In the blog from last week we stated that high performing companies that work with their employee relations have higher growth and are more profitable than other companies.
To know that is important in itself, but it won’t make the employee relations better. To transform you will need to break down employee relations to smaller issues that you can actually work with – and turn them in to concrete action plans to focus on your organization’s most important issues. To help you find a direction we have looked at what high performing companies do particularly well.
The difference between high performing companies and other companies are greatest on these 10 issues:
- They implement new decisions faster
- They are better at cooperating across units to get things done
- The employees feel that they get more and better information from management
- They are better at breaking down strategic goals to individual goals
- The employees have a higher trust in the management teams ability to lead the company well
- They have more rewarding performance reviews
- More employees are proud to be part of the company and feel that they offer their customers the best products on the market
- Employees implement their own ideas in their teams to a greater extent
- More employees know about company’s values
- They are better at follow-up and evaluating performance
Most of the issues are interrelated to each other – it’s likely that employees who are satisfied with the information from the management also think that the company is run better. And employees who have individual goals are likely to have a clearer picture of where the company is going. As a consequence, they will hopefully be more able to take their own decisions and implement new ideas. Also, with clear goal it is easier to follow-up and have productive performance reviews.
The issues that are related to pride in what the company delivers and how well the employees know about the company values are often also related to management. If management walk the talk and succeed in conveying the company’s greater purpose in a way that the employees get behind these are all things that drive engagement and motivation.
How does your company perform on these 10 issues? What does your employees say? We hope that the list along with your employee’s current view of your company will help you to prioritize the issues that are most important for you to work to give an effect on your key performance indicators.
*The analysis is based on 195 companies (high performing companies and other companies) and the data is from 2012-2015. High performing companies are defined as the 10 percent of companies in our data base with the highest result on our indices.
This is the second blog in a series analysing how leadership and employee engagement affects, and are linked to, profitability and what you need to focus on to achieve your goals.
You can find part 1 here: How to make Human Relations your highest priority. Stay tuned for the continuation!