Posts Tagged ‘employee loyalty’

Employees Matter More Than Customers

Monday, May 31st, 2010

As I work with organizations, I generally ask, “Who is more important, employees or customers?”

In most cases, they say “customers.” Customers are the reason for their business; their goal is to satisfy their customers. I disagree.

Okay, this is really a trick question because ultimately organizations must be customer-focused. But the point is that in order to do extraordinary things for your customers, you must have extraordinary employees. So build an employee-focused culture first to create your customer-focus.

Employees who are not engaged, capable and passionate about their work will not connect in a way that will inspire customer loyalty. Loyalty matters, satisfaction does not. Organizations need employees to do extraordinary things to move customers from satisfied to loyal. This comes when employees feel they are valued, important and critical to the success of the business. This is created in the organization’s culture.

No employee-focused workplace, no extraordinary employees. No extraordinary employees, no customer loyalty. No customer loyalty, no great results.

Here are my 10 components of a powerful employee-focused culture (presented in greater detail in my book, Fire Up! Your Employees and Smoke Your Competition):
1. A clear and compelling company vision or purpose.
2. Clearly defined ethical standards.
3. A competent talent-based employee selection process.
4. A dynamic on-boarding process.
5. A fair and attainable reward and incentive process.
6. Fair and recurring performance feedback.
7. Regular skill development.
8. Regular career development.
9. Succession planning and mentoring.
10. An inclusive and diverse work environment.

How you treat your people determines how your people treat your customers. Focus first on employees to ultimately focus on customers. How employee-focused is your workplace culture?

Please forward this to someone who can benefit from it and contact me to help create a powerful employee-focused workplace culture.

When The Economy Improves Your Employees Will Leave You

Wednesday, September 23rd, 2009

Today, the word on the street is that you should be happy to have a job; there are so many still unemployed. Though this may be a basically true statement, it conveys the wrong attitude about jobs to management. Though employees should be happy to have their jobs, managements must never take any employee for granted, in any economy. Managers must continue to approach today’s employees with the same energy and personal regard as if there were a shortage of employees and finding the next one would be nearly impossible. When managers value, respect and care for their employees, employees return greater effort, performance and loyalty. A recessionary economy is no time to lose the focus on employee performance and loyalty.

The rumblings in the HR world are that as the economy starts to improve, many employees will jump ship. Many employees have put up with bad workplaces, out of touch managers and unreasonable work expectations because of today’s economic challenges. Many managers have used the tough economy to raise the expectations, change the benefits and reduce the rapport. And soon, when things improve, these employees will revolt. And when they do, they will exit in significant waves, searching for organizations that cared for, trusted and valued their employees in down times. And with the power of instant communication and social networks, employees are already taking note of which organizations show up on the naughty and nice lists.

Here are the five reasons why when the economy improves, your employees will leave you:
1. You constantly told them they were lucky to have a job and made them feel desperate and not in control of their lives. You constantly reminded them of the number of out of work employees and how tough their situations are. Remind them they have no control and that they are lucky to be working and your employees will leave you.
2. You added more work to each role because some roles were eliminated. Instead of being fair about the workload with changes to compensation, time off or a promise to make things right in a better economy, you took advantage of the situation and forced the extra work on your staff (and reminded them they were lucky to have the job). Not only does this overwork your employees, but it interrupts the critical work/life balance needed to allow employees to feel successful both at work and at home. Make the workload unfair without any attempt to balance it and your employees will leave you.
3. You told your employees how things were going to be instead of presenting the tough situations and asking for their input to solve them. Employees were excluded from difficult news, or given difficult news with little time to react or respond. Successful organizations are based on open, honest and timely communication with employees; not only does this keep them informed and aware, it sets them up to participate in the challenges and opportunities of the organization. Keep them in the dark and refuse to allow for discussion and your employees will leave you.
4. You became more focused on results at the expense of the rapport and relationships you had with your people. Employees require constant contact; they require a real relationship with their managers. Managers who spend time away from their people disconnect from their people. Make your employees feel like a cog or a disposable part of the process and they will leave you.
5. You became so aware of the down times that you forgot to celebrate and make some “up times.” All employees know how critical the workplace and economy had become; it is everywhere in the news. Organizations that did nothing but worry, fret and disconnect, missed an opportunity to show their employees the best opportunities in any economy happen when the outlook is optimistic. Optimism is a choice. Organizations that find ways to be upbeat about things worth celebrating create higher performing and engaging workplaces. They weather the challenges better, becoming more successful for their approach. Make your workplace dismal and a downer and your people will leave you.

It is your choice how to handle an economic downturn. You can let the news take you down, and then take it out on your employees; or, you can see that your employees are also affected. You can share information, deal with their fears and frustrations openly and honestly. You can share information about necessary cuts and solicit ideas to help respond in ways that have the least impact the employees and their performance. You can be sensitive to how much work a person can do in a day and build a plan to get the work done and care for the health and safety of the employees. You can choose to create a powerful, upbeat and optimistic approach to the workplace – tough times don’t mean you can’t have fun and love your jobs. You can stay more closely connected to your people, ensuring that they have what they need by building a stronger community in and out of work. You can constantly remind them that they are lucky to have a job and there are hundreds of others waiting to take their jobs if they slip up. Seems almost a return to the early industrial age. But be aware, a revolution is brewing.

So, for the employees reading this, print a copy and leave it on your manager’s desk. Let them know that some of what they do is not inspiring your loyalty. And for managers reading this, remember, your people are your profits – in good times or in bad. Organizations that respect, care for and value their employees, win their loyalty. Making it through the day – average. Making it through the day and getting them excited to come back and do it again tomorrow – priceless. It is your choice how you manage.

What Kind of Performance Do You Have?

Sunday, May 10th, 2009

I see it over and over again – average or lousy employee performance. I see it because I am a customer and those who wait on, provide service to, cash me out, answer questions or help me are so disconnected from what they do. Great performance requires that employees are connected – intellectually (they are good at what they do) and emotionally (they are passionate about what they do). When both are in place, you have a maxperformer – a super performer. When not in place, you have an average performer who aggravates your customers and costs you money.

See it CLEARLY Now that you know the two components, start to watch wherever you go. See the average performers and notice that they are in jobs that don’t make sense for them, or they hate what they do. Either way, you lose. Ignite your employees performance by learning how to hire the right ones (intellectual connection) and then engaging them with high-energy, customized roles (emotional connection). This process is spelled out in a step-by-step process in Fire Up! Your Employees and Smoke Your Competition. Download some chapters to see its process. Purchase your copy now and get your employees Fired Up! – instead of Fizzled Out.