Your Workforce: Expense or Asset?

May 14, 2019

Pay close attention to how managers view the commodity called “labor.” In most organizations, the perspective is that labor is an expense. It is handled on the financial statements as an expense.

In most cases, labor is the highest monthly expense for an operation. It is the payment made in order to secure the resources needed to create the products or services sold by the organization.

As the largest expense for many operations, labor is watched and managed very closely. The profitability of the operation is directly impacted by how many workers there are, so all kinds of techniques are used to keep this variable under tight control.

Managers want to have exactly the right number of people on the roster, so perhaps they utilize temporary workers during peak times to mitigate overtime. They need to be careful because the temporary workers need to be sufficiently trained so there are no safety issues or quality lapses.

In many professional settings, the workers are stretched to the elastic limit and beyond. Managers ask individuals to take on responsibilities that were formerly done by two people or even more. This is done in the pursuit of maximum productivity, which is thought to be the prime governing mechanism for profit.

When budgeting, managers at various levels play games trying to pump up the size of the workforce realizing there will be cuts down the road. Alternatively some managers cut the estimated number of people to the bone in order to show positive yearly trends in productivity. The sequence goes on year after year in many organizations. The charade is well known by managers at all levels, and the posturing or tactics sometimes go beyond annoying to downright fraudulent.

Only in a small percentage of organizations do they view employees not as expense items but as assets. Oh sure, most companies have a value on the plaque in the lobby that states, “People are our most important asset,” but the managers’ daily actions reveal the hypocrisy of that platitude.

If people were the most important asset, then during times of low demand, the managers would be selling inventory or buildings and training the employees for future service. Instead, you inevitably see layoffs or at least furloughs to control labor expenses in slack times.

Try looking through a different lens

What if we really did think of employees as assets rather than expenses? Would that provide some unique and amazing possibilities for profits? I think so. Here are some benefits you might see…

1. People would feel valued

In most organizations, people feel like pawns. The investment is always minimal, and the expectation is that employment is a temporary condition at the whim of management and the vicissitudes of the fickle marketplace.

Treating people as valued assets would bring out the best in people because they would feel more engaged in the business. The magnitude of this effect can only be estimated, but it is a lot larger than most leaders realize.

For example, several studies have shown that the productivity multiplier between low trust groups and high trust groups is two to five times. When people are engaged in the work, they perform significantly better because they feel valued.

2. Development of people would be emphasized

The mindset of treating employees as assets would lead to continual training. When you invest in an asset, you take care of it and make sure it is performing at peak levels. This creates a situation where employees truly want to stay with an organization, which reduces the issue of turnover.

Turnover is often the most controllable expense in an organization, yet the true cost is hidden somewhat. World class organizations achieve turnover rates below 5%, while many organizations habitually live with a 30% or higher turnover rate. Do you know the turnover rate for your organization? Do you have an estimate of the cost for turnover?

3. The culture would be uplifting

When employees are learning and growing, they become more valuable not only for what they can do but for how they influence others. The workplace takes on a feeling of freedom and joy rather than of being an oarsman on a Viking ship. When people are treated like assets, they band together as a strong team or family that is unstoppable. The power of synergy is obvious, and the productivity gained from lack of quarreling is immense.

4. The focus would be on the right stuff

In most organizations, where people are considered expenses, the daily focus is myopic. People are grumbling about each other and trying to protect their turf and future. The atmosphere is one of scarcity where the resources are not there to do what is needed to survive. People are always clamoring for more resources.  I knew one professional who spent about 40% of his time going around grumbling about not having enough resources to do his job.

When people are assets, the atmosphere is one of abundance where there is high value internally. People focus on the customer and on the mission of the unit. Since there is no longer a need to protect your back, you have the ability to move beyond just satisfying the customer or even delighting the customer to actually amazing the customer. That focus becomes a competitive weapon which further entrenches security for the future.

5. Organizations could be flatter

The need for numerous hierarchical levels has to do with control. When people are treated as expense items, they need to be kept in line. That means the span of control for any one manager cannot be too great. There is a lot of accounting work that needs to be done in order to assure the expense of labor is optimized.

When people are treated as assets, trust grows naturally. That dynamic means less supervision is required, so over time the hierarchy can become flatter. The overhead cost savings available to most organizations is staggering.

6. Improved Teamwork

If people are assets, the organization is going to do a lot of cross training, especially during slack times.  That increased capability pays off handsomely when the cycle reverses and there is a need to cover some critical positions based on bench strength.

When workers cross train each other, they form a kind of bond that is intangible but highly valuable in times of high need.

These are just six ways an organization can prosper by considering employees as assets instead of expenses. The operation can be much more profitable in the long run with this kind of mindset. Try it in your organization and experience the difference for yourself.

 

Bob Whipple, MBA, CPLP, is a consultant, trainer, speaker, and author in the areas of leadership and trust. He is the author of: The Trust Factor: Advanced Leadership for Professionals, Understanding E-Body Language: Building Trust Online, and Leading with Trust is Like Sailing Downwind. Bob has many years as a senior executive with a Fortune 500 Company and with non-profit organizations. For more information, or to bring Bob in to speak at your next event, contact him at http://www.Leadergrow.com, bwhipple@leadergrow.com or 585.392.7763


The Link Between Trust and Motivation

March 19, 2019

How many times a week do you hear leaders say, “We’ve got to motivate our people?” Those words and the actions they generate seldom lead to a sustained improvement in motivation. The above phrase is one of the most common phrases leaders or managers use every day. So what’s wrong with it?

Lack of Understanding

The phrase shows a lack of understanding about what motivation is and how it is achieved. Leaders make a mistake when they use perks to increase motivation by making people happier, like handing out free candy. They put a manipulative spin on the subject of motivation that backfires for several reasons:

1. Historical Research

The notion that improving things in the workplace will somehow make people more motivated is flawed. Over 50 years ago, Frederick Herzberg taught us that increasing the so-called “hygiene factors”  (read that more candy) is a good way to reduce dissatisfaction in the workplace, but a poor way to increase motivation.

Why? – because things like picnics, pizza parties, hat days, bonuses, new furniture, etc. often help people become happier, but they do little to impact the reason they are motivated to do their best work. That impetus comes from a different source.

2. Less is More

It is imagined that heaping nice things on top of people it will improve their attitude leading to higher motivation. The only lasting way to improve attitude is to build a better culture.

3. Bribery is not Motivation

It is difficult to motivate another person. You can scare a person into compliance, but that’s not motivation, it is fear. You can bribe a person into feeling happy, but that’s not motivation it is temporary euphoria that is quickly replaced by a “what have you done for me lately” mentality.

4. Motivation is a Personal Choice

Individuals will gladly accept any kind of freebie the boss is willing to grant, but the reason they go the extra mile is a personal choice based on the level of motivational factors, not the size of the goodie bag.

5. Focus on a Better Culture

Smart leaders focus on the culture first. They seek to build an environment of TRUST and improve the motivating factors, such as authority, reinforcement, growth, and responsibility. With these precursors, motivation within people will grow. It will be enhanced if some nice perks are added, but the perks alone do not create motivation.

Why do I make this distinction? I believe motivation comes from within each of us. As a manager or leader, I do not believe you or anyone else can motivate other people. What you can do is create a process or culture whereby employees will decide to become motivated to perform at peak levels.

6. Don’t use the Word Motivate as a Verb

How can you tell when a leader has the wrong attitude about motivation? A clear signal is when the word “motivate” is used as a verb – for example, “Let’s see if we can motivate the team by offering a bonus.” It is as if “motivate” is something a leader can “do to” the workers.

If you seek to change other people’s attitude about their relationship to work with goodies, you are going to be disappointed frequently. Using the word “motivation” as a noun usually shows a better understanding – “Let’s increase the motivation in our workforce by giving the team more responsibility to make its own decisions.”

What an Environment of TRUST Feels Like

The way to create the best environment for personal motivation to grow is to create a culture of TRUST and affection within the organization. Doing this helps people become motivated because:

• They feel a part of a winning team and do not want to let the team down. Being a winner is fun.

• They feel both intrinsic and extrinsic rewards when they are doing their best work.

• They appreciate their co-workers and seek ways to help them physically and emotionally.

• They understand the goals of the organization and are personally committed to help as much as they can in the pursuit of the goals because they know that when the organization does better, they do better personally.

• They truly enjoy the social interactions with people they work with. They feel that going to work is a little like going bowling, except the physical work is different. They are distributing computers instead of rolling a ball at wooden pins.

• They deeply respect their leaders and want them to be successful.

• They feel like they are part owners of the company and want it to succeed. By doing so, they bring success to themselves and their friends at work.

• They feel recognized for their many contributions and feel wonderful about that. If there is a picnic or a cash bonus, that is just the icing on the cake – not the cake itself.

An organization where all people are pursuing a common vision in an environment of trust has a sustainable competitive advantage due to high employee motivation. How do you achieve that kind of culture?

Tips to Achieve higher Trust

Building a culture of high trust requires that leaders stop trying to manipulate people and build a real environment. Excellent leaders create a solid framework of values, vision, mission, behaviors, and strategy.

The key to building trust is to allow people to point out seemingly incongruent behavior on the part of the leader without fear of reprisal. This requires leaders to suppress their ego needs to be right all the time and acknowledge their fallibility.

When people are reinforced for voicing their truth, even if it is uncomfortable for the boss, trust will grow. The quote I use to emphasize this is “The absence of fear is the incubator of trust.”

With this approach you have a powerful correcting force when people believe things aren’t right. If something is out of line, they will tell you, enabling modification before much damage is done. Now you have an environment where honest feelings are shared and there are no large trust issues. People in your organization will instinctively choose to become more motivated because they are working in the right kind of atmosphere.

Achieving a state where all people are fully engaged is a large undertaking. It requires tremendous focus and leadership to achieve. It cannot be something you do on Tuesday afternoons when you have special meetings, or by holding employee picnics. Consistently build higher trust by reinforcing people when they express themselves and you will experience higher and sustained motivation.

 

Bob Whipple, MBA, CPLP, is a consultant, trainer, speaker, and author in the areas of leadership and trust.  He is the author of four books: 1.The Trust Factor: Advanced Leadership for Professionals (2003), 2. Understanding E-Body Language: Building Trust Online (2006), 3. Leading with Trust is Like Sailing Downwind (2009), and 4. Trust in Transition: Navigating Organizational Change (2014). In addition, he has authored over 600 articles and videos on various topics in leadership and trust. Bob has many years as a senior executive with a Fortune 500 Company and with non-profit organizations.  For more information, or to bring Bob in to speak at your next event, contact him at www.Leadergrow.com, bwhipple@leadergrow.com or 585.392.7763


Body Language 2 The 5 C’s of Body Language

November 17, 2018

Interpreting the body language of others or ourselves is an art form. If you can do this well, you have an incredible advantage that can help you make better decisions and take more appropriate actions. In this series I will be covering hundreds of typical signals we give out with our body language.

The entire body of work needs to be tempered with what I call the Five C’s of Body Language. These are cautionary areas where we might unwittingly misinterpret some body language we are seeing. Knowing and taking these concepts into account will improve your accuracy of interpretation regardless of the specific body language you are witnessing.

1. Context

You must consider what is going on around the signal, what happened just before, where the person is located, what else is going on, and all other factors.

For example, if I am talking with you and I scratch my nose, it will usually mean I have an itch on my nose. But, if I am on the witness stand and have not touched my nose for an hour, it is a different context. When the prosecutor asks me about the bloody knife, and my finger goes to the side of my nose as I answer the question, that is a strong indication that I am lying or at least exaggerating.

Here is another example; if I raise my hand and then move so my palm is down while we were sitting in a quiet theater, it would mean “be quiet.” If, however, I made the same gesture while we were racing to get to a hospital after an accident, it would more likely mean “remain calm.”

2. Clusters

Since there are dozens of body language signals going on with each person at any given time, you should not ascribe heavy meaning to any single one. Instead, look for clusters.

If I see 5 indications in your body language that you are experiencing anxiety, the symptoms start to add up.

I can witness you rubbing your palms, rapid blinking, hair on arms standing out, foot movement, heavy swallowing, and shifting of weight. I might also notice more perspiration than normal.

With signals like these, I can be pretty certain you are anxious. Taking any one of those signals as the only indication, my guess that you are anxious is a lot weaker.

3. Congruence

If your words, your tone of voice, and your body language are telling me the same thing, chances are I am getting a true signal. When you are saying one thing, but your body language shows a different pattern, I need to be alert that you may be trying to deceive me in some way. I need to be vigilant and test more for congruence.

If there are several indications of incongruence, I should conclude you are not telling me the full truth.

For example, suppose I have an argument with my supervisor and she stomps off to her office. I wait for an hour then approach her humbly with a question, “Are you still mad at me?” If she wheels around with furrowed brow and crossed arms and says in a stern voice, “NO!” I can be pretty certain that she really meant to say, “YES!”

Congruence in body language has a lot to do with creating higher trust. When your body language is consistent with your verbal cues, you are being more authentic, and this consistency demonstrates you are a trust worthy person.

4. Consistency

Look for patterns in people’s behavior. I might have you as a student in my class and notice you are holding your head up with the palm of your hand. I might conclude you are bored with this lecture, but as I look for consistency I see a pattern.

You have shown other signs of fatigue since you arrived for class this evening. A few questions might confirm that you were up all last night with the baby. It had nothing to do with the quality of my lecture.

5. Culture

People tend to forget that cultural differences in body language are huge. For example, if you are an Eskimo, moving your head up and down means “no,” while shaking your head from side to side means “yes.”

An obvious difference in culture is the issue of proximity. When talking with a person from a Middle Eastern culture, expect the gap between you and the other person to be significantly less than when addressing a person from a western culture.

It is critical to understand the body language patterns in the culture you are currently in, as they may significantly modify the message. A great book to help you sort out these differences, particularly if you travel a lot on business, is Kiss, Bow, or Shake Hands: How to Do Business in Sixty Countries, by Terri Morrison, Wayne Conway, and George Borden, Ph.D.

Once you become adept at reading body language, you will be more likely to read the intentions and meaning of other people and also improve your own ability to project your intentions accurately. It is one of the best ways to improve your communication skills.

This is a part in a series of articles on “Body Language.” The entire series can be viewed on https://www.leadergrow.com/articles/categories/35-body-language or on this blog.

Bob Whipple, MBA, CPLP, is a consultant, trainer, speaker, and author in the areas of leadership and trust. He is the author of four books: 1.The Trust Factor: Advanced Leadership for Professionals (2003), 2. Understanding E-Body Language: Building Trust Online (2006), 3. Leading with Trust is Like Sailing Downwind (2009), and 4. Trust in Transition: Navigating Organizational Change (2014). In addition, he has authored over 600 articles and videos on various topics in leadership and trust. Bob has many years as a senior executive with a Fortune 500 Company and with non-profit organizations. For more information, or to bring Bob in to speak at your next event, contact him at http://www.Leadergrow.com, bwhipple@leadergrow.com or 585.392.7763


Successful Supervisor 87 Trust and the Quality of Your Life

August 4, 2018

While doing research for my third book, Leading with Trust is Like Sailing Downwind, I studied the personalities of numerous supervisors and other leaders to determine their characteristics. I found an interesting trend that has an important lesson about trust.

The most highly successful supervisors seemed to be having more fun, while the supervisors who were not doing well were really miserable.

I noticed that the top-rated supervisors had created high trust organizations, and they were allowed to be human beings. They could make occasional mistakes and the people who work for them would still respect them.

The supervisors who were doing poorly were bundles of nerves trying to figure out how to be perfect, because there was low trust in their organizations. If they did not spin every statement the right way, people would jump all over them.

These supervisors of low trust groups were staying up all night trying to outsmart the workers, while their effective counterparts were sleeping soundly, knowing the employees were truly on their side.

Supervisors who know how to build high trust consistently enjoy a better life for themselves. That also translates into a more relaxed work environment for everyone, which further enhances the level of trust, and the cycle continues.

These supervisors are allowed the luxury of being fallible human beings because their employees know they are sincere. Even if something occasionally comes out with the wrong slant, the employees will cut these leaders some slack.

In environments of low trust, employees are poised and waiting to pounce on any misstep or misstatement the leader might make.

Exercise for you: If you are a supervisor in an environment of low trust, observe today how stressed you are most of the time.

Notice the amount of energy you have to put into every communication simply because employees are skeptical. Think about what it would look and feel like if the environment could be transformed into one of higher trust.

When a work environment has high trust, it is a better life for everyone. In that culture, the organization will thrive, even if there are some tough challenges.

It is absolutely worth the effort to build a culture of low fear and high trust. Not only will your area shine in comparison to others, but you will be having a great time leading your highly effective group.

This is a part in a series of articles on “Successful Supervision.” The entire series can be viewed on http://www.leadergrow.com/articles/supervision or on this blog.

Bob Whipple, MBA, CPLP, is a consultant, trainer, speaker, and author in the areas of leadership and trust. He is the author of four books: 1.The Trust Factor: Advanced Leadership for Professionals (2003), 2. Understanding E-Body Language: Building Trust Online (2006), 3. Leading with Trust is Like Sailing Downwind (2009), and 4. Trust in Transition: Navigating Organizational Change (2014). In addition, he has authored over 500 articles and videos on various topics in leadership and trust. Bob has many years as a senior executive with a Fortune 500 Company and with non-profit organizations. For more information, or to bring Bob in to speak at your next event, contact him at http://www.Leadergrow.com, bwhipple@leadergrow.com or 585.392.7763


Successful Supervisor 82 Trust Improves Productivity

July 1, 2018

Every supervisor knows that productivity is a bottom-line measure that is the net result of the entire culture within her operation. Productivity takes everything into account and is a brutally honest reflection of the level of engagement of the workforce.

After studying trust for about 40 years, I believe that the level of trust within a group is an accurate predictor of the engagement of workers in the group and thus their productivity. I believe the average organization manages to extract only about 30% of the inherent productivity that is within the resources that are already onboard.

Even if I am wrong by quite a bit, it is still safe to say that any supervisor would be wise to first think about improving trust before requesting more resources to get the jobs done. In many of the organizations where I have worked, the productivity of the groups can be doubled and still have some headroom left before people are maxed out. That is why culture is often the sleeping giant in most organizations.

Let’s examine why the lack of trust is such a drag on organizational productivity by describing just a few example reasons why the correlation is so high.

Trust increases productivity

The enemy of productivity is waste. Here I am not talking about physical waste, although that is also involved. I mean that when someone is not performing at peak capability, his or her spare capacity is waste to the organization. Here are four ways that trust improves productivity directly.

1. People abusing the rules

It is easy to spot time being wasted when you observe how many workers do not follow the prescribed rules of the organization. If the morning break is set for 15 minutes, you will see workers away from their functions for roughly twice that time or even more.

The same phenomenon occurs with lunch breaks and smoke breaks (if allowed at all).

With a culture of high trust, people follow the rules as cast because they understand why they are important.

2. Poorly trained workers

In many cases the training given to new employees is sketchy and incomplete. If workers do not know how to run the operation as designed, then not only are they going to cause waste, they will be in danger of becoming injured in certain circumstances.

In a culture of high trust, supervisors are fully aware and follow the rules of proper training.

3. Distracting conversations and arguments

It is easy to observe people in production jobs spending a lot of time bickering among themselves. Curiously much of the wasteful banter is about not having adequate resources to do the work. I once knew a worker who would spend at least 70% of his day griping about that there is not enough time to get his work done.

Higher trust means that people get along better and do not get distracted by useless bickering. This is because higher trust is the result of respectful behavior.

4. Poor setups and staging of materials

If the area has not been set up for maximum workflow using “lean” principles and proper supply chain methods, then the workers are subject to be “waiting for work” frequently, which is a pure form of waste.

A culture of high trust is based on running the operation as it was designed to operate without glitches and hassles.

Trust improves morale

Everyone feels better in an environment of high trust. Coming to work is not a burden; in fact, many people truly enjoy the camaraderie at work. Great supervisors are able to achieve a light and buoyant environment.

1. Supervisors have gained the respect of the workers

Workers in a culture of high trust recognize they are there to do a job, but they are happy to do it because of the respect they are shown by supervision. When people are properly led, they almost universally enjoy their work and do it with pride.

2. Workers participate and buy into the vision

Workers understand that their labors are for a reason, and that reason is to make a better future for themselves. They do not feel ignored or beaten; rather, they are enlivened by the challenges that are put before them.

3. Rewards are appreciated

As the workers perform well over time, the management effectively reinforces the good work and that helps perpetuate the excellent productivity.

Take the time to invest in a higher trust culture in your organization. You will see remarkable improvements in productivity as a result.

This is a part in a series of articles on “Successful Supervision.” The entire series can be viewed on http://www.leadergrow.com/articles/supervision or on this blog.

Bob Whipple, MBA, CPLP, is a consultant, trainer, speaker, and author in the areas of leadership and trust. He is the author of four books: 1.The Trust Factor: Advanced Leadership for Professionals (2003), 2. Understanding E-Body Language: Building Trust Online (2006), 3. Leading with Trust is Like Sailing Downwind (2009), and 4. Trust in Transition: Navigating Organizational Change (2014). In addition, he has authored over 500 articles and videos on various topics in leadership and trust. Bob has many years as a senior executive with a Fortune 500 Company and with non-profit organizations. For more information, or to bring Bob in to speak at your next event, contact him at http://www.Leadergrow.com, bwhipple@leadergrow.com or 585.392.7763


Successful Supervisor 56 – Reducing Turnover

December 9, 2017

In any organization, voluntary turnover is a kind of waste that needs to be held to an absolute minimum. This is true for all levels in an organization and can be particularly important for supervisors.

Reducing employee turnover is not rocket science; however, many companies struggle with very high turnover year after year.

The common denominator of high turnover in organizations comes back to leadership issues. The old saying that “People do not leave organizations, they leave their supervisor” is generally accurate.

If you study the best companies to work for worldwide, you will discover they have a much lower turnover rate than the average numbers.

I believe having the kind of culture where employees are locked in with no desire to leave for any reason is a sustainable competitive advantage. It is easy to achieve if you follow the 10 rules listed below.

10 Low Cost Ways a Supervisor Can Drastically Reduce Turnover

1. Develop People – Organizations that focus on employee development enjoy higher employee satisfaction, which leads to lower turnover.

If each employee has a concrete development plan that is reviewed at least annually and contains a variety of growth opportunities, the employee will have little reason to look for greener pastures elsewhere.

2. Recognize Good Performance – Reinforcing people for doing good work lets them know they are appreciated. Tangible and intangible rewards are a great way to show appreciation for workers who excel.

This improves morale if done well. However, understand that reinforcement can be a minefield if it is not handled properly. Make sure employees receive sincere appreciation by supervision on a continuing basis.

3. Build Trust – By extending trust to employees, supervisors demonstrate their willingness to support them. This pays off in terms of higher trust on the part of employees toward the organization.

There is a whole science on how to build trust. By creating a safe environment, more trust in an organization will lead to lower turnover.

4. Reduce Boredom – Employees who are underutilized, tend to get bored and restless. If there is a vacuum of activity, people often get into mischief.

It is important for supervisors to craft job duties and responsibilities such that people are actively engaged in the work every day.

5. Communicate More – In nearly every survey on employee satisfaction, the issue of communication surfaces as either the number one or number two complaint.

Communication needs to be ubiquitous and consistent. It is not enough to have a monthly shift news letter or an occasional town hall meeting.

Communication needs to take many different forms and be a constant priority for the supervisor.

6. Cross Train – Employees, who have been trained on several different jobs recognize they are of higher value to the organization and tend to be less inclined to leave.

Along with the pleasure of having more variety of work, employees appreciate the ability to take on additional skills. Having good bench strength allows the organization to function well, even during times of high vacation or illness.

7. Don’t Overtax – During lean economic times, companies have a need to stretch resources as much as possible. Many organizations exceed the elastic limit of what employees can be expected to maintain long term. This leads to burnout and people leaving for health reasons or just plain quitting in disgust over the abuse.

It is important for supervisors to assess carefully how far resources can be stretched, because going beyond the elastic limit guarantees a high level of employee turnover.

I believe this rule is habitually violated in many organizations, and they pay for it big time. Stretching people too far is a false economy.

8. Keep It Light – When managers apply constant pressure to squeeze out the last drop of productivity, they often go over the line, and it becomes counter productive.

If leaders grind people down to a stump with constant pressure for perfection and ever higher productivity, the quality of work life suffers. Employees can tolerate a certain amount of this for some time, but eventually they will break down.

It is smart to set aggressive goals, but very important to have employees believe the stretch goals are attainable.

One good way to provide this assurance is to have the employees themselves participate in setting the goals.

The best companies find ways to work in a little fun somewhere, even (and especially) in high pressure situations.

9. Feedback Performance – there needs to be a constant flow of information on how all employees are doing in each area. People who are kept in the dark about their performance become disillusioned and cranky.

The simple kindness of letting people know how they are doing on a daily or weekly basis pays off in terms of lower turnover.

10. Train Group Leaders – All levels of supervision need to be highly proficient at creating an environment where the culture is upbeat, positive, and has high trust. This does not happen by accident, or simply by desire. It takes work and lots of emphasis by the supervisor.

These are 10 ways in which supervisors can lower the level of turnover in their organization. The magic here is not any new discovery; but the consistent application of these principles will make a huge difference in any organization.

The good news is that the items mentioned above are not very expensive. They are all common sense. Too bad they are often not common practice.

This is a part in a series of articles on “Successful Supervision.” The entire series can be viewed on http://www.leadergrow.com/articles/supervision or on this blog.

Bob Whipple, MBA, CPLP, is a consultant, trainer, speaker, and author in the areas of leadership and trust. He is the author of four books: 1.The Trust Factor: Advanced Leadership for Professionals (2003), 2. Understanding E-Body Language: Building Trust Online (2006), 3. Leading with Trust is Like Sailing Downwind (2009), and 4. Trust in Transition: Navigating Organizational Change (2014). In addition, he has authored over 500 articles and videos on various topics in leadership and trust. Bob has many years as a senior executive with a Fortune 500 Company and with non-profit organizations. For more information, or to bring Bob in to speak at your next event, contact him at http://www.Leadergrow.com, bwhipple@leadergrow.com or 585.392.7763


Successful Supervisor 51 – Employee Value Proposition

November 4, 2017

There is a relatively new term being batted around in HR circles. The term is “Employee Value Proposition.” I want to discuss the concept here and suggest that some of the ideas would be helpful to any supervisor.

I understand that supervisors need to adhere to policies and procedures set from a higher level, but the extent that you can lobby for more rules consistent with maximizing EVP, the better your organization will run.

The concept of Employee Value Proposition is very simple. It is the appeal employees feel for working in your organization. The concept takes in all of the policies and procedures that impact personnel at all levels.

If your HR policies are such that employees are thrilled to be working in your organization, then you are in good shape. If the rules make some people wish they were elsewhere, then there is work to be done.

The value proposition is more than rules, however. How employees are treated by all levels of supervision and all other employees is a large part of EVP. A high EVP is a reflection of a great culture where employees not only value the rules but appreciate how they feel about the work.

The vision is to be so appealing to employees that your organization becomes like a magnet for the very best resources. It is easy to recruit the best people and also to retain them with significantly less turnover. The objective is to have people become convinced that they would be fools to ever think of leaving. They know that there is no grass greener than where they are right now.

Few organizations are able to achieve that level of appeal, but I know of several groups that are close to it, and they have several hundred people apply for any posted job. Their turnover is a tiny fraction of the average turnover in our region and those few people who leave do so because of a spouse leaving the area or some other mechanical force that literally pries them away from the organization.

Attracting the best employees gives an immediate benefit because we all know that hiring a dud of an employee is like an albatross on the entire operation. Having low turnover gives numerous financial benefits that really add up. The cost of recruiting and training go way down for organizations with high EVP. The savings go directly to the bottom line.

Talentsmoothie.com suggests two main reasons for a low Employee Value Proposition. They are as follows:

1. Not differentiating your own organization from the competition. If several groups have the same conditions for employees, then there is no sustainable competitive advantage, but it is not enough to be better than the other groups.

You need to make the difference obvious to current and prospective employees. It is vital to have a solid list of the reasons why your organization is a better place to work than the similar type of organization down the street.

To do this well, you need to not only know your policies and climate well, you also need to know what other competing companies are doing. This means doing a lot of solid research and then documenting your advantages.

2. The second factor that is all too common is that the branding is appealing, but it does not fully reflect daily practices throughout the organization.

The hypocrisy of saying one thing but doing something different will destroy EVP in a heartbeat. It is vital that all supervisors and managers know what is being advertized and are actually doing that on a daily basis.

Pay attention to the Employee Value Proposition for your organization and for your area within it. The benefits of maintaining a high EVP are huge, but they must be earned and be real to provide the advantages.

This is a part in a series of articles on “Successful Supervision.” The entire series can be viewed on http://www.leadergrow.com/articles/supervision or on this blog.

Bob Whipple, MBA, CPLP, is a consultant, trainer, speaker, and author in the areas of leadership and trust. He is the author of four books: 1.The Trust Factor: Advanced Leadership for Professionals (2003), 2. Understanding E-Body Language: Building Trust Online (2006), 3. Leading with Trust is Like Sailing Downwind (2009), and 4. Trust in Transition: Navigating Organizational Change (2014). In addition, he has authored over 500 articles and videos on various topics in leadership and trust. Bob has many years as a senior executive with a Fortune 500 Company and with non-profit organizations. For more information, or to bring Bob in to speak at your next event, contact him at http://www.Leadergrow.com, bwhipple@leadergrow.com or 585.392.7763