{"id":84489,"date":"2024-08-14T07:15:09","date_gmt":"2024-08-14T11:15:09","guid":{"rendered":"https:\/\/diymarketers.com\/?p=84489"},"modified":"2024-10-11T11:17:42","modified_gmt":"2024-10-11T15:17:42","slug":"employees-first","status":"publish","type":"post","link":"https:\/\/diymarketers.com\/employees-first\/","title":{"rendered":"Why Your Business Needs a Employees First Culture"},"content":{"rendered":"

What would happen if you had a people first culture?<\/p>\n\n\n\n

I\u2019ve been in marketing for almost 40 years. So, it wouldn\u2019t surprise you if I said the customer should be at the center of your business. After all, customers pay our bills and our salaries\u2014so yeah, customers matter.<\/p>\n\n\n\n

But over the years, I\u2019ve noticed something weird and I have no idea why this is because it makes no logical sense. <\/p>\n\n\n\n

Most small business owners put 90% of their sales and marketing focus on getting customers. But getting customers is expensive. Marketing is expensive. The cost of acquiring a new lead<\/a> is anywhere from $18 to $28! That\u2019s a lot.<\/p>\n\n\n\n

At the same time, everyone KNOWS that loyal customers are the most profitable customers. And yet, business owners aren\u2019t as excited about these types of marketing strategies even though they cost much less and require far less marketing effort. Go figure, I don\u2019t get it.<\/p>\n\n\n\n

People First Culture: Why Employees are an Often Ignored Marketing Asset<\/h2>\n\n\n\n

So, let\u2019s talk about a hidden, ignored and underutilized marketing resource\u2014your employees.<\/p>\n\n\n\n

Think about it. Your employees are literally responsible for everything that creates your product or service, delivers your product or service, maintains your product or service, etc. Without employees (unless you\u2019re a solopreneur), you have no business.<\/p>\n\n\n\n

Now, we\u2019ve all been to businesses that say, \u201cEmployees are our greatest asset.\u201d Oddly enough, those who say it most often show it the least. Instead, they complain about employees not caring, not working, not putting in the effort.<\/p>\n\n\n\n

When employees understand and connect with the company’s mission, they are more likely to feel valued and motivated, contributing to a positive workplace culture.<\/p>\n\n\n\n

In the end, this type of attitude is hurting your profitability.<\/p>\n\n\n\n

What is a People First Culture?<\/h2>\n\n\n\n

An people-first culture is a workplace philosophy that prioritizes employees\u2019 well-being, satisfaction, and development. It is a commitment to treating employees as the most valuable asset and nurturing their growth and happiness. A people-first culture fosters a sense of belonging, trust, and empowerment, resulting in higher engagement, productivity, and innovation. It is a people-first approach that recognizes the value of employees as the driving force behind innovation and growth.<\/p>\n\n\n\n

Customers Evaluate Companies Based on How They Treat Employees<\/h2>\n\n\n\n

Since 2015, JUST Capital,<\/a> a non profit organization<\/a> has surveyed nearly 200,000 Americans to find out what they call \u201cThe People\u2019s Priorities\u201d. The results of this annual survey are designed to provide a roadmap for companies to focus on and track.<\/p>\n\n\n\n

\u201cYear after year, Americans say that companies should put workers squarely at the heart of their business practices, foremost by paying their workers a fair and living wage. Indeed, Worker Issues continue to command the highest share of priority (42%) among the 20 stakeholder-related issues we measure, with four of the five Worker Issues once again among the top six priorities of the public, with Workforce Advancement gaining in importance this year.\u201c \u2013 <\/em>JUST Capital<\/em><\/a><\/p>\n\n\n\n

\"employees<\/figure>\n\n\n\n

For several years now, Americans have been very focused on worker issues and rewarding those companies who treat workers fairly with their business.<\/strong><\/p>\n\n\n\n

Fostering employee wellness through initiatives like flexible work arrangements and mental health support can significantly enhance employee satisfaction and engagement.<\/p>\n\n\n\n

In short, if shareholder value is important to you, then sales and profits are important. If sales and profits are important, then investing in customer engagement is important. And if customer engagement is important (because it leads to increased profits), employee engagement is important (because it leads to profits). And, if employee engagement is important, you\u2019ll want to attract the best, brightest and most talented employees. And, if you want that, you\u2019re going to have to create an environment for them to want to work in.<\/p>\n\n\n\n

People matter. How you treat people matters. And the infrastructure and company culture you create matters if you want to make money.<\/strong><\/p>\n\n\n\n

Flipping the Script: Your Business is the Product, Employees are Your Customers<\/h2>\n\n\n\n

If you\u2019re committed to doing less marketing, less outbound selling and becoming the obvious choice for your customer, you\u2019re going to have to zig while others are zagging. <\/p>\n\n\n\n

So, what if you were to flip the script a little bit. <\/p>\n\n\n\n

What if your business was the product and your employee was the customer?<\/strong> Why would they choose you? Why would they stay with you? Why would they go the extra mile for you?<\/p>\n\n\n\n

This article is about flipping the script on your marketing. It\u2019s about leveraging the logic equation you know is true: happy employees = loyal customers = more money and LESS marketing effort. <\/p>\n\n\n\n

Let\u2019s talk about the power of putting people first and how focusing on employee engagement can be your best-kept marketing secret.<\/p>\n\n\n\n

Wait. I know what you\u2019re thinking. <\/p>\n\n\n\n

How Will Putting My Employees First Make Me Money? <\/h2>\n\n\n\n

Let\u2019s go through the thought process step by step:<\/p>\n\n\n\n

    \n
  1. Customers trade money for products or services that fulfill a desired outcome<\/a><\/li>\n\n\n\n
  2. Customers decide whether to purchase from you based on their experience with you.<\/li>\n\n\n\n
  3. Customer experience is created by employees (they make the product, they deliver the product, they service the product, they take customer complaints, they solve customer problems. You provide the capital, employees provide labor. )<\/li>\n\n\n\n
  4. Disengaged, unhappy employees aren\u2019t engaged in their labor and create poor customer experiences. <\/li>\n\n\n\n
  5. Poor customer experiences means customers will purchase from someone else.<\/li>\n\n\n\n
  6. You have to spend more money on sales and marketing getting new customers.<\/li>\n\n\n\n
  7. Unhappy employees leave. You have higher turnover and pay more for new employees. <\/li>\n<\/ol>\n\n\n\n

    We\u2019ve all had this experience both as customers and business owners. <\/p>\n\n\n\n

    And our friends at the Gallup Organization have measured this experience.  They call it employee engagement and here\u2019s how it works. <\/p>\n\n\n\n

    Employee Engagement = Engaged Customers = Happy Wallets<\/h2>\n\n\n\n

    Gallup began measuring employee engagement in the 1990<\/a>\u2018s with their Q12 survey. They wanted to know what impact having engaged employees had on the bottom line. They came up with 12 questions that reflected how engaged employees were in their work and what impact their answers to these questions had on the overall profitability of the company.<\/p>\n\n\n\n

    \"Q12<\/figure>\n\n\n\n

    The highlighted questions are elements you can manage with a HCM platform like isolved.<\/em><\/p>\n\n\n\n

    Gallup found a 23% <\/a>difference in profitability between top-quartile and bottom-quartile business units in terms of employee engagement, with highly engaged business units achieving a 10% increase in customer ratings and a 23% increase in sales.<\/strong> They found that fostering a positive workplace culture through employee engagement initiatives led to a 23% increase in sales.<\/p>\n\n\n\n

    In short, happy employees equals happy and engaged customers.<\/strong> And this results in 21% more money to your bottom line.<\/p>\n\n\n\n

    Then in the early 2000s Gallup launched their customer engagement metric. As expected, they found that the more engaged your customers, the more profitable the business<\/a>. How much more 23%!  So the same increase in profitability for both employee engagement and customer engagement.<\/p>\n\n\n\n

    But it\u2019s not just Gallup who has these kinds of impressive stats. When isolved did their \u201cVoice of the Workforce\u201d study they found that  90%<\/a> of employees saying the experience they receive at work impacts the experience they deliver to customers \u2013 and 89 percent of HR leaders<\/a> agree with this assessment.<\/p>\n\n\n\n

    So, putting people first, isn\u2019t just good for people, it\u2019s good for customers, and it\u2019s good for your bottom line.<\/strong><\/p>\n\n\n\n

    Embracing an employee first culture not only enhances employee well-being and engagement but also drives profitability by creating a supportive and inclusive environment that attracts top talent and reduces turnover.<\/p>\n\n\n\n

    Creating a People First Company Culture is Easier Than You Think<\/h2>\n\n\n\n

    Now we know that happy and engaged employees generate profits.  But how do employees really feel?  isolved<\/a>, a leading Human Capital Management Software (HCM) has conducted an HR Trend Report for 2024<\/a>, and an HR Leader Champions of Change Report<\/a> where they surveyed both employees and leadership to get a deeper understanding of what employees want and how leadership is delivering on employee experiences. <\/p>\n\n\n\n

    Embrace Your Employee\u2019s Desire for Fulfillment<\/em><\/h3>\n\n\n\n

    Remember that old saying \u201cThey wouldn\u2019t call it work if it were supposed to be fun\u201d? Well, those days are gone.  <\/p>\n\n\n\n

    The isolved 2024 Trend Report <\/a>shows that year over year employees are craving personal fulfillment. <\/p>\n\n\n\n

    \"isolved<\/figure>\n\n\n\n

    They don\u2019t go into detail about what \u201cpersonally fulfilling\u201d means. But, given that we\u2019re talking about building a people first company culture as a marketing strategy, let\u2019s say that personally fulfilling means feeling like their skills and talents are being used and appreciated. <\/p>\n\n\n\n

    This is an exciting trend because it says that employees are begging to be a more integral part of your business.  There is all this pent up employee energy just waiting to be leveraged for the success of your business. <\/strong><\/p>\n\n\n\n

    *Focus on the Basics of Employee Satisfaction*<\/h3>\n\n\n\n

    If your employees can\u2019t meet their basic needs, they aren\u2019t going to meet your customer\u2019s needs.   <\/p>\n\n\n\n

    The isolved 2024 Trends Report shows that 64% of surveyed employees chose wanting a higher salary as a key factor of dissatisfaction with their current job. <\/p>\n\n\n\n

    \"isolved<\/figure>\n\n\n\n

    As business owners, you\u2019re looking to save money wherever you can. So if you\u2019re skimping on salaries, you\u2019re losing money on the customer experience, acquisition, and retention side of the business. <\/p>\n\n\n\n

    Both you and your employees are looking for value, and neither one is getting it. I don\u2019t know when we decided that skimping on employees means less profits. It\u2019s just not true.  <\/p>\n\n\n\n

    Look at  Dan Price.  <\/p>\n\n\n\n

    \"Dan<\/figure>\n\n\n\n

    Price was laughed at in the business and entrepreneur world when he decided to cut his million dollar salary and set the minimum salary to $70,000 in 2015. This happened after a transformative walk in the woods with a friend who was struggling to make ends meet at $50,000. <\/p>\n\n\n\n

    Everyone predicted that he\u2019d fail.  Instead, the opposite happened.  In a recent LinkedIn post he shared that his company has continued to grow.  <\/p>\n\n\n\n

    That\u2019s just one example.  Each year, Gallup gives Exceptional Workplace Awards<\/a>. And the performance differences between companies with the highest employee engagement and the lowest employee engagement are huge. <\/p>\n\n\n\n

    High employee engagement companies had: <\/p>\n\n\n\n

    81% less absenteeism<\/p>\n\n\n\n

    58% fewer safety incidents<\/p>\n\n\n\n

    18% less turnover for high-turnover organizations and 43% less turnover for low-turnover organizations<\/p>\n\n\n\n

    28% less shrinkage (theft)<\/p>\n\n\n\n

    64% fewer safety incidents (accidents)<\/p>\n\n\n\n

    41% fewer quality (defects)<\/p>\n\n\n\n

    10% more customer loyalty\/engagement<\/p>\n\n\n\n

    18% more productivity (sales)<\/p>\n\n\n\n

    23% more profitability<\/p>\n\n\n\n

    I encourage you to take the time to do this math for your own business.  How much money would you save, would you earn if you applied these percentages to your own business?<\/p>\n\n\n\n

    Work With Employee Expectations Instead of Against Them<\/em><\/h3>\n\n\n\n

    isolved also asked leaders and business owners if they felt that employees\u2019 expectations were out of control.  76% of surveyed leaders said \u201cNo\u201d.  This is great news because it says that today\u2019s small business leadership is open to leveraging employees\u2019 talents.<\/p>\n\n\n\n

    Even when you look at leaders\u2019 reasons for saying \u201cNo, employee\u2019s expectations for the experience they have at work are NOT out of control\u201d, you can see that leaders are ready to embrace a people first culture.  Both employees and leaders are on the same page.<\/p>\n\n\n\n

    Recognizing employees’ contributions through formal recognition programs can significantly boost morale and align their expectations with company goals.<\/p>\n\n\n\n

    \"isolved<\/figure>\n\n\n\n

    Measuring Employee Engagement and Job Satisfaction<\/h2>\n\n\n\n

    Measuring employee engagement and job satisfaction is crucial to understanding the effectiveness of an employee-first culture. Key metrics include employee retention rates, productivity, and customer satisfaction. Regular employee feedback and surveys can also provide valuable insights into employee sentiment and areas for improvement. By tracking these metrics, organizations can identify areas where they need to improve and make data-driven decisions to enhance their employee-first culture.<\/p>\n\n\n\n

    The Role of Leadership in Employee Engagement<\/h2>\n\n\n\n

    Leadership plays a critical role in employee engagement and the success of an employee-first culture. Leaders must embody the values and behaviors they want to see in their teams, such as empathy, transparency, and open communication. They must also prioritize employee well-being, provide opportunities for growth and development, and recognize and reward employee contributions. By doing so, leaders can create a positive and inclusive work environment that fosters employee engagement and motivation.<\/p>\n\n\n\n

    Employee Autonomy and Engagement<\/h2>\n\n\n\n

    Employee autonomy is a key driver of engagement and motivation. When employees have the freedom to make decisions and take ownership of their work, they are more likely to be engaged and motivated. An employee-first culture encourages autonomy by providing employees with the resources and support they need to succeed, while also giving them the flexibility to work in a way that suits their individual needs and styles. By empowering employees to take ownership of their work, organizations can create a more engaged and productive workforce.<\/p>\n\n\n\n

    Diversity, Equity, and Inclusion in the Workplace<\/h2>\n\n\n\n

    Diversity, equity, and inclusion (DEI) are essential components of an employee-first culture. A diverse and inclusive workplace fosters creativity, innovation, and collaboration, while also promoting a sense of belonging and respect among employees. Organizations can promote DEI by implementing policies and practices that support diversity, equity, and inclusion, such as training programs, mentorship initiatives, and diversity and inclusion committees. By creating a workplace culture that values and celebrates diversity, organizations can attract and retain top talent and drive business success.<\/p>\n\n\n\n

    How a Small Restaurant Shifted to People First and Won Big<\/h2>\n\n\n\n

    It\u2019s uncommon for a small business to see an employee issue as a marketing issue. But as I\u2019ve mentioned before, if you focus on improving your employees\u2019 experience, you\u2019ll see improvements across your entire business. <\/p>\n\n\n\n

    That\u2019s what happened with JumBurrito<\/a>, a local restaurant in Midland, Texas.  Founded in 1979 by Jose and Diane Cuevas, today they have 6 restaurants and a factory.  <\/p>\n\n\n\n

    From the beginning, Jose and Diane really cared about their employees, but they had high turnover as larger chains were wooing their employees away with higher salaries. Sure, the easy solution would have been to just raise salaries, but JumBurrito\u2019s philosophy was to invest in the whole person.  And that means so much more than salaries. <\/p>\n\n\n\n

    The idea was always to compete with other businesses for the best employees by simply offering the best employee experience. So here are just a few things that they did:<\/p>\n\n\n\n