Have you ever wondered why some businesses thrive while many more fail to grow?
The economic climate, online competition, rising costs, and a more competitive environment are factors. You will often hear it used as an explanation. Some business owners will fall back on the ‘business is tough’ mindset…
Many factors that impede business growth are valid. But they can also be used to mask the harsh truths that organisations would prefer not to face.
I observed one key factor that stood above all others when explaining business success or failure throughout my business career. That factor? People.
Bad results are often the result of ‘people challenges’.
Employing the wrong people, not retaining your best performers, or having disengaged, unmotivated staff will negatively affect a business and its growth prospects.
Sadly, the State of the Global Workplace Gallup Report 2017 found Australia, along with blah New Zealand, to be one of the worst-performing countries in the world regarding employee engagement and satisfaction.
The report found only 14% of employees in Australia and New Zealand are engaged in their jobs, while 15% are actively disengaged. In those two countries alone, the cost of disengaged employees is estimated at AU$70 billion each year.
I have always been a passionate advocate of a people-first philosophy. Now more than ever, businesses are dealing with disruptive change. Improved processes and new technologies – while certainly important – can only go so far. People remain the most irreplaceable business resource.
Hiring the right people – and keeping them – is a game-changer, and my experience has shown me that investing in your leaders is the best way to turn a business around from a growth and development standpoint.
An effective leader creates an environment where employees can learn, challenge themselves and feel motivated to contribute. This environment will deliver results not only for workplace culture but also for the bottom line. For example, research has shown employees who feel valued and engaged are 24% more likely to increase sales.
An improvement in your leadership will have a positive ripple effect on everyone in your business. Outstanding results come from people working in a positive environment while being inspired and empowered by their leaders.
Grow your leaders, grow your business.