Relationship Woes?

Good relationships aren't difficult -- bad relationships are! In a business environment, poor relationships are also expensive. An Adecco Staffing survey of 1,000 workers reports that 49 percent of employees say yes, their relationship with their boss directly affects their productivity.

Yeah, it's that important.

Many managers don't really understand what motivates and matters to their employees. We sometimes assume, or think we know, but we don't. Let's look at another study, this time ranking the factors that most influence employee performance. In this study, not only were employees polled, but managers were also asked to predict what those employees' rankings would be. Were the managers right? Take a look.

What Managers Expected Employees to Say

1. High wages
2. Job security
3. Promotion within the company
4. Good working conditions
5. Interesting work

What Employees Really Say Influences Them

1. Full appreciation of work done
2. Feeling of being in on things
3. Help on personal problems
4. Job security
5. High wages

Feeling appreciated and clued-in ranks higher than wages largely because to be appreciated and well-informed prepares us to make outstanding contributions, meet critical goals, and make smart decisions that will result in career growth.

Think of the stereotypical editorial assistant, fetching coffee and doing front-line work -- the pay's not high, the prestige isn't high, and he hasn't chosen that environment to learn different blends of coffee beans. He's learning the business, making a contribution to the big picture, and working toward a fulfilling career.

Make time for important conversations...

Do you have to know the names of your direct reports' pets? Of course not, but knowing your employees' life and career goals helps you leverage what you and your employees have to offer one another into a healthy, productive relationship. A global consumer response survey of 1,625 workers gave some insight into welcome conversation. What aspect is most important when employers communicate with workers?

• Giving insights on how to be more effective (52 percent)
• Showing how to fit into the company's vision (47 percent)
• Explaining the company's vision (45 percent)
• Engaging on a personal level (41 percent)

Build those relationships. To your direct reports, you are the company. The company's strategic goals and how it all fits together comes from you. If you can't sum up those strategic goals, go to your boss, who may go to her boss... It's a conversation that may have unexpected benefits!

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The Chicken or the Egg?

In recent years, many studies have shown that high performing companies have employees with high employee morale, but which came first? Do the employees have high morale because their companies are doing well, or is the company performing well because the employees have high morale?

Morale by a Nose!

In The Enthusiastic Employee (Wharton School of Publishing), we see that high morale does indeed have a causative effect. The stock of companies which showed high morale in 2004 outperformed those in the same industries in 2005, as compared with more than 5,500 other companies in the same industries. Those stock market results are largely driven by earnings statements, creating a visible cause-effect relationship between morale and profit.

How is your company morale? Do you know?

Let your workers do the talking...

Marketers are increasingly investing in non-traditional marketing methods such as viral marketing, targeting trendsetters in conversational marketing. You may have the world's best marketing force already in your employ. Don't underestimate the power of employees who love their jobs, and their companies. Tap into the "viral marketing" you already have at your fingertips, and make sure it's working for you.

Barr Corporate Success is a results-oriented consulting firm helping business leverage leadership, build teams, foster accountability, increase profits and sustain long-term growth. To enjoy the benefit of more than 20 years of management excellence, please e-mail Krissi Barr, krissi@barrcorporatesuccess.com.

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Retention, Retention, Retention!

We often hear the truism that the three most important factors in real estate are: location, location and location. A less well-appreciated truism is that one of the most important factors in profitability is one that bears repeating: retention, retention, retention. After all, how can you build intellectual capital, maintain an integrated, functioning workforce, and rapidly adapt to changing market forces if you're continually finding, selecting and training candidates? Capitalize on the investment you've made in the training of employees, and the value you receive from those employees' accumulated knowledge -- don't let the good ones go if you can possibly avoid it.

You will lose at least 6 months' salary -- and up to 18 months' salary, for knowledge worker positions -- to recruit, hire and train a new employee.

No company or manager can control all the forces that might cause employees to leave. Spouses relocate, taking your good people with them... a whole host of other reasons companies cannot control. And of course, if an employee simply cannot meet expectations, both you and that employee would be better served by their finding a new role, either with your company or elsewhere.

However, many, many valuable employees leave for reasons that we can, and should control if we know what's good for business.

Why Do They Leave? Managers might be surprised to find out why workers change jobs. What would your guess be? More money? Nope. Although 97 percent of workers think financial compensation is one of the most important aspects in the workplace, it is not the main reason they change jobs. A Spherion study asked 1,996 randomly selected employed workers what the most important reasons were to change jobs. They answered:

• Growth and earnings potential (30 percent)
• Time and flexibility (23 percent)
• Financial compensation (22 percent)
• Culture, work environment (22 percent)
• Benefits (12 percent)

More cited growth potential than any other single consideration. Just as many listed work culture and environment as important reasons to make a job change as listed financial compensation. Flexibility on time and location is of great importance to those aspiring to excel both professionally and in their family lives. Employers are now facing the challenge of generations interested in self-actualization in both their work and personal lives.

Some managers might be tempted to throw up their hands and roll their eyes, wondering, "Just how far am I supposed to go to keep people happy?" That frustration is understandable, given today's "do more with less" culture.

The good news is that it is well within your power to increase retention -- and the performance of employees who stay -- with some fairly simple interpersonal skills.

• Pay attention to the career arcs of your direct reports, because they do.
• Be flexible when you can be, any way you can be, so employees can have careers and lives.
• Check out salary trends for your industry, so you don't lose $20,000 trying to save $3,000.

Paying attention can really pay off.

Barr Corporate Success is a consultancy firm dedicated to producing amazing results for businesses from Mom & Pop shops to Fortune 500 corporations. If your business is experiencing retention difficulties, it's likely a sign that a change is needed. Barr Corporate Success can show you the way.

For more information, please e-mail Krissi Barr at:

krissi@barrcorporatesuccess.com

or see our website at www.barrcorporatesuccess.com