Fostering Workplace Happiness: Insights from Lanco Medical Group’s Growth Strategy
The Importance of Happiness at Work
The saying, “Find a job you love and you’ll never work a day in your life,” highlights an ideal that many strive for, yet emerging research reveals a decline in job satisfaction since the pandemic. According to Pew Research, happiness at work has tangible benefits, including increased productivity, improved health, and enhanced problem-solving skills among employees. This ultimately leads to lower absenteeism, higher retention rates, and better customer satisfaction, contributing positively to a company’s financial performance.
Introducing Lanco Medical Group
In a recent case study at Harvard Business School, Professor Susanna Gallani discussed Lanco Medical Group, a pharmaceutical intermediary operating mainly in Central and Latin America. Founded with a mission to “deliver health,” Lanco began by servicing government contracts before expanding its reach to include private distributors and developing its own generic medications. Currently, the company employs approximately 55 individuals, with plans to double its workforce within the next year as it explores various market opportunities.
Pioneering Happiness for Growth
At Lanco, leadership has adopted a strategic focus on employee happiness as a foundational element for scaling their operations. This approach is essential, given their target market is characterized not only by lucrative opportunities but also by significant risks and uncertainties. As co-founder Lissete Hermida indicated, ensuring their employees find joy in their roles is not merely a perk but a vital aspect of attracting and retaining qualified talent, particularly in diverse geographical and regulatory environments.
Measuring Employee Happiness
To assess employee well-being, Lanco partnered with a third-party provider, Mide La Felicidad, which created a unique survey that measures not only job satisfaction but overall happiness in life. This dual perspective underscores the interconnectedness of personal and professional happiness. Through initial surveys, Lisedete and her team discovered mismatches between what they thought would make employees happy (like healthcare benefits and company trips) and what employees actually valued.
The Evolution of Insights Through Surveys
Following the first survey, Lanco’s leadership learned that their goodwill gestures were sometimes perceived as entitlements rather than appreciated benefits. Subsequent iterations of the survey revealed persistent unmet needs, including a call for improved financial education—something Lissete recognized as a pressing issue affecting her workforce’s overall happiness and productivity.
Addressing Employee Needs
Facing initial discomfort at the survey results, Lanco’s leadership engaged in open dialogues with employees to better understand their needs and preferences. This willingness to listen and adapt demonstrates an essential leadership quality that fosters trust and encourages a culture of transparency, making it possible for employees to candidly express their desires.
Cultural and Regulatory Challenges
Operating across different countries means Lanco must navigate not only cultural variances in employee expectations but also differing regulatory obligations. As Lissete noted, this complexity can deter companies from fully addressing employee satisfaction. Despite this challenge, her goal is to instill a supportive and dynamic work environment that enables team leaders to motivate their members effectively by leveraging shared core values.
The Path Forward and Key Opportunities
As Lanco pursues its ambitious growth plans, the crucial question remains: how to scale a culture of happiness amidst rapid expansion? Professor Gallani emphasizes the importance of decentralized leadership, where individual managers can adopt motivational practices inspired by Lanco’s core values. This adaptability will be critical as employee needs evolve over the course of the company’s growth journey.
Conclusion: The Interdependence of Happiness and Performance
The case study of Lanco Medical Group highlights an essential truth about the workplace: “Happy people do good work that satisfy customers that give us money to meet our financial goals,” as noted by Susanna Gallani. Fostering a work environment that prioritizes employee happiness not only enhances individual satisfaction but also contributes to the overall success of the organization.