Companies That Invest in Employees' Happiness Rarely Regret ItBy Cindy Krischer Goodman
For a lot of small business CEOs, the top goal over the last couple of years was survival. But not for Christine Barney. Over the past six months, Barney picked up strength in the public relations field by gobbling up competitors Pac Man style, last week adding the 21-year old Coral Gables , Fla., firm Thorp & Co.
The acquisition adds expertise in new areas and puts Barney's Miami firm, rbb Public Relations, in position to emerge stronger than before the economy soured. But ask Barney about the single most important factor in her firm's success, and her answer isn't the ability to land big accounts; it is nurturing her employees. As an employee, it's easy to see how creating a great place to work would make a huge difference in the success of a business. Make me feel valued, so the thinking goes, and I will work hard for you — make sure your customers are happy. But for some reason, I see too many business owners who don't acknowledge the correlation. Instead, their employees feel used and trapped in their jobs. And as a result, they're reluctant to help the organization succeed. In fact, a recent study by Hewitt Associates, conducted in late June, saw employee engagement drop to the lowest levels Hewitt has seen in 15 years. Further, the Hewitt study found organizations with high levels of engagement (65 percent or greater) outperformed the total stock market index and posted total shareholder returns 19 percent higher than the average in 2009. On the other hand, companies with low engagement (40 percent or less) had a total shareholder return that was 44 percent lower than the average. The study underscored what may be the big lesson of the recession: high employee engagement, customer satisfaction and financial performance are closely linked. The companies expanding, taking over competitors and shaping their industries are those with happy workers, smart CEOs and good fiscal management. "Those companies who have had massive layoffs or haven't really invested in their employees are not really poised for a rebound when things get better," Florida State University management professor Bill Anthony said. But Barney figured that out years ago. Public relations is a 24/7 business, and rbb's employees must respond to client needs at all hours. That's not exactly the best recipe for work life balance. But even while the firm has high expectations of its staff, it has spent the past few years creating an employee-driven workplace. Elements include an open, cheery workspace to promote creativity and teamwork, and flexible work schedules and the tools — including laptops and cell phones — that allow employees to work from anywhere. The strategy works, said Susan Gilden, a seven-year employee at rbb. "We work hard, not because we're in fear for our jobs but because we feel as if we have ownership. Clients sense that, and that's what got the firm through in a difficult economy." It also has helped rbb become recognized by several publications as one of the area's best companies to work for. Barney said her employee culture also has attracted one-time competitors eager to join forces. The acquisition of Thorp & Co. is rbb's second this year; last spring, rbb integrated its operations with that of Haber & Quinn of Fort Lauderdale, Fla. The combined operations brings rbb to a total 36 employees, adds expertise in financial services and issues management — and positions it as a strong regional player poised for growth. Folding in new staff has gone smoothly. "Our culture is well-defined. It's not squishy. People understand what's expected and how to treat each other." Career Xchange, a survivor in the hard-hit staffing industry, also has pressed its advantages during the recession. The South Florida firm had acquired three smaller companies before the economy soured. This year, it aligned itself with a West Palm Beach, Fla., staffing company, and it currently has another acquisition in the works. But it decided not to purchase a medical staffing company after discovering that the firm's employees were working 13-hour days. Sue Romanos, CareerXchange president and CEO, says her company, while financially conservative, views employees as partners that are key to survival. "We're close to our employees," she said. "It is what has pulled us through hard times." Romanos said business owners typically spend time focusing on finances when things get tough. "It's just as important to keep in mind you have employees and they are your business," she said. "The most important asset is human capital. Financially strong companies know that." Indeed, they do, said Trudy Evans, a strategic business consultant and president of The Raven Group in Fort Lauderdale. Evans said successful companies, both during the recession and in healthier economic times, are run by CEOs who acknowledge the contributions of rivals and inspire their workers to outperform competition. "Look for a place that has happy employees, and it will be a challenge to find poor results," she said. (c) 2010, The Miami Herald. Distributed by McClatchy-Tribune Information Services. |
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