When profits are down, business leadership often makes up for that shortfall at the expense of employees. They may freeze wages, cancel bonuses, or eliminate perks. At the same time, they often expect employees to intensify their efforts.
Additionally, leadership may sacrifice customer experience. This is often justified with claims that it’s necessary to boost revenue and cut expenses.
All of these choices are demoralizing for workers and frustrating for customers. Fortunately, things are starting to shift — and many companies are now putting people before profits. Keep reading to find out why and to learn some improvement strategies for businesses that want to make similar changes.
Why are people-first approaches getting more popular?
Businesses are making this change for several reasons. First, consumers are demanding it. Price and quality may be key considerations, but customers also want to buy from companies that share their values. This means:
• Paying people well and offering attractive benefits
• Committing to environmental stewardship
• Caring for the community
Customers are also demanding that companies deliver better experiences. All of these developments have led leaders to realize that more stakeholders are involved in business success than just the investors. People are the key input ingredient to any business. Hiring quality people and taking care of them leads to more customer engagement and satisfaction which ultimately leads to more profitability.
People-focused improvement strategies for businesses
A company can experience long-term success if it has employees who are engaged and happy, customers who are proud to be associated with it, and a community that believes it adds value. Doing the right things for the right reasons follows the laws of attraction and brings into our personal realities the things we desire. Focusing on quality outcomes, whether that’s a customer engagement or a relationship, leads naturally leads to profit. Here are some strategies to achieve that success:
• Create a social responsibility statement and ensure your policies reflect it
• Audit and improve diversity efforts
• Build a pro-employee culture
• Collect employee feedback and act on it
• Review salary and benefits schedules
• Offer workers autonomy and flexibility
• Hire for cultural fit
• Train leaders to manage for outcomes, not processes
• Make a commitment to improving sustainability
• Create initiatives to give back to the community
People before profit aren’t just nice words it is a time-tested philosophy that works. As you make modifications, remember that small, permanent changes over time will have more impact than major shifts that can’t be sustained. When we focus on adding value and serving others the profit always follows.
Looking for more insights on balancing people with profits in your organization? Connect with Jayson Meyer today.