WOW: Edelman Nails the Relationship Between Productive Workers and Optimism

WOW: Edelman Nails the Relationship Between Productive Workers and Optimism

I was pleased to open the 2024 Edelman Trust Barometer Special Report: Trust at Work, particularly the "Employers Can Unlock Economic Optimism" section.

The report captures a truth that aligns with The Centre for Optimism 's research: optimism is essential to productivity, engagement, and overall success.

Edelman finds that a widening gap in economic optimism between employees at different levels of the organisational hierarchy negatively impacts performance, productivity, and mental health. I see an increasing disconnect in Australia and one I noted recently in the USA, too. In the Australian case, it's confounding as we have prided ourselves on an egalitarian workplace,

It also reveals a concerning new workplace polarisation, marked by a widening gap between "associates" and executives in optimism about their economic futures. This "chasm" affects performance, productivity, and mental health, and employers have a unique opportunity to close it, increasing trust within their organisations and throughout society.

Edelman's report, which surveyed 8,000 people in eight countries, highlights a crucial link between optimism and employee engagement. Optimistic respondents were not only 20 per cent more likely to exceed work expectations than their non-optimistic peers, but they were also 21 per cent more likely to advocate for their employers and 16 per cent more likely to stay with their organisation for many years. This finding reinforces the deep connection between optimism, loyalty, and performance, underscoring the need for leaders to foster an optimistic culture at all levels of the organisation.

The study survey did not include Australia; however, its truths apply to my country, too.

Edelman's Four-Point Plan for Unlocking Economic Optimism

Edelman outlines a four-point plan for how employers can foster economic optimism and drive productivity:

1. Close the Economic Optimism Gap: The report highlights the stark economic optimism gap between employees at different levels of the organisational hierarchy. Those at the bottom feel only half as optimistic as those at the top. This gap directly affects workplace morale and productivity. Optimistic employees are more likely to invest discretionary effort into their work, benefiting themselves and their organisations. At the Centre for Optimism, we've long observed that optimism is contagious. When leaders are optimistic, that energy spreads throughout teams, fueling innovation and engagement.

2. Upskill to Unlock Economic Optimism: Many employees feel displaced by technological and organisational transformations, leading to fear and uncertainty. Edelman emphasises the need for employers to counteract this through upskilling, ensuring workers see disruption as an opportunity for growth. Flexible skill development helps employees feel more confident about their future, fostering optimism in the workplace. At the Centre for Optimism, we consistently promote this idea: optimism empowers people to view change as a pathway to personal and professional growth rather than something to fear.

3. Act, Don't Talk: One of the strongest drivers of employee optimism is seeing their organisation take real action to impact society positively. It's not enough to talk about change—organisations must demonstrate commitment. Edelman's findings show that when employees feel their employer genuinely makes a societal difference, their economic optimism increases. This mirrors the philosophy we advocate at the Centre for Optimism: actions speak louder than words, and a commitment to societal good builds trust, energises employees, and fuels optimism.

4. Build Trust Through Employers: Finally, Edelman stresses that employers are uniquely positioned to build trust in institutions by fostering economic optimism in the workplace. Employees who feel economically optimistic are more willing to prioritise the greater good and contribute to societal progress. Employers should feel empowered to address societal challenges by improving the workplace experience, reinforcing optimism, and building trust. This aligns with our research that optimistic leaders inspire individual and organisational resilience, driving broader societal impact.

Optimism and Trust: A Symbiotic Relationship

A key takeaway from Edelman's report is the recognition that optimism is the foundation of trust, and trust helps build optimism. In a world where fear, anxiety, and pessimism are often exploited for economic gain, cultivating optimism becomes essential for individual well-being and the health of communities and societies. Trust is the glue that binds people to their organisations. When employees trust their leaders, they are more likely to feel optimistic about their future. This optimism fuels higher levels of engagement and productivity, creating a virtuous cycle of trust and upbeat performance.

Optimism is not only good for individuals—it's essential for building a stronger, healthier, and more resilient society. Trust, built on a foundation of optimism, empowers people to believe in a brighter future and to act in ways that benefit the greater good.

Edelman’s global chair of workplace advisory, Cydney Roach , said “When you close the economic optimism gap, employees become stronger advocates for their employer: discretionary effort soars, employer loyalty increases and trust is strengthened. But there is also a positive benefit to society. With personal economic optimism, civic attitudes surge and trust radiates outwards from the workplace to the marketplace, even helping lift trust across other institutions. So, in an era of constant disruptive change, the role of the employer has never been so critical.”

Conclusion: Optimism as the Driver of Productivity and Trust

The 2024 Edelman Trust Barometer has powerfully demonstrated that optimism isn't just a feel-good trait—it's a vital driver of productivity, trust, and societal progress. By following Edelman's four-point plan—closing the optimism gap, upskilling the workforce, acting to impact society, and building trust—employers can unlock economic optimism and unleash their organisations' full potential.

We would start even more simply. Business leaders can lead by walking around—try this for one week: genuinely smile and say hello to each person you pass. When greeting someone, ask, "What's been the best thing in your day?" Do that every day for a week and see how things change for the better.

In a world rife with fear and pessimism, optimism is the antidote that leads to success, resilience, and a more hopeful future. As optimism builds trust, and trust builds optimism, employers can create a thriving and productive workforce.

The solution I advocate is "The Optimism Principle" - "The answer to life's most pressing questions is optimism."

I asked my co-creator of The Optimism Principle, Robert Masters AM LFCPRA , for his reaction to the intersection of the Edelman study with our Principle based on ten years of research.

Robert told me, "The decline in trust is becoming too repetitive each year. The Optimism Principle provides a sound foundation for reversing this trend. It enables organisations to:

• Build stronger relationships with employees by ensuring they can participate in decision-making,
• Understand that perception is of crucial importance to the credibility and accountability of policies and
• Ensure strategic plans enable societal progress by focussing on improvements in the well-being of people and households based on trusted initiatives, leaders and communication."

What new opportunities do you see from adopting greater optimism within your organisations?