Employees Matter Most: Value Your Greatest Asset and Unlock Your Business Potential

Building Lasting Relationships for Mutual Benefit

Employees are the heart and soul of any business or organization. Without their skills, dedication, and hard work there isn’t a business or organization.  There isn’t success and growth. It's crucial to get real with this honest truth and see your team for what they are – the most valuable asset your company could earn. Today I’ll explore why employees are vital to any business, the high cost of losing them, and how to use communication to build stronger relationships with your team.

Why Employees Matter Most in Business

A business isn't just its products, services, or infrastructure. It's the people who work hard to innovate, produce, and deliver. Employees bring diverse perspectives, creativity, and expertise, helping companies adapt to changes and overcome challenges. Aside from a scientific inability to simply clone yourself, here are key reasons why employees are indispensable:

1. Innovation and Creativity

Employees are the source of new ideas and creative solutions that keep a business competitive. Their unique insights can lead to innovations that propel the company forward. The boots-on-the-ground folks are often the ones with the best vantage point to see opportunities.

2. Operational Efficiency

Skilled employees ensure daily operations run smoothly. Their knowledge and expertise boost productivity and efficiency, which are critical for success.  You feel it deeply when core members of your team are on leave.

3. Customer Satisfaction

Employees interact directly with customers, shaping their experiences and perceptions of the company. Engaged employees are more likely to provide exceptional service, leading to higher customer satisfaction and loyalty.  Customer service personnel are the relationship that binds your customer to your business – worth its weight in gold.

4. Organizational Culture

Employees help define and maintain the company's culture. A positive, inclusive, and supportive work environment fosters collaboration, motivation, and a sense of belonging, enhancing overall performance.  Culture comes from the people, not from documents and fancy meetings.

The High Cost of Losing Employees

Employee turnover is a significant challenge for businesses, with costs extending beyond often substantial financial impact. Here are some profound consequences:

1. Recruitment and Training Expenses

Replacing an employee involves substantial costs, including advertising, interviewing, and onboarding. Training new employees to reach prior productivity levels can be time-consuming and expensive.  Next time you hire, count how many hours are invested in: writing a job posting, responding to inquiries, reviewing resumes, scheduling interviews, holding interviews, debating interview candidates.

2. Loss of Institutional Knowledge

Experienced employees possess valuable knowledge that's difficult to replace. Their departure can disrupt workflows and processes and even bring work to a halt.  New employees or those trying to cover departures are at a loss for how to maintain the status quo when these valuable insights are lost.  As an employee, institutional knowledge is priceless.

3. Decreased Morale

High turnover negatively affects remaining employees' morale, leading to increased stress, reduced engagement, and a sense of instability.  Low morale crushes productivity, increases departures, and can impact your business for a significant period of time. 

4. Impact on Productivity

Skilled employees' departure hinders productivity. New hires may take time to reach proficiency, and turnover disrupts operations.  Not to mention that onboarding and training new employees distracts from other work.

5. Reputation and Customer Trust

Frequent turnover can damage a company's reputation and erode customer trust, leading to a decline in loyalty and sales.  Once you lose a customer, you’re unlikely to ever get them back.

Building Strong Working Relationships

To mitigate turnover costs and harness workforce potential, companies must build strong, lasting relationships with employees. This involves creating an environment where employees feel valued, supported, and motivated to stay long-term. Key to these relationships is open, honest, and frequent communication.  Employer/employee conversations should tackle the following topics.

1. Effective Communication

Communication is the cornerstone of any successful relationship. Foster open and transparent channels to ensure employees feel heard and understood. Regular feedback, recognition, and addressing concerns promptly enhance satisfaction.  Encourage it, do it, reward it.

2. Professional Development

Investing in employees' growth is crucial. Providing training, skill enhancement, and career advancement opportunities show commitment to their success and well-being. Regularly discuss how development opportunities can strengthen an employee’s performance and abilities.

3. Work-Life Balance

Promoting a healthy work-life balance is essential for retention. Flexible work arrangements, wellness programs, and encouraging time off help manage stress and maintain productivity.

4. Inclusive Culture

Creating an inclusive and diverse workplace fosters a sense of belonging. Valuing unique contributions and perspectives drives innovation and collaboration.  Don’t just put it in your corporate documents.  Live it and breathe it.  A truly inclusive culture makes people feel valued, seen, and heard.

5. Competitive Compensation and Benefits

Offering competitive compensation and benefits packages is fundamental. Everyone who works for you should feel fairly rewarded – without comprehensive benefits and compensation, employees have little reason to stick it out for the long haul.  Someone else can make them a better offer.

The Valuable Role of Communication

Effective communication between employers and employees,

especially concerning onboarding, performance, and organizational change, is crucial. It makes all the difference in building a cohesive and productive workforce.  I’ll touch more on each of these communication moments in other articles. 

1. Onboarding

Clear communication during onboarding ensures new hires understand their roles, responsibilities, and company culture. Proper onboarding sets the tone for their future engagement and success within the organization.  You can make or break the first few months with a new employee, right here.

2. Performance

Regular feedback and open dialogues about performance help employees know where they stand and how they can improve. This fosters a culture of continuous growth and development, enhancing overall productivity. 

3. Organizational Change

Transparent communication during times of organizational change helps employees understand the reasons behind the changes and their impact. It reduces uncertainty and resistance, ensuring smoother transitions and maintaining morale.

Conclusion

Employees are the backbone of any business or organization. Their contributions, skills, and dedication are vital to success. Recognizing their importance and investing in strong working relationships can mitigate turnover costs and drive growth. You have to prioritize employees' well-being and satisfaction to build a culture that recognizes their contributions.  And, once you start down this path, you’ll be building a foundation for long-term success.