Is Richard Branson Right? ‘Take Care of Your People and They’ll Take Care of Business’
You’ve, no doubt, heard the phrase. But is it true? Is taking care of your employees really the path to business success? Let’s dive headfirst into the numbers and data to decide.
These days, especially with the COVID-19 pandemic, a lot of companies are investing in “self-care days” and working to create more people-centric organizations. While this sounds lovely and we all want to feel that work-life balance is real, does this really breed better outcomes at the business level?
In short, yes. Studies show that companies that focus on employee wellbeing and health experience 26 percent fewer mistakes, 22 percent higher productivity, 41 percent lower absenteeism, and 30 percent stronger customer satisfaction than other businesses, says Kris Boesch, founder and CEO of Choose People and author of Culture Works: How to Create Happiness in the Workplace.
So how do we get there? Well, there’s one big piece of the puzzle that seems to have more impact than most others. Supportive leadership. In Tony Schwartz’s and Christine PorathIt’s incredibly popular article “Why You Hate Work” their research found that “employees who say they have more supportive supervisors are 1.3 times as likely to stay with the organization and are 67 percent more engaged.” Additionally, Gallup found that “the behaviors of highly engaged business units result in 21% greater profitability.”
Twenty-one percent is no small number! And, it turns out that developing supportive leaders is well worth the investment. One study found that leadership training yields about a 415 percent ROI for the money spent per participant.
What does “supportive leadership” look like? Here are some of the key takeaways from our research:
1.Cultivate an Engaged Culture
Company culture is strongly correlated with employee happiness. And, of course, not every happy employee will be engaged. But it’s nearly impossible to be an engaged employee if you’re unhappy. When we’re talking about culture, we don’t mean pool tables and shuffleboard. We mean trust among employees, willingness to try new things and innovate, team orientation, etc. Don’t just buy a foosball table and call it a day. This one takes time and hiring the right people.
2. Invest in Development
Studies found that 60 percent of millennials would take a job at a company that offered opportunities for growth before they accepted an offer at a place that offered regular pay raises. Investing in employee development is a big one and if you can’t afford something like conferences or regular advancement, think about internal mentorship programs, book clubs, job sharing, and other ways to allow employees to build skills and grow.
3. Ask Them How It’s Going
On a regular basis ask your employees what they think. This doesn’t mean that you have to make every little change that comes in, but talking with employees whether 1:1 or anonymously in a survey allows you to gather inputs and then communicate the outcomes in a way that aligns with what you’ve heard from them - whether in their favor or not. They’ll feel heard and you’re making a more informed decision.
4. Allow for Autonomy
You’re smart and capable. You’ve hired smart and capable people. Allow them the space and freedom to showcase those talents and leverage them for your company. If you are micromanaging your employees, not only are you driving them away, you’re saying just as much about the confidence you have in your own abilities.
Building an engaged culture starts with trust. This doesn’t mean letting everyone work when and how they want if your company has certain requirements or not caring about the outputs, but it does mean not playing overlord on their every move. Accountability is a part of trust. Hold them accountable to the outcomes, not the “how”.
5. Recognize A Job Well Done
Consistency combined with authenticity is key for this one. Recognize great work that goes above the standard often but authentically. People want to be appreciated and applauded when they go above and beyond.
This will show the rest of your organization what great work looks like and what to strive for, while ramping up the production of the team to push for more, better work.
But ensure it’s not empty. People can see right through shallow compliments and future rewards will lose their power.
It’s the leaders of people-first organizations that make their company successful. When people feel valued and supported, they want to work harder, innovate more, and be a better, more engaged team member. They want to show they care about the people and business that cares about them.
But, this work is not just about saying the right things or creating a committee. It’s about bringing to life real values and cultures that shows the importance of humble, empowering, and nurturing leadership. As you can see it’s not easy, but both in people and in profits, it’s worth it.
At Clover Collective, we pride ourselves on striving for a great culture both for our team and for our clients. It’s something we use as a measuring stick in every decision we make, “Will this support or diminish the culture we want to build?”. We are far from perfect, but we strive for evolution and growth. We would love to bring your brand into the fold of this great community we’re building. Reach out to find out more.