Creating a Great Place to Work

By Richard Hadden

Surviving and thriving in a turbulent economy means that employers, from small companies to huge organizations, have to secure the willing commitment and participation of each person on the payroll. The best way to make that happen is to create an exceptional place to work.

Some would say, "Why bother?" With thousands of high-profile layoffs, and a temporary cease-fire in the war for talent in certain industries, some employers have adopted a cavalier attitude toward the work force. "If you don't like working here," they say, "we'll just replace you with someone else who really needs the job."

Since 1997, Bill Catlette and I have been analyzing the historical and current financial performance of companies known as great places to work and comparing them with their competitors. In every study we've conducted, the results are overwhelming. Employers of Choice outgrow and outearn their competitors, and they create substantially more wealth for their owners and investors.

The publicly held companies listed in Fortune's annual list of 100 Best Companies to Work for in America outperform, by wide margins, such bellwethers as the S&P 500, the Dow Jones Industrial Average and the NASDAQ. Regardless of economic conditions, employees who are treated well produce higher quality and higher volume, with better customer service, and at a lower cost than their rivals. In short, creating a great place to work is simply one of the best things a company can do for its bottom line

Data from the U.S. Bureau of Labor Statistics make it clear that the war for talent is far from over. It's only just begun. As baby-boomers approach retirement in droves, the supply of new-generation workers can't possibly fuel even a moderately growing economy in the years to come. The numbers just don't add up. And the best and brightest talent will go to those companies that create the best places to work.

There are plenty of steps employers can take to motivate workers and boost morale in tough economic times, without spending a lot of money.

• Be open and honest about the company's financial position. Educate employees about where the money comes from and where it goes. Otherwise, employees think revenue is easily earned and can't understand why the money doesn't flow more freely. Only when employees understand the finances of your enterprise can they help increase sales and minimize expenses. This also increases their interest and involvement in the business.
  
  
• Keep expectations for extra work reasonable, and never let your employees outwork you, the manager. People are like muscles in your organization. They need to be worked, fed and rested, in proper balance, to maintain maximum output.
  
  
• Involve employees in decisions about changes taking place, rather than forcing the changes on them. Ask them to join you in designing new systems and procedures to help the company survive and thrive in tough times. Some will decline the invitation, but most will welcome the opportunity to be architects of change.
  
  
• Work extra hard at giving performance feedback and conducting performance reviews on time. Nobody likes to be kept in the dark about his/her performance, especially in times of economic uncertainty.
  
  
• Eliminate everything that gives the appearance of extravagance. If you have to scale back, get rid of the corporate jets, toys and executive retreats before cutting jobs, benefits and employee amenities.
  
  
• Reward extra work, both verbally and with extra demonstrations of appreciation. Write thank-you notes for excellent work. Give supervisors the autonomy to give appropriate rewards at their own discretion, without having to get permission or adhering to a corporate "rewards program." The rewards don't have to be expensive. (See below for a short list of no-cost and low-cost ways to express appreciation to workers, individually and in groups).
  
  
• Make extra efforts to take some of the strain off employees' lives, at work and at home. Tough times mean extra stress for everyone. Monitor the levels of stress in individual workers, and in your team as a whole. Provide a relief valve for workers experiencing difficulty in their professional or personal lives.

Low or No-Cost Ways to Show Employee Appreciation

• When extra workloads or a special project mean people are working late, order pizza and have a "working party."
  
  
• Reward extra effort by giving a surprise half-day off, after a particularly stressful time. You'll have to do without your employees for more than a half-day if they get sick or burned out.
  
  
• Donate one of your own frequent-flyer tickets to send a deserving employee to care for a sick parent or other family member.
  
  
• Ask for volunteers from the work group to help a co-worker pack and move into a new home.
  
  
• Help a single parent supervise at his/her child's birthday party.
  
  
• Tie two movie tickets to a broom handle. The first person to pick up the broom to use it gets the tickets.
  
  
• To reward an exceptional accomplishment, treat the employee to a night on the town in a chauffeured limousine. It's cheaper than you think. Shop for seasonal deals. Stay away from prom season.
  
  
• Be there. This isn't the time to watch from the executive suite. Perhaps the most motivating thing you can do as a leader is to show by your physical presence and strong personal support that you care about and appreciate each person under your leadership.

© BellSouth Telecommunications, Inc.

This article is adapted from Surviving and Thriving in Today's Economy, a 32-page booklet published by BellSouth Telecommunications which is designed to help small business owners succeed in the midst of a challenging market. Contact BellSouth Small Business Services at 888-868-3840.

If you want to learn more about motivating and rewarding employees, consider these AMA seminars:

• How to Use a Total Rewards System to Strengthen Performance and Organizational Results
  
• Motivating for Results: How to Bring Out the Best in People
  
• Leadership and Team Development for Managerial Success
  

Author Bio: Richard Hadden is co-author, with Bill Catlette, of Contented Cows Give Better Milk. He speaks to business audiences about leadership and the bottom-line benefits of being an Employer of Choice. Contact him at www.contentedcows.com or call 800-940-7006.