MPowerment Matters

Employer of Choice

March 2008

If asked, I am willing to bet that most business owners today would say that their people are their most important asset. But I am not sure how many actually believe it. And even more importantly, I am not sure how many treat their employees as if they are valued.

Most companies don’t have values statements. And many that do, talk about values but don’t live them. People that talk about values but don’t live them would be said to be without character. Organizations could be thought of the same way.

There are some interesting trends that are occurring at the same time that will affect the future of many businesses in important ways. Those without character will be the most severely impacted.

TREND #1
The baby boomers are getting older. The vanguard of the generation is inching up on 65 and is either already retired or getting close to retirement. Within ten years, close to 70 million of us will be leaving the workforce. We will be impossible to replace. Being the largest generation ever, there are not enough workers coming up to fill all of the jobs being vacated.

TREND #2
The youngest generation in the workforce doesn’t want the same things the Boomers did and doesn’t have the same values. They will not step in and replace the retirees en masse. They will be much more selective in where they will work long term.

TREND #3
Many manufacturing jobs require some technical skills, usually taught in technical schools and junior colleges. They require a background in mathematics and science. US schools are not producing math and science students, certainly not at the rate that many other countries are, particularly, China, India, Malaysia and other Asian countries.

THE RESULT
There will be a worker shortage in the US, for a lot of critical jobs. The balance of power will shift to employees and the employers will be begging them to come on board. Workers will have a choice and employers will need to become “employers of choice.”





This brings us back to the companies without character. How will they ever attract workers? Offer higher wages and more benefits? What will that do for them? Absolutely nothing. It may get some on board initially, but by itself, it won’t keep them on board.

THE OPTIONS

OPTION #1: DO WHAT YOU HAVE ALWAYS DONE
Employers can continue to operate the way they always have. It may take a while for them to realize that the best and the brightest have left and gone elsewhere. They may not immediately notice that their quality has slipped a bit or their costs have risen or their innovation has fallen off.

What they may notice is that their retention rate has gotten worse. They will probably blame the younger generation for a loss of work ethic and they will fail to look in the mirror to examine their role in the problem.

They will eventually either wake up to the reality of their situation; or they will begin losing business to the point of going out of business or perhaps selling to a savvier competitor.

OPTION #2: UNDERSTAND WHAT BEING AN EMPLOYER OF CHOICE MEANS AND DO SOMETHING ABOU IT
It is really pretty simple. Numerous studies, articles and even books document what employers need to do to insure that they will attract and keep good employees. The effort does not necessarily involve expense. It involves an investment of time and thought. It involves truly believing that your people are your most important asset and caring for them accordingly. To have employees view an employer as an employer of choice they have certain goals that must be met.

Employees are looking for:

1. equity: to be treated justly and fairly in the basic conditions of employment. This includes fair wages and benefits (they don’t have to be the best; just fair relative to market rates); a safe work environment; reasonably comfortable working conditions; and a workload that is not physically or mentally damaging. It can also involve management letting employees know that they are important to eh success of the organization.

2. achievement: to be able to take pride in one’s accomplishments at work by doing things that matter and by doing them well; by receiving recognition for one’s accomplishments and by taking pride in the company’s work and success. The sense of achievement is absolutely critical. It comes from (a) the challenge of the work itself; (b) the opportunity to be mentored, trained and to undergo development for new competencies; (c) the fit between the work and the worker’s abilities and passion; (d) the perceived importance of the job to the company and to the company’s success, and to the customer and even society at large; (e) the feedback, performance reviews, recognition and appreciation that come from doing good work; and along with that, the opportunity for promotion; (f) working for a company of which the employee can be proud- for the quality of its work, for its vision and values, for its brand and its status and for what it contributes to the world.

3. camaraderie: This means having good communication and collaboration with co-workers and managers, as well as warm and interesting relationships. People like having a good relationship with their boss or manager. Having a bad relationship with a manager is one of the main reasons people quit their jobs. People spend a lot of time at work and they like time spent there to be fun, or at the very least, cordial. What this means is that employers have to spend time developing a culture that respects people and encourages warmth and friendliness.

We all want our businesses to continue to thrive and grow. We all want to attract the right people and keep them doing good work and contributing to the success of our companies. This will not just happen without effort and vigilance.

Management Mpowerment Associates works closely with organizations of all types to look hard at their culture and help them align their values and those of their employees to achieve a successful and positive work environment. If you have issues and concerns about your organization’s ability to thrive in the future, call 610-783-5305 for a free consultation.


There are some wonderful new books that we recommend this month. The first is The Breakthrough Company by Keith McFarland. It documents how small companies can break through to become extraordinary performers as larger companies. The author studied more than 7,000 companies and documents the traits that the “breakthrough” companies exhibit. While there are no real surprises among those traits, the information is laid out artfully and with great case studies supporting each one.


Another intriguing book is The Opposable Mind by Roger Martin. The author writes about how the thinking of great leaders is distinguished from the thinking of more conventional ones. His concept is that they are adept at integrative thinking, which he defines as the ability to hold two opposing ideas in their minds at once and then achieve a solution through a synthesis of those ideas. The author writes well and lays out his ideas clearly. This book has a lot of value.

Lastly, is the book Why Smart Companies Do Dumb Things by Calvin L. Hodock. The author speaks of the importance of innovation to competitive advantage. But mistakes are made that undermine the success of new product development. He takes an in-depth look at the typical blunders and offers a prescription for avoiding them.


The What You Didn’t Learn in Law School® Conference is coming up April 11-12 in Pittsburgh, PA. Those of you wanting to gain valuable understanding of what is required to be a law firm leader should consider attending. Learn more at www.managingpartnerinstitute.org.


Those of you who are entrepreneurs or want to learn more about entrepreneurs should check out my blog at www.entrepreneursmentor.net. If anyone would like to do a “guest” posting, let me know.