Friday, November 09, 2012

More Proof That Treating Employees Like Humans And Not Machines Is Good For Business

Source: http://www.businessinsider.com/why-you-should-treat-employees-well-2012-11

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How much effort and feeling employees put into their job  is one of the most important things for a company. When everybody's engaged and works hard rather than just punching a clock, companies succeed.

A new study from found that companies that use new style, "sustainable" engagement practices have operating margins of 27.4 percent compared to 14.3 percent for those that use old school methods that focus on the company's goals, and 9.9 percent for companies that ignore engagement. 

That's a huge difference in efficiency and productivity. 

Here are three of the things that the most engaging companies focused on:

Healthy work environments

Stress is a great motivator, but it has a dark side in a high pressure economy. Organizations that that have leadership that shows a sincere interest in employee well being, actively manage and ask about work loads, hire enough people to get the job done instead of working a few to the bone, are open and clear about goals and expectations, provide flexible schedules, and actively intervene when they see high stress levels were the most successful. 

There's a literal component to this too, companies that focus on providing a physically comfortable environment that supports things like a good diet and exercise see a boost as well. 

A high standard for leaders 

Companies need to evaluate managers on how they interact with their employees as well as on financial performance. The most engaging managers designed tasks for workers unique skill sets, followed through on! their w ords and commitments, are respectful, and spend a great deal of time coaching and improving employees.

Focus on image and company goals 

Employees pay attention to the external image of the company. They're more engaged when the company is publicly respected, shows honesty and integrity, and acts in a way that's consistent with the core values workers are taught. Also important is having leadership that puts effort into making employees aware of how they specifically factor into the companies image and goals. 

Here's the breakdown of how these new management practices impact performance: 

Engagement

Read the full study here

NOW READ: Four Ways To Keep Employees From Losing Motivation

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