It should be obvious that a company’s relationship with its employees must be a vital concern.
Employee dissatisfaction inevitably reflects in the company’s bottom line. Poor productivity and low morale can also stem from employee disengagement.
On the other hand, if an employee is well treated, there is a significant payback. Supervisors must realize that they should always be aware of “role reversal.”
By consistently taking an empathetic view of an employee’s situation, employers can positively impact performance and productivity. Good relationships entail financial return surpassing any additional costs.
It should follow that treating another as one wants oneself to be treated is a key essential in working with employees. Recent stories suggest that this may not always be the case.
That said, there will always be a few “bad apples.”
It must be recalled that Barings Bank, a major British institution founded in 1690, collapsed after rogue trader Nick Leeson ignored company rules around trading. The profits generated were illegal and ultimately led to the bank’s bankruptcy.
A company in the U.S., Lincoln Electric, began a profit sharing plan so that workers could participate in profits generated; also Magna Corporation in Canada. This program encouraged collective action towards the company’s goals. Many sought employment there. The workers’ productivity was astounding and this scheme has worked well for all concerned.
Long ago, Henry Ford doubled the wages of his workers to $5 per day. He believed that would reward workers and provide stability as well as increase their purchasing power. This plan worked well and discouraged unions from organizing in his plants.
In the past century, U.S. mine workers were paid very low wages while being subjected to unsafe working conditions. Strikes became routine and employee dissatisfaction a major problem. Ultimately, unions negotiated more sustainable wages. Resentment forced the owners to use more automation. Then the workforce shrank by about 80 per cent. Management’s mistakes were very expensive.
Treating workers well is the only way for companies to succeed in this increasingly competitive world. The benefits work both ways, not only for employees, but also for a company’s bottom line.