How is Maslow's hierarchy relevant to the needs of employees?

This is a guest essay by Ross Judd.

Ross has a Masters Degree in Communication Management, extensive training in NLP (Neuro Linguistic Programming), and works as a successful Business Consultant and Leadership Coach. He has decades of experience helping people connect more effectively through communication.

The essay was originally published as Chapter 3 of Ross’s book, “Cultural Insanity, and the roadmap to great organisational culture” That book was written to right the wrongs of the “culture change” approach and advocate the benefits of engaging people, and keeping the process as simple as possible.

Ross has also written another book:

“Listening, a guide to building deeper connections”. That book offers a practical guide about how to listen in the moments that really matter.

Ross enjoys the great outdoors between consulting assignments and writing his next book on Leadership.

Ross writes:

You are probably familiar with Maslow’s Hierarchy of Needs, as shown in the diagram. It demonstrates that we cannot satisfy psychological needs like ‘self-esteem’ or ‘belonging’ if our physical needs such as food, shelter, and safety have not been met.

This makes sense. It would be hard to talk to someone about self-fulfilment if they hadn’t eaten for two days.

Ross Judd’s Hierarchy of Employee Needs

Maslow’s concept can be translated to organisational culture, and helps us understand what employees need so they can help create a great organisational culture.  

Security needs   

The most basic needs Maslow identified were physiological, meaning the things we need to survive, like food, water, and shelter.

In terms of organisational culture, the survival requirements are salary and job security. If they are threatened we feel like our survival is threatened. It’s not a logical or rational response; clearly someone wouldn’t die if they lost their job. It’s a neurological response based on deep instincts. We will still go to work if these things are threatened, but we won’t be able to think as clearly, or make good decisions.

As an example, think about what happened during the COVID Pandemic. People were worried about losing their jobs and felt like their survival was threatened. As a result they started making irrational decisions – like hoarding toilet paper.

You will find it very difficult to talk to people about culture if they are worried they will lose their job and not be able to pay their mortgage, buy groceries, and satisfy their ‘survival’ needs. And yet, how many companies have enacted redundancies and then immediately imposed a ‘culture change’ program? Are they really expecting people to contribute positively to the business’s culture when they are wondering if there will be another round of redundancies and if they will still have a job in a month?

And what happens if a leader behaves in a way that causes people to feel their job is threatened?

People need to feel secure; if they don’t, everything else is hard work.

Safety needs

The next level is safety. In organisations, this is physical and psychological safety.

People will not participate in improving the culture if they feel their safety is threatened, meaning they feel like they are working in unsafe conditions or there will be repercussions if they speak up.

Leaders need to create a safe place to work if they want to build a culture where people demand and expect the right behaviours from each other.

Psychological needs: belonging and self-esteem

The next two levels are psychological, and won’t be achieved if people feel like their security or safety is threatened.

People need to belong to something worthwhile or meaningful. In organisations, this is experienced as loyalty to the company, a sense of belonging to a team, project, site or company, and feeling that work has meaning.

People will be loyal to a company if they feel secure and safe, but feelings of self-esteem will be enhanced by engaging them in a conversation about the purpose of the company and the culture needed to deliver that purpose.

Any time you connect people with a purpose, you are creating a deeper meaning for their work and they will feel a strong sense of belonging and self-esteem.

Self-fulfilment needs: self-actualisation

The final level is self-actualisation. This is a state in which people relax and perform to their full potential. They are often more creative, innovative and successful.

Maslow’s Hierarchy makes it clear this is only possible when people feel secure, safe, and part of a team that is doing something meaningful.

That makes sense. It’s hard to achieve your full potential if you are worried about things like putting food on the table, repercussions if you speak up, or whether you are accepted by your leader and team.

A strong culture is the essential ingredient that helps people achieve their full potential. People are more creative when they feel the team will accept and explore their crazy ideas, or when they feel like they are doing something meaningful. If people feel threatened they withdraw and will only do what they are told.

Leadership Principles

This hierarchy establishes a set of principles that leaders need to understand and follow to build a positive culture in their organisation:

1.     People need to feel secure.

2.     People need to feel safe to speak up. 

3.     You need to build healthy relationships that create a sense of belonging.

4.     People need to have a sense of purpose and feel their work is meaningful.

5.     Then you will find it much easier to engage people in creating a culture that will help them achieve their full potential.