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HR.com - Business Leadership in 2002: BBringing Back the asics: Trust, Respect and Profit
HR.com
By Dianne Durkin
Overall trust in executive and corporate management is the lowest it's been in years. Polls have reached varying figures however it is safe to say that more than 60 percent of American employees do not trust executives. And who can blame them? With the fall of corporate giants, and multiple rounds of layoffs that have occurred in the last six months, the general mental state of employees is one of fear and disillusionment. As a consultant and trainer who has listened to hundreds of employees at of some of the nation's largest companies, I have learned that when layoffs loom, employees tend to be more focused on finding secure work than they are on customer relationships and productivity - key items for a company trying to increase productivity and profits. This creates a downward spiral of self-fulfilling prophecies that leaves more people unemployed and corporations with slipping profit margins.
At times of economic insecurity, it is even more important for businesses to have secure foundations of honor, trust and respect among employees. For this to happen, executives and managers must trust and value their employees first. This means listening to their ideas, incorporating their suggestions into corporate systems and making them a part of the corporate mission. Employees who are valued for their work, well trained, inspired to take on new responsibilities, and treated with respect will be more fully engaged in their jobs and happier at work.
A recent Gallup study that reported the 12 criteria by which employees judge their place of employment ("The Twelve Dimensions of a Great Workplace," Dec. 2001), found employees who thought their workplace was "great" received recognition and praise for their work, were encouraged to develop professionally, and were treated with respect. Financial compensation was not listed among the 12 most important workplace attributes.
These are simple human nature, and frankly the same principles that we follow in our private lives. We trust those who trust us. Friendships and intimate relationships are built on mutual respect. That businesses are run without taking these basic human psychological truths into consideration would be comical if it wasn't so detrimental to the economy!
Part of my work is to help executives create better operating systems and corporate environments that are conducive to employee loyalty, thus reducing costly employee turnover and increasing overall corporate productivity. In the beginning of this process, I often poll employees to find out how they rate their managers. I recently received an unusually high rating for a top-level executive at an international Internet service provider and so I dug deeper to find out what made this manager so efficient and well respected by his staff. Here is what they said:
"Craig works from the positive. He is ethical, compassionate, and helps others achieve their goals," one team member said. Another credited his boss for giving others the opportunity to succeed and for sharing the limelight.
One woman wrote that she admired her boss because he was always striving to be better at his job and this inspired her to do the same. "He leads by example, but doesn't direct us," she wrote in her evaluation. "He'd never ask us to do something he wouldn't do."
A third wrote, "He is honest and upfront. I trust him and want him to respect me and my work."
Finally, one reviewer highlighted perhaps the greatest strength a manager can have. "He knows what he is not good at and finds help in those areas. He distributes the power and gives credit where credit is due."
Achieving the respect and loyalty of employees is crucial to the success of any company. This manager not only earned the respect of his team, but he earned the respect of his superiors due to his team's productivity. Finally, customer satisfaction increased from 79 to 93 percent in one year under his management.
Most business leaders who take the following steps to enhance their staff's commitment and enthusiasm for their work can achieve this success story of increased productivity and profit margins.
Engage Employees in the Corporate Mission
Hold regular meetings during which all employees can discuss how the company is doing and welcome suggestions on what can be done to increase its success. Discuss their perception of the company, how it makes a difference in people's lives, and how each employee enables the company to provide its unique service. When people are connected to the company mission they feel more responsible for helping to achieve corporate goals. Revise internal structures to engage employees as members of the team responsible for increased revenues and profitability, and rebuild corporate systems to recognize and value all employees for their ideas and contributions.
Listen To Your Staff
Seek employees' opinions about how to improve procedures and systems, engage them in developing new processes, and take their advice! Often employees on the bottom of the corporate structure have a different view of the corporation than do the executives at the top. Their insights and support can be invaluable to the to the future growth and success of the organization.
Invest in the Team
Investing in employee training is a sound way for a company to increase employee efficiency, corporate morale, employee loyalty, and ultimately profit margins. Even when budgets are tight, an investment in employees is the best investment a company can make. Employees feel respected and valued when employers invest in their professional growth, which they give back to the company in terms of productivity, commitment, and enthusiasm for their work. Their renewed positive energy is spread to colleagues, enhancing morale across department lines.
Going back to basics in uncertain times is the most progressive action leaders can take. Forgo new technology, if finances dictate, and invest in the people. Businesses that focus on their corporate purpose, mission and values, and respect and engage employees, will thrive and help strengthen the American economy.