Behavioral Economics for Leaders

CHAPTER 20Employees Who Don't Support the Company Mission Are 50% Less Productive Employees

Almost all companies today have a “mission statement,” in other words, a description of their goals. The mission statement is to signal both internally and externally what the company stands for and what values it embodies. Do people work better if they identify with these goals and values?

Deutsche Bahn likes to boast it's a leading global mobility service provider that places great value on comfort and punctuality. As a long‐standing customer, I always have to smile slightly at the hifalutin standards of the railway company. For me, it would be enough if the train I use for my weekly commute between Austria and Germany would arrive at its destination on time (something that has been less and less the case over the last few years). The company's mission doesn't match customers’ perception at all. Employees of Deutsche Bahn likely think the same thing. When the official goals of a company repeatedly clash with reality, employees will find it increasingly difficult to identify personally with the corporate goals. Of course, this is not just true of Deutsche Bahn but of all companies.

Businesses have a legitimate interest in ensuring that their employees take a positive attitude toward their respective company's goals and values because it leads to greater commitment and better performance. First off, companies hope for a boost in job satisfaction. And beyond that, they trust it will increase ...