Work Matters S5E6: Ellen Frank-Miller - Job Quality

WorkMatters

In this episode, Thomas and Ellen Frank-Miller, the founder of the Workforce and Organizational Research Center (WORC), explore the topic of job quality.

Ellen explains the mission of WORC - creating an economy where every worker has a job worth having, and shares insights from a comprehensive review of over 3,000 peer-reviewed articles on managerial and organizational science. She highlights key job characteristics such as perceived support from the organization, supervisors, and coworkers, as well as autonomy, wages, benefits, and opportunities for representation. These factors are strongly correlated with human capital metrics like turnover intention, engagement, and burnout, which in turn affect financial performance.

Exploring the linkage between frontline job design quality and business results, Ellen shares findings from a study funded by the Ford Foundation’s that looked at human capital management in private equity. Contrary to the initial belief that human capital management in private equity focuses solely on executive search, the study revealed that value creation often depends on roles at the bottom of the org chart. Ellen shares an example where a private equity firm had to focus on improving job quality for truck drivers to retain them and support business expansion, underscoring the critical role of frontline workers in achieving business success.

The conversation also touches on the challenges of measuring and improving job quality, especially since factors like turnover and engagement don't appear directly on financial statements. Ellen introduces the Worthwhile Jobs Index, a diagnostic tool developed by WORC to help companies identify strengths and opportunities in their human capital. This tool provides a quick, actionable assessment of job quality, allowing companies to track progress over time and correlate improvements with financial performance. She also points out that while there is ample evidence supporting the benefits of high-quality job design, many organizations struggle to invest in this area due to capacity constraints and a lack of prioritization. She emphasizes the need for a shift in perspective, treating workforce issues as operational problems that can be systematically addressed.

She stresses that improving job quality requires a holistic approach and a commitment to understanding and addressing the needs of workers at all levels of the organization, and suggests several resources for leaders looking to improve job quality. Ellen concludes with encouraging leaders to start small, focus on achievable changes, and communicate effectively with their workforce to build momentum for larger improvements. She highlights the importance of senior leadership support in driving these initiatives and the need for a proactive, data-driven approach to job quality.

To learn more about Ellen and WORC, please visit https://www.worcimpact.com

The following links provide additional information about the work Ellen and her team are doing and why private equity firms are starting to pay attention.

https://impactalpha.com/the-next-frontier-of-private-equity-value-creation-better-jobs-for-frontline-workers

https://impactalpha.com/blackstones-embrace-of-employee-ownership-signals-a-shift-in-private-equity-and-in-the-power-of-workers/