Value Your People – The Key to Boosting Business Success

We often hear that people are a company’s most valuable asset, but how do we truly embrace that concept? More importantly, how can we facilitate a mutually beneficial outcome such that the company not only receives greater value from the employee but the employee realizes increased personal value as well? Leadership plays a pivotal role in this journey, demonstrating vision, courage, influence, and commitment. Done right, the potential outcomes are transformed people creating transformed businesses.

Role of Leadership in Employee Engagement

Strategic Organizational Development Integration

One of the fundamental ways to value your people is by integrating them into the company’s strategic core. As part of the executive team, Organizational Development (OD) leaders play a crucial role in strategic planning and aligning talent management with business goals. Their data-driven OD practices can demonstrate the tangible impact of these initiatives, ensuring that decisions are informed by comprehensive analytics and empowering OD professionals to drive engagement. This integration makes every employee feel integral to the company’s success, fostering a sense of empowerment.

According to a 2023 study by Gartner, organizations that integrate OD into strategic planning are 2.1 times more likely to outperform their peers in financial metrics and employee retention. This integration ensures that the company’s talent strategy supports its overall business strategy, leading to better alignment and more effective execution.

Investment in Development

Investing in development is a declaration of faith rooted in a core value. It signifies the belief that each individual possesses greater potential than they may realize and underscores the corporate value of aiding individuals in recognizing and reaching their potential. Leadership must commit to ongoing employee development, provide opportunities for continuous growth, and embrace successes and failures. This goes beyond occasional training sessions; it necessitates creating a learning culture. Leaders should lead by example, ensuring that everyone comprehends the expectations for development and actively participates in development activities. This approach enables companies to expand and retain top talent, ensuring their workforce remains competitive.

A 2022 report from LinkedIn Learning revealed that companies investing in comprehensive training programs see a 250% higher rate of employee retention and 24% greater profit margins. Continuous learning opportunities help employees develop new skills, adapt to changes, and make them feel valued, boosting morale and engagement. This underlines the importance of investing in employee development as a critical strategy for business growth.

Recognition and Reward Systems

Effective leadership involves more than recognizing effort and rewarding employees for outcomes that matter. It’s about making them feel valued and appreciated. Structured recognition programs and performance-based rewards can significantly boost morale and productivity. Leaders owe their people the direction that makes development investment worthwhile, ensuring that the outcomes positively impact corporate goals. In this way, rewards recognize efforts that affect the business. Business leaders should understand that employees who feel valued and rewarded for their contributions are likelier to engage and go above and beyond, making these systems a crucial part of the business strategy. This emphasis on recognition and rewards makes employees feel appreciated and motivated to contribute to the company’s success.

A 2023 Gallup survey found that employees who feel adequately recognized are 2.7 times more likely to be highly engaged at work. Recognition and rewards are powerful tools for enhancing employee engagement, increasing productivity, and reducing turnover rates. Leaders should ensure that recognition is timely, meaningful, and aligned with company values and goals, which can significantly boost morale and productivity.

Creating a Culture of Engagement

Culture plays a crucial role in employee engagement, and culture starts with everyone pulling on oars together in an aligned fashion. This means everyone understands the business’s purpose (or mission), the plan for achievement, the part they play (which oar is theirs), and perhaps most importantly, why they were picked. Most people have no idea why they were picked from a large pile of resumes. In the absence of being told, they will create their narrative. And we wonder where misalignment begins. A culture of engagement requires that people know why they are on the team and what was special about them that got them on the team. A culture of engagement should promote creativity, discovery, experimentation, and learning in combination with leadership awareness, trust, and feedback, which encourages employees to invest not only their best effort but also their discretionary best effort. That is a willingness to transcend their effort beyond the normality of the job and to inject extra passion, energy, time, care, and personal pride into the challenge of achieving something bigger than themselves.

Engagement also extends to being heard. Leaders must listen in small and large ways and respond meaningfully to what they hear. Whether one-to-one conversations, team conversations, surveys, or other feedback options, the key is to listen and validate the interpretation of what’s being heard. Responses could reflect change or continuation, but in both cases, transparency and context are essential to rewarding and improving engagement so that employees feel valued, fostering a deeper connection to their work and the company’s successes.

A 2022 study by McKinsey & Company found that organizations with high employee empowerment and involvement are 1.5 times more likely to outperform their peers in innovation and growth metrics. Creating a culture where employees feel empowered and supported can lead to higher engagement and performance.

Empowerment and Autonomy

Empowering employees involves giving them the autonomy to make decisions and contribute ideas. This sense of ownership can drive innovation and creativity as employees feel more connected to the outcomes of their efforts. Culture plays a significant role in creating a psychologically safe climate where employees can take risks and express ideas without fear of negative consequences, unlocking their full potential and driving innovation.

A 2023 study by Harvard Business Review identified psychological safety as the most critical factor for high-performing teams, emphasizing the importance of creating an environment where employees feel safe to take risks and express ideas without fear of negative consequences. Empowering employees by creating a psychologically safe climate can unlock their full potential and drive innovation.

Alignment of Values and Practices

Ensuring that organizational values are reflected in everyday practices is essential for maintaining engagement. Trust and engagement can erode when there is a disconnect between stated values and actual culture. Executives should understand that supporting cultural ambassadors within the organization who embody these values can help reinforce the desired culture, making this alignment a crucial part of their role. This emphasis on alignment makes employees feel secure and aligned with the company’s culture, fostering a sense of belonging and trust.

Companies like Zappos have successfully aligned their values with their practices, resulting in a robust and engaged workforce. Zappos’ commitment to customer service and positive workplace culture has been instrumental in its business success, demonstrating the power of aligning values with practices.

Driving Innovation Through Engagement

Power of Discretionary Effort

Engaged employees are more likely to put in discretionary effort—going above and beyond their job descriptions to achieve organizational goals. This extra effort is a crucial driver of innovation, as engaged employees are more motivated to solve problems, develop new ideas, and improve processes.

A 2023 report by Aon Hewitt shows that companies with high employee engagement levels report 11 to 55% higher productivity and up to 27% higher profitability than those with low engagement. Discretionary effort from engaged employees translates into tangible business outcomes, including innovation and competitive advantage.

Encouraging Creativity and Innovation

A culture that values and encourages innovation can lead to significant business value. Companies can drive continuous improvement and breakthrough innovations by fostering an environment where employees feel safe to experiment and take risks. Leadership is crucial in setting the tone for this culture, providing employees with the support and resources needed to innovate.

IDEO, a global design and innovation company, is renowned for its creative culture. IDEO encourages employees to think creatively and experiment with new ideas, resulting in innovative solutions and products that have transformed industries. By prioritizing a culture of creativity and innovation, companies can harness the full potential of their workforce.

Implementation Strategies

Executive Sponsorship

For organizational development initiatives to be successful, they need strong support from top leadership. Executive sponsorship ensures that valuing employees is a core business priority, backed by the necessary resources and commitment.

Senior leaders must champion employee-centric initiatives, demonstrating their importance through actions and communications. This top-down approach helps embed the value of people into the company’s DNA, driving a culture of engagement and performance.

Transparent Communication

Open and transparent communication channels build trust and ensure employees are informed and involved in the company’s journey. This transparency can enhance engagement and align employees with the company’s vision and goals.

A 2023 MIT Sloan Management Review study found that transparency and open communication from leadership are crucial for fostering trust and engagement among employees. Leaders should regularly communicate company goals, challenges, and achievements, fostering a sense of inclusivity and shared purpose.

Regular Review and Adaptation

Finally, continuously assessing and adapting organizational development strategies to meet evolving business needs and employee expectations is vital. This iterative approach ensures that companies remain responsive to changes and can maintain high levels of engagement over time.

By implementing regular feedback mechanisms and staying attuned to employee needs, companies can make informed adjustments to their engagement strategies. This adaptability helps sustain a positive and productive work environment, driving long-term success.

Valuing People – A Boost to Your Business

Valuing your people is the most powerful strategy to boost your business. Leadership and culture are the cornerstones of employee engagement, driving innovation and creating significant business value. By integrating organizational development into strategic decision-making, investing in development, recognizing and rewarding employees, and fostering a culture of engagement and innovation, companies can truly embrace the concept that their people are their most valuable asset.

Let’s go from strategy to results. Get in touch today to explore how to start valuing your people and transforming your business.