University of Newcastle's Australian Workplace Index to examine what makes a good workplace

University of Newcastle Professor Christina Boedker will lead the Australian Workplace Index, which is set to launch on Wednesday.

The index is a joint initiative with the Australian National University.

Professor Boedker said the index would consider "what employees need in the changing environment, coming out of COVID".

It will examine ways to reduce staff turnover, with a focus on the need to engage people on intellectual and emotional levels, rather than simply money.

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The Index will measure and report on: workplace productivity, leadership capability and staff wellbeing.

She said it would "support businesses to become more competitive".

"It will also look at the mental health and wellbeing of employees."

The pandemic has reshaped workplaces, with many people working from home and others leaving jobs in the so-called "great resignation".

Professor Boedker said people being laid off or having to work harder were also factors during COVID.

She said 100 organisations in the Hunter Region will be invited to pilot the workplace index early next year.

"We'll give them benchmark information on job demand and resources and employee mental health and wellbeing, so there's an incentive for them to participate," she said.

Professor Boedker will lead a research team of 14 people from areas such as finance, marketing, human resources and economics.

"The aim is to get different insights and perspectives in the workplace," she said.

"We're looking to establish what is a good workplace, what makes a high performing workplace and what's the shifting landscape," she said.

The index will consider the workplace from an employee perspective, "not just in terms of the employer maximising profits and productivity".

Leadership capability is also on the radar.

She said some companies still used a "top-down approach" in which "individuals are left to not really realise their potential".

"And they're not really given the opportunity to lead things. Leadership is not just about the heroic CEO - it's much more of a dispersed activity.

"It's about motivating, supporting and empowering individuals to be the best they can be and giving them the opportunity to do that."

She said there was a lot of employee turnover, especially in large organisations.

There could also be "a lot of control", entrenched with workplace infrastructure.

"I think that's detrimental to the wellbeing of the employees and the overall performance of the workplace."

Leadership challenges would emerge as society returns to levels of freedom.

She said this related to "emotional capital and affiliation".

She believed some workers had become disengaged during the pandemic.

"There are different levels of commitment," she said.

"You have the financial rewards, but a more powerful way to motivate people is through emotional commitment and engagement."

The isolation of the pandemic meant some of those elements had been lost.

"There's a separation. People are feeling more lonely than ever before. It is casting a long shadow. I think there's a lot of repair work to be done."

She said the emotional side of the workplace related to "the different ways to motivate people".

"If you look at psychology theory, if you pay people higher salaries, you might attract better people or retain people and reduce turnover.

"But for most people in today's knowledge society, it's about engaging them intellectually and emotionally."

This was related to having "a sense of pride in working for the organisation".

"You're aligned with their brand values and exert extra effort because of that emotional connection you have.

"So you start work in the shower in the morning. You start thinking and your mind is constantly ticking about what you'll be doing today and you can push things forward. So there's a different level of commitment."

This approach to motivating people was based around "identity, a sense of self, affiliations and relationships".

"I think that's what we've lost to some extent in going through COVID. Where the isolation has kicked in, that emotional connection has been lost or reduced. It's a very different workplace we're going into, post-COVID."

Working from home had big benefits.

"Some people said their productivity increased because they didn't need to put makeup on, or work out what to wear. They just pop in front of the computer and start work.

"But I do think it's relationships that drive society. There's only so much you can do on a telephone or Zoom call. Eighty per cent of communication is non-verbal. We're missing out a lot on that whole aspect of connecting with people.

"Things become more superficial and fast-moving. We're losing some of the depth of relationships and maybe even quality of work."

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