Studies show that employees want and need job security. Studies also show that employees are more productive and loyal when they don’t have to worry about layoffs.
But experts in building high-growth and high-profit companies insist that employees should not be promised continued employment. In fact, to build a great company, it is essential that many employees must be let go.
So what gives? How can the two co-exist?
It’s a delicate balance, no doubt.
Job Security in the Hands of the Employee
First of all, leaders like Jack Welch say that the “A” players must be made to feel secure. “C” performers need to feel insecure. In effect, employees should be clear that they control their own level of security. All they have to do is hit their performance targets. This assumes the company adheres to the “best practice” of having clear and quantifiable goals for every employee, and regularly tracks performance in an objective, non-arbitrary manner.
No Curveballs
Security does not mean no change. Change happens. But employees want to know and trust that they won’t be thrown sudden curveballs. They need to know that their manager will keep them informed on topics that impact them and their company.
Good managers build that trust by regularly communicating relevant issues and developments to their employees.
Wise and Prudent Management
Employees feel secure when they see their managers and owners taking great care and prudence in managing the company and its resources. So avoid saying or doing things that seem cavalier. Never say or act as if the future of the company, or the security of the employees and their paychecks, were trivial matters.
Let Them See You Care for Others
Employees closely watch every move you make and every word you say, on every subject. They notice how you talk about other employees. Take advantage of this.
Be open and clear about how you care for them.
Avoid Unproductive Talk
Business owners and managers deal with many issues that could impact the company and its employees. For example, you enter into discussion to sell your business. It is a huge mistake to tell your employees, because you have nothing concrete to tell them, nothing they can rely on. It just causes needless worry. If and when a deal is reached and the future is certain, you’ll have plenty of time to tell them and help them plan accordingly. So, as a business owner and manager, be selective in what you communicate. Caring for your employees does not mean telling them everything.It means caring for their well-being and protecting them. Just as a mature person would not tell a friend, loved one or colleague anything that would only hurt and have no value to them, do the same for your employees.
This article originally appeared in The Business Owner Journal, the periodical of choice for owners of small and midsize private businesses. All rights reserved, D.L. Perkins LLC. © 2012.
This publication is intended to provide general information on the subject matters covered. It is sold and distributed with the understanding that neither the publisher nor any distributor or advertiser is engaged in providing legal, tax, insurance, investment or other professional advice. The advice of a qualified professional should be sought before any reader applies a concept presented herein to his or her particular situation or business.
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