Today’s post features CAI’s Director of Member Development, Doug Blizzard. In this video, Doug dives deep into the topic of positive people practices and how they have a substantial effect on company success. Doug points to a Cornell study that found that companies implementing effective people management strategies experienced 22.1 percent higher revenue growth, 23.3 percent higher profit growth and a 66.8 percent reduction in employee turnover.
Sounds like this should be easy, right? Positive people practices, lead to engaged employees, leading to better business results. Doug says wrong. According to recent research, nearly two-thirds of US employees aren’t fully engaged at work. Doug lists the following reasons as to why some employees aren’t as engaged: asking your team to do more with less, passing business costs to employees and not giving proper management training.
Despite the less than thrilling numbers on engagement, some companies are able to achieve high-performing workplaces. Doug says they get there without above market compensation, better benefits, or flip flop Fridays.
How do they do it? He gives three reasons:
Create a compelling vision for the company
Define why your company exists and communicate that clearly to your employees. Doug says a strong company vision is magnetic and motivating. The why is what compels people to want to work for you rather than just having to work for you.
Build a culture for the 95 percent
If your people practices are weak, you will not build a high-performing organization. He says that a company’s people systems can build, support or destroy a winning culture. In the video, Doug asks you to take an honest look at your people policies. Are they designed for the 95 percent of employees that want to do a good job or for the 5 percent that misbehave? Try designing for the 95 percent and you’ll likely see company morale, employee effort and performance improve. Doug says the 5 percent will leave or you’ll help them leave.
Practice positive management everyday
Doug says that front-line manages are the most critical link for almost everything your employees do. Most people quit their supervisor, not the company. Research finds that poorly managed work groups are 50 percent less productive and 44 percent less profitable than well-managed groups. Make sure your people managers are effective and watch performance improve, he says.
For additional guidance on achieving a high-performing workplace, please contact Doug Blizzard at 919-713-5244 or Doug.Blizzard@capital.org.