Treating employees like customers is KEY to lasting business success. Here’s why! [Tuesday: Return Driven Strategy]
Miles Everson’s The Business Builder Daily speaks to the heart of what great marketers, business leaders, and other professionals need to succeed in advertising, communications, managing their investments, career strategy, and more.
A Note from Miles Everson:
Welcome to this week’s edition of “Return Driven Strategy (RDS)!”
As someone with over 30 years of experience in the business and consulting industry, I’ve found the RDS framework to be a game-changer in managing my team. That’s why every Tuesday, we publish articles about RDS to empower you as a business leader and manager in today’s ever-changing work landscape.
Today, let’s delve deeper into the 9th tenet of RDS: Engaging Employees and Others.
Read on to discover the importance of choosing and incentivizing the RIGHT employees for your firm.
Miles Everson
CEO, MBO Partners
Chairman of the Advisory Board, The I Institute
Return Driven Strategy
Engaging employees and others is the Return Driven Strategy (RDS) framework’s 9th tenet. This talks about how employees must be approached and treated by firms to achieve the other higher tenets.
Now, you might be wondering:
“Is this tenet placed ‘so low’ in the hierarchy of tenets because employees are less important?”
Not really!
In fact, having competitive offerings and driving high business returns are only possible with having the RIGHT employees in the RIGHT roles.
… and one of the keys to engaging these employees?
Thinking of them as customers!
Photo from AIHR
Like with customers, high-performing companies recognize their employees’ unmet needs too. Beyond offering competitive compensation, such firms pave ways for employees to create wealth and achieve fulfillment in other areas in life, such as through different benefits and perks.
The result?
Employees find it worthwhile to give their time and effort for such companies, setting the stage for above-average services and high returns.
That’s not all…
Such firms also avoid mismatches between company goals and employees. Employers reach out to candidates that align best with the firm’s goals to have the right people in the right roles.
For example: A company that wants to address its labor gaps on a flexible timeline would find independent contractors and freelancers better suited instead of people looking for full-time jobs.
Management asks:
“Who are the right talents for the role and how should we pay them?”
These managers believe that with proper planning, choosing and properly incentivizing the right employees will make the delivery of offerings and services much easier in the long run.
On the other hand, failure to fulfill the above turns away the best employees—a disastrous result we witnessed during “The Great Resignation” in 2021 and 2022, where nearly 100 million U.S. workers quit their jobs for a better work life and personal life balance.
Even in 2023, the corporate business world still suffers from turnover rates of up to 60% according to a Forbes article.
[Turnover Rates: The rate at which employees move in and out of a company.]
These statistics show that like customers, employees who are dissatisfied with their employers’ offerings and management practices will be more vulnerable to resigning or turning towards the firm’s competitors.
Because of that, employee retention has become one of the top priorities for many employers, who now seek to implement better employee engagement strategies such as work flexibility and other growth opportunities in the workplace.
—
The importance of engaging and compensating employees properly is emphasized by Professor Joel Litman and Dr. Mark L. Frigo in their book, “Driven.”
According to the authors, “losing great employees unnecessarily” through bad employee management sacrifices a firm’s long-term growth prospects and opportunities. It’s no wonder then that many companies are now pursuing strategies to retain top talents.
Remember: Having the RIGHT employees is necessary in delivering competitive offerings and driving high business returns. However, such success can only become consistent and long-lasting with the RIGHT employee management strategies in place.
We hope you learned new insights from today’s article!
If you’re looking to gain a better understanding of Return Driven Strategy and Career Driven Strategy, we highly recommend checking out “Driven” by Professor Litman and Dr. Frigo.
Click here to get your copy and learn how this framework can help you in your business strategies and ultimately, in ethically maximizing wealth for your firm.
(This article is from The Business Builder Daily, a newsletter by The I Institute in collaboration with MBO Partners.)
About The Dynamic Marketing Communiqué’s
“Tuesdays: Return Driven Strategy”
In the book, “Driven,” authors Professor Joel Litman and Dr. Mark L. Frigo said that the goal of every long-term successful business strategy should incorporate the combined necessity of “making the world a better place” and “getting wealthy.”
That is why they created Return Driven Strategy and Career Driven Strategy―frameworks that were built to help leaders and professionals plan and evaluate businesses so they can also help others achieve their organizational goals and career goals.
The frameworks describe the plans and actions that drive returns for anyone in an organization such as independent contractors, marketers, brand managers, communicators, and other people in any field. These actions lead to the creation of wealth and value for customers, employees, shareholders, and the society.
Every Tuesday, we’ll highlight case studies, business strategies, tips, and insights related to Return Driven Strategy and Career Driven Strategy.
In planning, building, or managing brands and businesses, these strategies, case studies, and guidelines will help you choose what specific actions to take and when to take them.
Hope you found this week’s insights interesting and helpful.
Stay tuned for next Tuesday’s “Return Driven Strategy!”
Cheers,
Kyle Yu
Head of Marketing
Valens Dynamic Marketing Capabilities
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