Why don’t companies invest in their people?
They should, it’s the smartest business decision they can make.
Based on a survey done by Gallup in 2018, a staggering 85% of people are not happy at work. Another stat that came out of this survey is the true cost of replacing employees can be twice their base salaries depending on their wage, role and experience. The cost of replacing high performers who often deliver 400% more in productivity than their average counterpart is even higher!!!!
A focus on an employee-centric company culture is the new trend but the work behind the shift is not changing fast enough. Employers need to change the way they lead the company culture and that takes a lot of heavy lifting and requires the commitment of both time and money. For many reasons, employees have not been a priority or worse, a budget line on the budget.
Customers come second, employees first. It’s a philosophy that brings unexpected benefits to both the company and its clients.Richard Branson
A few reasons why I believe companies are not investing in their people:
Small to medium-sized businesses could be managed by the owner, therefore does not have the resources or knowledge to lead the change. They are unsure of where to begin, because they do not know what to ask. How can you ask a question when you don’t know there is a solution to be needed? This is what I think owner-managed businesses feel about Human Resources and Talent Management. They are great business leaders, but leading people is not their expertise.
Company leaders have a dictatorship style that has been a very traditional method of managing. With this type of style, you are either not aware or you do not care about the state of your employee, or both! This type of culture is unproductive, costly and inefficient.
Organizations are unaware of the culture because there is a lack of communication between the leadership and employees. Communication is key to set expectations, retain top talent, and continue to understand the state of employee satisfaction. There is no such thing as over-communicating.
Employers don’t ask. 96% of employees want to have a check-in at least once a quarter, if not monthly. They want to be heard, they want to contribute, they want to have impact in the company, and they want to hear praise. However, most organizations are still completing traditional Performance Reviews on a semi-annual or annual basis, or not at all. They are ineffective and may do more harm than good. To understand the state of your company, you need to ask your employees and listen to what they have to say.
Your culture is your brand, which means it’s not just for your current employees, but also for your customers and potential future employees as well. To be competitive you want to be known as a top employer. A positive, well-regarded culture distinguishes your company, helping you stand out among competitors when recruiting talent in this increasingly competitive economy. When given the opportunity to choose, you can bet that a prospective employee will gravitate towards the company with the defined vision and values and with an employee-centric culture.
To be a top-employer, you need to invest in your people. It will take time, resources, and money but you can’t afford not to!