Friday, October 15, 2010

Making your employees happy: It isn’t just about the money

There is this really fun slideshow on titled “six cool companies to work for.” The slideshow basically lets us in on the perks offered by a few companies that seem really great to work for.

This reinforces one of the very first things we learned in our introduction to management class: There are different ways to make our employees happy, money is just one of them (a very significant way, though).

Money alone might be able to get your employees to show up to work, but it might not necessarily make your employees happy and excited about their work, and it exposes you to the risk of competitors stealing your key employees with higher paychecks. But by doing things like giving your employees perks, creating a pleasant environment for them to socialize and collaborate, and letting them make their own decisions, companies can get employees to really love their jobs.

Among the many benefits of happier more involved employees is that they are more productive, they provide your customers with better service, they come up with better ideas, and they can work better with their co-workers. To put it simply, happy employees = sustainable competitive advantage. Sustainable in a sense that it will be difficult for your competitors to poach your employees (it is harder to buy the loyalty of a happy employee by simply offering a higher pay) and that your company’s reputation for happy employees will allow you to keep attracting good talent.

By taking care of their employees needs through a diverse mix of salary, perks, flexibility, empowerment, and etc, employers stand to unlock the value of their greatest asset; their people. This competitive advantage of a talented workforce will keep a company relevant and allow it to keep growing and increasing market share.

If you have anything you would like to share, please don’t hesitate to comment. Thank you for reading, and may you always sustain good returns on your portfolio. Have a good one!