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Are people really your most important asset?

By 4 March 2015 July 19th, 2021 No Comments

people-important-assetWe recently carried out a survey of 100 owner-managers. 92% agreed that their people were their most important asset, without which they could not operate effectively or at all. Yet only 18% of same owner-managers said that they spent more than 20% of their time on people related issues. Of the other 82%, around half said that managing and developing people was something with which they had little involvement and usually delegated to others. This raises the immediate question – if people are such an important asset for the success of a business, why do so few managers spend time managing them?

In today’s increasingly competitive environment, employers want employees who will do their best work and ‘go the extra mile.’ At the same time, employees want jobs that are worthwhile and that inspire them. More and more organisations are looking for a win-win solution that meets their needs and those of their employees – an engaged workforce. Training and performance management are important influences but what we are looking for is creating a culture and environment, where people feel a part of their business.
As our survey showed, employers need engaged employees because they deliver improved business performance. Research has repeatedly demonstrated the links between the way people are managed, employee retention and attitudes and business performance.

Employees want to work for an organisation where the leaders have a vision and purpose which includes a valued role for them. Although some employees claim that their only interest is coming to work, doing their job and getting paid, and their employers believe them, what they usually mean is that they do not see a bigger picture, or how they fit in and consequently do not feel part of it. Employees who do not see how they are contributing rarely deliver their best performance.

An essential first step in transforming your people into an engaged workforce is for your organisation’s leaders to clearly define its vision and purpose, together with the valued contribution employees are invited to make, and communicate it effectively, consistently and continually.

The second is to communicate the golden thread so that everyone knows where they fit in. One organisation painted this on the factory wall at a point where most of the workforce had to pass by at least twice a day.

But this is not enough. Employees want to know what is going on in the organisation and leaders need to be prepared to tell them. One frequently quoted cause for employee disengagement is the worry, frustration and insecurity generated by being kept in the dark.

The most effective approach is for the most senior leader to personally brief all employees and be prepared to answer questions there and then. For operational reasons and in order to ensure that everyone has the opportunity to attend, it may be necessary for the briefing to be repeated several times. Paper, electronic or team leader briefings can provide effective support for senior leader briefings but can never be an effective substitute for them. Leaders who regularly and fairly brief their workforce on the “state of the nation,” warts and all, consistently find that this generates a much higher level of ownership and engagement with the organisation. This is because we, as human beings, respond to seeing and hearing directly.

There is, however, another equally important aspect to effective communications and that is providing employees with an effective means of contributing to the day to day management of the organisation. They have first-hand knowledge of what works and what does not. If your line managers can harness, rather than block that knowledge productively, you will get better decision making, more innovation and increased employee engagement.

Everyone really appreciates their efforts and achievements being recognised by their managers and colleagues. Employee recognition can take various forms depending on the perspective from which we approach the work process but failure to recognise efforts and achievements inevitably results in the disengagement of the employees concerned.
Research consistently shows that employees do not like being told what to do. They much prefer to be given objectives to achieve within predetermined parameters or standard operating procedures, and left to get on with it. This greatly enhances their sense of being valued which in turn increases their sense of engagement. However this requires a very different style of line management – a “hands off” style based on people being trusted to perform rather than the ”hands on” style which many line managers are more comfortable with.

Another critical aspect of empowerment is values and behaviours. It is vital to recognise that if you do not define your values, you cannot measure performance against them ,and if you cannot measure performance, you cannot manage it. It is equally vital to recognise that the standard of behaviour you ignore is the standard of behaviour you set by default. Therefore, your operating conditions have to be clearly understood and maintained for people to feel comfortable, confident and able to act – empowered.

If your people really are your most important asset then treat them as such. Spend time with them, be visible and prepared to listen and above all, follow the same rules, values and behaviours as you set for them.