Self-actualized companies are created by leaders and employees who continuously work on improving themselves to reach the top of their needs pyramid. Know the importance of this need for self-actualization, how to reach this state, and how you can help your team reach it as a business leader.

As defined by the American Psychological Association (APA), self-actualization is: “the complete realization of one’s potential and the full development of one’s abilities and appreciation for life.” And if you’ve ever gone over the well-known Maslow’s hierarchy of needs, you’ll remember that self-actualization was placed at the top of the pyramid, in that to attain it, one must fulfill the previous needs- psychological, safety, belonging, and self-esteem needs. Maslow’s hierarchy can be applied in business too. Business leaders who can see the big picture are more likely to reach success and self-actualization as individuals or for their businesses. 

Self-actualization at the workplace occurs when employees are personally appreciated and professionally fulfilled. They become part of an inclusive corporation where they are personally aligned with the company’s mission. Achieving self-actualization is not as easy as it sounds, especially because turbulence happens in every organization. That’s why it’s essential for leaders to be prepared to take action during crises and know what growth stage their company is facing. 

For startups, culture change is natural — and necessary. Startups consist of a small group of passionate people who do everything. And “everything” is constantly changing. To step up their business game, startups must be self-actualized, which does not happen by coincidence. Self-actualization begins with management improving its own actions, then committing to creating a healthy culture through encouraging feedback in the organization. For some companies, social responsibility is part of their strategy to reach self-actualization by marking itself as a moral compass. This is not about generosity, it’s about fulfilling the needs of others. Companies brave enough to shift their focus and fulfill lower-level needs when necessary are closer to success. Understanding the business hierarchy and investing in systems and technologies that help them reach each level of the hierarchy is a great way to start.

Importance of self-actualization for the team and company

We spend about one-third of our lives at work, and that’s why our work environment and career can highly impact our ability to reach self-actualization. Some facets of self-actualization in the workplace are within the employee’s control. For example, reaching self-actualization may become harder for an employee who chooses to pursue a career in sales while being aware they struggle with rejection which makes it more challenging for them to meet their safety and esteem needs. While most people look for jobs to define their purpose, it’s the opposite of what should ideally happen. People must be aware of their purpose first and then look for jobs to fulfill this purpose. That’s why the responsibility of leaders and managers increases to help their employees find their purpose, work toward self-actualization, and eventually reach a self-actualized company.

Self-actualized employees can benefit the company and the teams in several ways:

• Boosts productivity
• Raises company loyalty
• Strengthens employee engagement
• Lowers turnover rate in the company
• Increases employee contribution to company growth by generating innovative ideas

How to help yourself and your team reach self-actualization 

Before visualizing your company succeeding in the business world, you must first feel fit to lead because your business is an extension of yourself. The more you invest in your growth as a leader or entrepreneur and keep showing consistent improvement, the more likely your team will do the same because they consciously and subconsciously watch your behavior.  

Reaching self-actualization as a leader/entrepreneur:

Before visualizing your company succeeding in the business world, you must first feel fit to lead because your business is an extension of yourself. The more you invest in your growth as a leader or entrepreneur and keep showing consistent improvement, the more likely your team will do the same because they consciously and subconsciously watch your behavior. 

Accept yourself with all your flaws
Self-actualized leaders are self-accepting of themselves and others – employees, colleagues, vendors, and customers. Showing compassion, empathy, and kindness toward others allows you to have realistic expectations. This aids in preventing disappointments and promotes a positive and productive work environment.  

Have a purpose and follow it
Self-actualized leaders don’t get paralyzed  by small inconveniences. Focus on your purpose and business mission and take action towards them. 

Practice gratefulness
Self-actualized leaders have an appreciation for the world. Stay thankful to your team for supporting you in running your business while enjoying the simple things in the work process. Don’t hesitate to acknowledge your appreciation to employees who complete their jobs well.  

Self-actualize constantly.
Self-actualized leaders know that reaching this stage is not the end of the game. Self-actualization is not a destination, it’s a challenging process. Constantly work toward being your best without settling for mediocrity . According to Maslow, you can self-actualize your potential in any amount and at any time. 

Helping your employees reach self-actualization:

The business application of Maslow’s self-actualization need involves giving employees a chance to be creative, to reinvent, and to support senior leadership. 

Promote open communication
It’s important for leaders to incorporate open communication by creating an open environment throughout the organization. This goes beyond the well-known “open-door” policy adopted in organizations, and it helps have employees and leaders on the same page. When an employee can easily and effortlessly communicate their thoughts, concerns, and suggestions, this fosters their engagement and trust. As a result, this can help them reach their safety and esteem needs and eventually reach self-actualization. 

Finance purposeful social activities
Social activities don’t have to be a Saturday picnic at the part that most employees won’t attend anyway. Instead, try incorporating social activities during a long lunch and make it exciting. When team members are engaged in a stress-relieving experience, they start building solid relationships with their coworkers and grow a sense of community which helps them meet their need for belonging and climb toward self-actualization. 

Design positive feedback programs
These programs allow a direct and transparent connection between employees’ contributions in the workplace and the company’s goals that lead to reaching the esteem needed in the hierarchy. For example, make use of feedback platforms that encourages instant dialogue between employees and their manager. Employees that receive positive feedback on their work and performance will instantly feel a boost in their productivity. Also, this helps create a positive company culture. 

A self-actualized company consists of a self-actualized leader and employees. Successful companies are the ones who actively listen to their employees, empower them, and make sure they know their responsibilities well. 

Work to satisfy your self-actualization needs as a business leader/entrepreneur while supporting your team to reach theirs too.