allas is the director of research and economics at McKinsey & Company. Brooke Weddle is a partner at McKinsey & Company.


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