“A team of scholars led by University of Southern California management professor Theresa Welbourne discovered that investments in human resources are the strongest predictors of the survival of firms five years after an IPO…”The reason HR factors had a positive effect on longer-term performance was due to their effects on what we call ‘structural cohesion,'” Welbourne writes. “Structural cohesion is an employee-generated synergy — essentially a close-knit, high-energy culture — that propels the company forward.”
“… companies that closely mesh their external brand with their employee experience outperform peers … tight alignment between a company’s external message and its employment “deal” — the rewards and experience a firm offers to workers — leads to increased employee engagement and retention, a superior customer experience, and a 15 percent higher market premium compared to industry peers.”
“In announcing the arrival of “the ethical consumer,” Time magazine noted: “We are starting to put our money where our ideals are.” If companies want to succeed in this ethical age, they had better live up to those ideals.”
“Chief among the factors pushing companies to behave better are the rise of interactive Web 2.0 technologies and a corresponding culture of participation and disclosure, whereby millions of people are publishing their experiences and opinions online. Also forcing companies in the direction of worthiness is a growing global consciousness. Heightened appreciation of human interdependency — fueled by factors like international trade, travel, and concern about global climate change — is making people care more about how companies treat workers, customers, communities, and the environment.”
“While you can make some customers happy through brute force, you cannot sustain great customer experience unless your employees are bought-in to what you’re doing and are aligned with the effort. If employees have low morale, then getting them to “wow” customers will be nearly impossible.”
“… studies find that primary contributors to employee commitment include:
- management concern for employees and customers
- participation in decision making and autonomy, along with supervisory career support (information, advice, and encouragement)
- non-monetary recognition and competency development”
“A compelling “for what” purpose can also bring out the best in employees. A cause that fires up the imagination, stirs the spirit, or otherwise taps our better nature is likely to make us work hard and feel alive on the job.”
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