Director logo
letter from america
Respect your employees, it's a profitable strategy
Comment by Jack Welch

Whether you're a longtime leader or an employee just starting out, be sure that in everything you do, you value human dignity. OK, maybe that advice sounds a little vague. Put it this way: businesspeople have to confront dilemmas and make tough calls every day. You can try to solve them by going with your gut instincts. You can do nothing and hope for the best. You can protect yourself by playing politics. Or you can make choices based on the indisputable principle that all employees deserve to have their voices heard and to be treated with respect.

No, I haven't gone soft. This is a case I've made before. And it's not just the right thing to do from a moral perspective, but it invariably makes a company more competitive—a win-win situation.

Should that respect extend to explaining all critical management decisions to employees? Well, of course it should. While managers should be very careful not to demonize anyone, providing explanations about why Joe was asked to move on or why Mary was transferred to the Hong Kong office can make for some great teaching moments. "Joe was a nice guy and we wish him well, but he didn't demonstrate the company's key value of sharing ideas across business units," you could say, or "Mary was transferred because she's one of our best, but to move forward in this organization, you need global experience."

Ultimately such candour gives employees the tools with which they can control their own destinies. They know which kinds of behaviours are rewarded by the company and which are not, instead of having to guess. That knowledge allows them to make adjustments, if needed, and plan the years ahead accordingly. It gives them agency.

As a leader, it's imperative that you find ways to infuse the work with excitement and meaning, no matter how mundane it is. So celebrate small victories and milestones, and reward employees who outperform the norm. And here's an opportunity to give people a chance to be heard: hold brainstorming sessions regularly, and when individuals come up with process improvements, honour them as heroes.

Sound daunting? It is. But being a manager requires that you energize and engage your team, encouraging each person to take pride in what they do. But how do you cope with a boss or fellow employee who is on the way out? In recessionary times like these, as companies continually look for ways to cut costs, purges are necessary to remove incompetent managers, but just as often, they usher out good people who haven't performed quite well enough.

In such cases, it's only human to want to keep your distance from the person whose job is no longer secure. People don't want to be associated with a goner, or they simply don't know what to say. It's just so awkward. And so they hunker down in their offices or quietly start to ingratiate themselves with the boss's boss, just in case.

Try something else. Start a conversation with the outgoing boss, make eye contact and resist the temptation to avoid the issue in every email. Your compassion will help to keep your team on track, and for years to come, your decency will be remembered, testament to your character.

This is not just about reminding people to play nice—some might be wondering whether we're going to discuss helping companies to win. But giving employees opportunities to voice their opinions and treating them with respect, very fortunately, do just that. When you've got a question about your people, no matter what it is, these two principles are a big part of the answer.

What do you think?

Send us your views
About Us | Contact Us | Director Publications | IoD | © 2011 Director Publications