Balancing the Emotional Ledger: How Can HR Foster Workplace Trust and Engagement?

4 MIN READ | Last Updated on 13 April 2024

 BY: Kanchana Nirupamala (E223799)

Source: (Ludovino, 2017) 

Envision a company culture where emotional richness is created with every connection, trust flows freely, and engagement is the norm. You have entered the workplace of balanced emotional bank accounts! In this workplace, HR is the beating heart of workplace peace rather than just a department concerned with regulations and payments. This blog delves into how human resources may become experts in emotional investment, changing everyday interactions into opportunities to create trust and revolutionizing company culture. 

What is an Emotional Ledger?

The concept of the Emotional Bank Account or Ledger was made famous by the renowned author of “The 7 Habits of Highly Effective People”, Stephen R. Covey (Covey, 2013). We all have an emotional bank account with every individual we collaborate with. The balance of the account reflects the quantity of trust in the relationship. We add to the fund by being trustworthy and doing things that deepen our connection. With our bad words and deeds, we also can drain the trust fund. In a healthy relationship, the good encounters, or "deposits," exceed the bad ones, or "withdrawals." This creates a positive emotional account balance. When the number of negative interactions, or "withdrawals," in a relationship exceeds the number of good ones, or "deposits," the result is a negative emotional account balance. Drawing on Stephen Covey's metaphor of an emotional bank account, this idea represents mutual trust and support among people. Every connection we have—personal or professional—is subject to this rule. 

Deposit and Withdrawals of Emotional Bank Account 

Source: (University of Victoria, 2018) 

Check this Video for better insight on Emotional Bank Accounts.

Source: (The Kintz Group, 2022) 

The Critical Role of Emotional Bank Accounts in Workplace 

As per the State of the Global Workplace: 2023 Report by Gallup (2023), only 23% percent of the world’s employees were engaged at work (thrive at work) in 2022. While 59% of employees were not engaged (Quiet quitting), 18% were actively disengaged (Loud quitting). While South Asia ranks the highest in terms of engagement at work (33%), the lowest is in Europe (13%). Low engagement accounts for 9% of global GDP and damages the global economy to USD 8.8 trillion, according to Gallup (2023). 

Share of Global Employees that are Engaged at Work 

Source: (Gallup, 2023) 

Regional Rankings of Employee Engagement, 2022 

Source: (Gallup, 2023) 

This is not a quick and easy fix. Organizations can do a lot to make their workplaces great places to work, and leadership and management directly impact employee engagement. Organizations that are open to having psychological contracts with their employees in addition to the employment contract are more inclined to create an encouraging workplace where confidence and participation thrive. 

Building trust and rapport via everyday encounters governs the emotional bank account, representing the strength of connections inside a corporation. Each time employees, supervisors, and teams have a good time together, it adds to the emotional bank account of the organization and makes everyone feel more understood and respected. Workplace harmony and productivity result from an atmosphere where positive balances predominate, increasing employee engagement, happiness, and loyalty (Harris, 2023).

Workers with a strong sense of belonging are more invested in their jobs and willing to go above and beyond for their employers, even in times of difficulty. Employees who feel valued and appreciated work harder, which benefits the firm and helps bring in and keep the best employees. 

Employees are more likely to speak their minds, work together, and develop new ideas when they feel emotionally supported at work. This culture of trust and mutual respect enhances the company's agility.

Power Play of HR Professionals in Workplace Emotional Well-Being 

Human resources experts play a vital role in sustaining and expanding an organization's emotional capital, which in turn impacts morale and productivity on the job. 

• Promoting Positive Connections:In order to foster productive interactions between employees, human resources may influence corporate policy and culture. Arranging team-building activities, celebrating milestones, and acknowledging achievements are all great ways to make employees feel good about themselves emotionally.
• Training and Development: Employees and supervisors may benefit from HR-sponsored programmes that teach conflict resolution, communication, and emotional intelligence in order to foster better working relationships.
• Open and Transparent Communication Channels: Human resources need to provide transparent channels of communication whereby all individuals are able to impart and receive criticism. Conflict resolution helps companies maintain a healthy emotional bank account. 
• Fair and Transparent Performance Management: Effective performance management systems are crucial for creating an environment where workers feel appreciated and acknowledged for their efforts. Consequently, this supports the persons' emotional health.
• Supportive Work Environment: A more positive work environment could be the result of HR programmes that put an emphasis on mental health, work-life balance, and general wellness. These programmes have a significant positive impact on employees' emotional well-being.

To Conclude…………….. 

Regular deposits into these emotional bank accounts may help companies create trust, have a positive effect on the world, and limit withdrawals. Human resources play a crucial role in establishing a trustworthy culture by mandating significant and regular deposits. Companies that understand the value of emotional capital in building long-term connections will thrive going forward.

References 

• Covey, S. R., (2013). 7 Habits Of Highly Effective People, New York: Simon & Schuster. [Online]. Available at https://ati.dae.gov.in/ati12052021_1.pdf. Accessed on 20 March 2024. Gallup, (2023).
• State of the Global Workplace 2023 Report: The Voice Of The World’s Employees, Washington, D.C.: Gallup. [Online]. Available at https://www.gallup.com/workplace/349484/state-of-the-global-workplace.aspx?thank-you-report-form=1. Accessed on 20 March 2024. 
• Harris, M., (2023). Emotional Bank Accounts Enhance Employee Engagement. [Online] Available at https://www.mareeharris.com.au/emotional-bank-accounts-enhance-employee-engagement/. Accessed 20 March 2024. 
• Ludovino, E. M., (2017). Emotional Bank Account - Is your balance Positive or Negative?. [Online] Available at https://www.linkedin.com/pulse/emotional-bank-account-your-balance-positive-em%C3%ADlia-m-ludovino/. Accessed 20 March 2024. 
•  The Kintz Group, (2022). The Emotional Bank Account - Deposits vs Withdrawals | Fearless. [Online] Available at https://www.youtube.com/watch?v=hgbF-E4YodY. Accessed 20 March 2024. 
• University of Victoria, 2018. Emotional Bank Account, Victoria: University of Victoria. [Online]. Available at https://www.uvic.ca/hr/assets/docs/working-remotely/getting%20along%20docs/Emotional%20Bank%20Account%20Job%20Aid.pdf.  Accessed on 20 March 2024.