How employee management impacts your business
Small business owners take a huge risk when they launch out on their own. It requires talent, expertise, patience, courage, commitment and long hours to follow a dream. Not only does one have to perform in his or her area of expertise, one must be adept at financial matters, human resources, customer service, business development, marketing, public relations, and social media. Did I mention it requires long hours?
But many small business owners forget all too soon what it was like working for someone else. “I got tired of working for other people and never getting recognized for my work,” and “The demanding hours of the corporate world and the office politics were just too much for me,” are common reasons given by independent operators. Why then do these former disgruntled employees create the same negative environment in their own offices?
So why are these behaviors so detrimental to a business? Gallup has found that disengaged employees cost the U.S. economy somewhere in the neighborhood of $416 billion last year, primarily through lost productivity.
Here are a few examples. After witnessing a public verbal bashing addressed at one employee, the boss justified his inappropriate behavior with, “I can do that because I’m the boss! You’re just an employee.” Another comment from a different boss was, “You work for me, just shut up and do what you’re told.” And then there was the passive-aggressive boss that applauded his employees to their face and complained about them behind their back.
So why are these behaviors so detrimental to a business? Gallup has found that disengaged employees cost the U.S. economy somewhere in the neighborhood of $416 billion last year, primarily through lost productivity. Odds are the recipients of that negative behavior will not be very motivated to engage in applying their skills to the betterment of your business. A high turn-over rate is a warning sign that your management style might need some adjusting.
We’ve all heard or read stories about utopian work environments in companies such as Google, Target, Facebook, and American Express. Chief Technology Officer for the website CareerBliss Matt Miller says, “From both ends of the spectrum, an individual’s happiness at work will create happiness throughout all areas of their life, and likewise a company with a happy, motivated workforce will see exceptional results in its products and services.” Google’s much publicized Googleplex and the company’s culture of creative freedom results in innovation and loyalty to the company. Joe Hewitt, a former mobile developer for Facebook says that the social networking giant was, “the best employer I’ve ever had.” The reason, Matt explained was because, “[Facebook] constantly encourages people to try new ideas and run with them, without any meddling from above. While some projects ultimately require approval before they ship, you can go very long stretches with total autonomy.”
These companies attract the best and the brightest and set high standards. The job market has evolved and these companies have evolved with it. They experience higher productivity because they understand the value of treating employees with respect and the role they play in the business’ overall success. This is not to say that the office needs to be all fun and games or employers need to install lunch counters and game rooms. Small business owners can start by recognizing the talents each employee possesses and allow them to express that talent in the jobs and projects they are assigned. Being the boss doesn’t guarantee that your idea is the best and only option. Be open to feedback from your employees. Fresh ideas could be just what your company needs to launch it to the next level.
