You spend money on technology. You spend money on sales and marketing. You spend money on real estate and awesome office space. What about the money that you're spending on your people?
I'm not talking swag, and I'm not even talking about training. I'm talking about the money you spend on your workforce to help them be successful and happy in your organization.
You probably understand the benefits to strategy and strategic planning for the purposes of getting more effective execution on your action plans moving forward, but have you considered the impact of your strategy and culture on the retention of your staff?
As culture becomes a more central part of organizations like Southwest, Zappos and other successes big and small, there is also a negative aspect to a culture that has a direct impact on your bottom line.
Understanding what might be going inside your organization means looking under the surface of your P&L (Profit and Loss), employee reviews and HR department.
Let's take a look at strategy and culture together, and while we do, think about your organization and examples of how this might be represented within your team.
According to Gallup, increasing employee engagement boosts productivity and profitability by at least 20 percent.
Compared with bottom-quartile units, top-quartile units have:
- 37% lower absenteeism
- 25% lower turnover (in high-turnover organizations)
- 65% lower turnover (in low-turnover organizations)
- 48% fewer safety incidents
- 41% fewer patient safety incidents (in applicable fields)
- 41% fewer quality incidents (defective products/services)
- 10% higher customer metrics
- 21% higher productivity
- 22% higher profitability
With results like that, it's hard to argue with the investment return in people and in HR as a strategic partner to your success.
The British Columbia Construction Association states that ‘Even though the youth unemployment rate in BC is 14.5%, only 1 in 85 graduates enter the trades directly out of high school. We need that statistic to be 1 in 5 to fill the workforce gap.’ An amazing static, considering how lucrative and innovative careers in trades can be. So yes, there is a skills gap, and figures like this make it nearly impossible to deny. Also evident is the drop of the price of oil and the fall of the Canadian dollar. Both of these drivers push more people to diversify their career choices and explore options that may not include punching the clock at 9:00am, and again at 5:00pm. Or so we thought.
In my experience as a business owner, my successes were directly tied to the employees or the team of people that I was working with.
Leadership expert John Maxwell says: