Why high belonging employees are a leading indicator of business success

Jeff Stier and Woody Driggs

Employee tenures today are dramatically shorter than generations ago. In competitive labor markets that means optimizing employee retention becomes crucial to business stability, profitability and growth. Now new thinking suggests employee loyalty, as well as productivity, connectedness and trust are all by-products of a positive sense of belonging — the fundamental human need to feel recognized, heard and valued for who you are as a unique individual. Employers who seek the most loyal, engaged, motivated and innovative employees must train executives, as well as managers, to operationalize business practices that cultivate belonging in the workplace. Doing so will enable and sustain high belonging individuals, high belonging teams, and high belonging cultures that have a direct and positive result on business. Let’s take a closer look at what that means.

Understanding the psychological foundations of belonging

The human brain is inherently social. We are all hardwired to seek connections and feel part of a group. This need for belonging is more than personal preference, it’s a psychological imperative that influences behavior and satisfaction in every aspect of life, including the workplace. When employees feel that they belong within their professional lives, they are more committed and motivated to contribute to their organization’s overall success. And when multiplied at scale, that also means improved connection, communication and collaboration with colleagues across the organization.

Positive benefits of belonging in the workplace

When people feel they belong, a lot of positive things happen for them — and your business. Increased job satisfaction and a sense of being part of a work community leads to reductions in turnover and costs associated with finding replacement talent. Over time, and across the company, this can boost employee loyalty, which is being challenged with Gen Z workers, almost 40% of whom have a “side hustle” beyond their day job.1 But as job satisfaction improves, so too does commitment and productivity as workers feel more aligned with the company’s goals and connected to colleagues.

Negative impacts of unbelonging in the workplace

Employees who feel isolated or overlooked by their teams and employers can suffer from reduced motivation and engagement with their work, impacting performance. A lack of belonging leads to poor morale which decreases productivity and exacerbates the burnout that 64% of Gen Z workers already feel at work (2). When exclusion continues, employees eventually act and leave, in search of another organization where they can belong. Look at any business with high turnover and you’ll see a company with employees who feel undervalued and unrewarded.

A new way to measure belonging in the workplace?

While some organizations may have visible evidence of a low-belonging culture and teams, it’s true that every company can do better to foster belonging. Taking the time to understand how prevalent low belonging is, the root causes, plus how to actively promote higher belonging, can help every organization predict potential future turnover, productivity and trust issues to increase loyalty.

Enhancing belonging in the workplace begins with recognizing how employees perceive their place within the company. Have workers ask themselves foundational questions: do they feel recognized, valued, and respected by their company and teams? And do their supervisors foster inclusive, psychologically safe environments. The answers to these questions are critical to assess the overall belonging health.

To track and benchmark workplace belonging, an EY team developed the Net Belonging Score (NBS), a concept designed to measure the qualitative and quantitative aspects of workplace belonging. While the Net Promoter Score (NPS) predicts customer loyalty from the outside in, the Net Belonging Score predicts employee loyalty from the inside-out to help executives make more informed decisions about their organizations and people.

?The diagnostic power of EY's Net Belonging Score

The NBS can be used in three impactful ways:

·?????? Baseline assessment: Establishing a baseline belonging score helps identify whether a company or team has a high or low culture of belonging.

·?????? Leader assessment: Evaluating how well each team leader creates a sense of belonging can pinpoint areas for improvement for teams and managers.

·?????? Track for continuous Improvement: Regular NBS assessments can track the effectiveness of interventions aimed at improving belonging and validate the effort and allocation of resources.

?With this diagnostic data, companies can tailor trainings and inclusive policy adjustments to enhance the sense of belonging. These measures, in turn, improve the NBS and drive overall performance and health of the organization.

Belonging as a strategy for success

Investing in a culture of belonging is more than a moral obligation; it is now a strategic imperative. That is true for all employees, but especially younger Gen Z workers motivated by organizations that have strong values and supportive cultures. High belonging teams and cultures create more enjoyable places to work and to perform better. And entire workforces can become more fully aligned with company goals, becoming flexible in the face of challenges and demonstrating robust capacity for innovation.

As the workforce continues to diversify, fostering meaningful belonging is more critical than ever. Concepts like the NBS are invaluable in helping leaders ensure all employees feel valued and empowered to contribute to their potential. The journey toward a high belonging culture may be challenging, but at the same time, the rewards — a loyal, productive and engaged workforce — are well worth the effort.

The views reflected in this article are the views of the author and do not necessarily reflect the views of Ernst & Young LLP or other members of the global EY organization.”

?

Sources:

1.?????? EY – Gen Z Segmentation Study – How can understanding the influence of Gen Z today empower your tomorrow? | EY - US

2.?????? EY – How is Gen Z driving shifts in how we all live, work and play – How Gen Z is driving shifts in the workplace and beyond | EY - US

?

Woody Driggs Marcelo Godinho Bertrand, Jr Kimper Cheryl Grise Ted Acosta Maya Smallwood Marian Stier Tal Goldhamer Anthony Caterino Aaron Hurst Adam Grant