Can treating employees well increase profits?
Does the so-called “Golden Rule” – treating others as you would like to be treated – pay off in the end?
The answer is yes. Owners of successful privately held businesses know that a happy and contented workforce is a critical component of their success.
How do happy employees contribute? Three basic ways.
First, there will be lower employee turnover. This reduces new employee hiring and training expenses. It eliminates the learning curve for new employees.
Second, a well-treated employee is more likely to put in the additional hours to get the job done right. They will work harder for you. Plain and simple.
Third, having a reputation as a good place to work will attract smarter and better candidates for those times when you do have a job opening and are hiring.
Content and happy employees are really about nothing more than focusing on this important business asset. It is fairly common sense, you certainly know how to do this already. But here are some ideas.
First, just show that you – the boss – actually care about the employees. Be flexible and understanding with the employee, if at all possible (and within reason) help if there is a special personal challenging situation. Know your employees’ morale and ask for feedback. If an employee has a suggestion, listen. Give them credit when the idea is good. Reward them for being independent thinkers. Show your people that you respect them.
Invest in training for your best people. A solid core of well-trained employees will maximize effectiveness and profitability but also increase profits. And training an employee sends the message that the person will be an important part of the company in the future.
Fair and consistent employment policies will go a long way to creating contentment. Have an employee handbook that describes policies (though a handbook should be reviewed by an attorney to ensure that no contractual obligations and other legal issues are created).
Job descriptions should be written down. Communicate work assignments and expectations very clearly.
When the company will be undergoing change that may affect employees, communicate that. And remember the old saying “never create more change than you can communicate.”
Treating employees well is good business practice for all businesses regardless of size, industry, or location. It is smart business too and will increase profits. Just take a little time and treat your people as you would want to be treated as if you were in their position.
