|A Deloitte Consulting study shows that companies|
with positive work environments achieved
corporate success. Apparently it pays to have
Every year, Fortune Magazine publishes a list of the top 100 companies to work for. These companies are well known for how well they treat their employees. In 2005, Deloitte Consulting decided to see if there was a correlation between a positive work environment and corporate success. They tracked the shareholder returns of the 56 publicly traded companies on Fortune’s 2005 list of best companies to work for. According to this study, these companies not only consistently beat the S&P 500, but “walloped it.” Companies that have happy employees apparently have a better chance of success than those who don’t. As Deloitte principle Bob Dalton explained, “This puts real data on something that seems intuitively true.” *
Every company and every business strategy depends on people to make it work. The more effectively the people work, the more efficiently the company will run and the more successful your business will be. Unfortunately, many businesses don’t understand how to get the most out of the people who work for them. Some businesses seem to view people as some kind of necessary evil that must be endured in order to make more money. Businesses that view their employees this way are seldom as efficient as those who are able to successfully motivate and develop their employees for long-term success.
Here’s a quick self-test: When you think of “human resources,” which word do you think of the most, “human” or “resources?” Your answer may make the difference between creating an adequate business and creating a great business. At the risk of stating the obvious, humans don’t behave like other types of resources. You can’t simply push a button, turn up the power, or spend more money and expect people to react the same way that your other resources do. Getting the most out of your employees takes time and effort. Yet, it’s usually not as difficult as many companies seem to make it.
Some would say that treating employees with respect and dignity is merely an ethical issue and has little to do with creating a more successful business. This type of business owner or manager is shortsighted and is missing out on one of the greatest assets their business will ever have. You may have the greatest strategy the world has ever known, supported by fantastically prioritized goals and objectives. However, it may all be for naught if your employees don’t care and aren’t motivated enough to properly implement those objectives.
The bottom line is that employees are complex resources that need to be treated more like humans than resources in order to achieve the best possible results for your business. The more a business treats human resources as mere resources, the less effective that business will be at meeting its objectives. Likewise, the more a business treats human resources as humans, the more effective and successful that business will be. It is almost that simple.
* Source: Fortune Magazine, January 23, 2006, p. 100
What's your experience with happy employees? Do you think companies with happy employees are more successful ? Comment here or connect with me in theMasterControlCompliance Accelerated LinkedIn Group.
Curt Porritt has more than 18 years of experience in the high-tech industry, including more than 13 years of upper-level management experience. He played an integral part in designing and managing WordPerfect's international development organization one of the first in the world to produce software products simultaneously in more than 30 different languages. In 1995, Porritt began his own consulting firm that helped clients achieve the highest possible ROI from their international markets.
Prior to joining MasterControl in 2006, Porritt served as President and CEO of 10x Marketing, an Internet marketing firm focused on helping companies realize more visitors to their Web site. As senior vice president of marketing for MasterControl, Porritt has merged his international experience with the latest breakthroughs in global Internet marketing. He enjoys teaching classes on Internet marketing and business strategy for the Small Business Development Center based on a book he authored entitled "The Basics of Business."