Treat employees right to make profits take flight

By Iain Macfarlane

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Many business owners are not satisfied with how their businesses are running, the profit they're making, the grumbling and turnover of their employees, and having to deal with disgruntled customers. So where do they tend to focus to improve their business performance? They frequently blame their employees for not doing their jobs well enough.

Owners frequently say the relationships among staff members is poor, with infighting, bickering and feuding eroding productivity. When there's an indication that customer service is not good enough, the owner will tend to blame the employees.

But the problem may be in how the business owner treats employees.

In his book, "The 8th Habit, from Effectiveness to Greatness," Stephen Covey has said that in the business setting, many people feel frustrated, discouraged, unappreciated and undervalued - with little or no sense of voice or unique contribution. In this book he deals with such common dilemmas as:

• People want peace of mind and good relationships, but also want to keep their lifestyle and habits.

• Relationships are built on trust, but most people think more in terms of "me" - my wants, my needs, my rights.

• Management wants more for less; employees want more of "what's in it for me" for less time and effort.

• Businesses are run by the economic rules of the marketplace; organizations are run by the cultural rules of the workplace.

The differences in how managers and employees weigh job factors were highlighted in a recent study conducted by the New York State Department of Labor Relations. Managers were asked to rate from 1 to 10 how important they felt designated factors were to their employees. Employees in the same companies were also asked to rate the importance of the same factors. The results differed dramatically.

Note how the lowest three factors in order of importance as perceived by the managers turn out to be the top three factors of importance by the employees. I consistently find that the most critical issue holding back companies from moving to a higher level of success emanates from this discrepancy of owners' views as to what motivates and keeps their employees happy.

The following seven actions by a business owner will address the three factors that their employees consider the most important factors that they look for to be happy in their jobs:

1. Always smile, even when you are talking to an employee on the phone.

2. Be interested in your employees, both professionally and personally. Have the business provide opportunities for social activities, sometimes including the employees' families, and have fun.

3. Talk in terms of the employee's interests: "What is your opinion?"

4. Use employees' names and be aware of their role in the company.

5. Give compliments, and note the use of the most powerful of all words, "you."

6. Listen and hear. Provide feedback as to what you heard from the employee.

7. Make the employee feel important.

Stephen Covey in The 8th Habit states "Only 17 percent of workers surveyed feel that communication in their organizations is truly open, candid and respectful."

Apply the seven actions listed above and you'll create a foundation to take your business to another level through your most important asset, your employees.


Iain Macfarlane is the president and founder of BizCOACHING & Associates in Madison, a franchise of Action International. He was named "Coach of the Year 2005."
iainmacfarlane@action-international.com

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