A good leader was once defined as someone who was autocratic and authoritative, and a successful business was one that made a lot of money regardless of whether the staff was motivated and happy. The workplace has changed and values have evolved. This is due to changes in leadership, like the rise of women in boardrooms, or external factors, such as pandemic, where employers around the world discovered that flexible working had no negative impact on morale or profit. The workplace has changed and many organisations now understand that having a motivated, engaged team is essential for success.
Anthony Sutton is the founder of Cream HR. A company that provides solutions for businesses. He has put together a list that will help all business owners keep their employees motivated, engaged and happy.
He says: “The average company spends 15 to 30% of their annual revenue on salaries, and some businesses even more. The cost of staffing can be as high as 70%. Many employers do not see this as an investment. The focus is not on how to keep good staff and what makes them happy. It’s no wonder that the recent changes to the workplace have led to workers looking for more balanced work. The most important investment for any business is its people. More companies should realize that people are the most important investment, regardless of their sector.
“As you would with any other business cost, the more money and time you invest in your company, the higher the return that you expect.”
Anthony lists five ways that business leaders can keep their employees motivated and engaged.
Listen to your people and engage them
Engaging your employees in a meaningful way goes beyond the annual survey or token gestures. Listening is the first step. Understanding what motivates and drives your employees will unlock greater levels of productivity, satisfaction and innovation. You can create work that is tailored to the individual’s motivations, values and strengths by identifying their motivations. It leads to increased productivity, lower turnover and a higher morale. According to the Chartered Institute of Personnel and Development, highly engaged employees are 59% more likely to seek a new job in the next year. Your people are also often the best source of innovation. Those closest to your day-to-day activities have valuable insight into how you can improve processes, reduce costs or enhance customer experience. Ignoring these resources is more than a missed chance – it’s also a strategic error.
Include your HR team in strategic planning
Human Resources should not be a mere administrative function, but rather the foundation of your business strategy. By involving your HR team at the earliest stages of planning, you can align your workforce with your business objectives. This collaborative approach helps to anticipate future talent requirements, build leadership pipelines and design roles that are adaptable to market changes. A carefully crafted people strategy will identify the skills, behaviors and culture that your business needs to be successful. A 2024 report from the Chartered Management Institute shows that 72% of UK leaders agree that a people focused strategy has a direct effect on their company’s performance. Only 39% of business leaders said that HR was a part of the decision-making process. It is clear that if your business wants to grow sustainably, you need to include HR in the decision-making from the beginning, and not just as an afterthought.
Show genuine concern for your employees – this is a business imperative
Genuinely caring for your employees is not a sign that you are “soft”. It’s a way to invest in your most important asset, your staff. It has been shown that companies that prioritize employee well-being consistently outperform their competitors. A study by Deloitte UK shows that companies see a return on investment of PS5 per PS1 spent in staff wellness initiatives. It is clear that caring means creating an environment where flexibility, work-life harmony, and psychological safety are the norm. It’s all about creating a workplace with trust, transparency and an inclusive culture. Leaders that show concern build loyalty which reduces staff sickness, and increases discretionary efforts. Caring is not a cost, it’s a competitive advantage.
Investing in training and development
Unlocking your team’s full potential requires that you understand their training needs. Onboarding and continual learning programmes set the tone of what your company values, and give employees the confidence to succeed right from the beginning. It shouldn’t end there. Development should continue. Early identification of skills gaps and the mapping of career paths allows employees to grow within your company rather than leave it. The Learning & Work Institute in the UK reported that employers’ investment in training had declined by 28% for each employee since 2005. This is despite the fact that 91% of employers said they have difficulty finding workers with the appropriate skills. This imbalance must be addressed to future-proof your business and ensure it can adapt to a rapidly-changing economy.
Create a culture of high performance based on four principles: Clarity and Strengths, Praise, and Concern
This culture is based on four pillars: This kind of culture is based on four pillars:
- Clarity – Meaning expectations are clearly defined, and aligned to business goals.
- Strengths – Individuals are encouraged to focus on areas in which they excel.
- Praise Recognizes and reinforces positive contributions
- Concern – This is a proactive approach to addressing challenges and well-being.
This framework promotes accountability, motivation and a feeling of belonging. Performance improves when employees feel supported and stretched in the correct ways. This kind of culture is reported to be more effective in retaining employees, fostering leadership, and improving customer satisfaction.
Anthony continued, “The more you invest in your employees, they will perform better. Fully investing in people creates more engaged teams that do better work and lead to happier customers. This is known as the “virtuous cycle”. Multi-skilled staff supporting an agile workforce will also help your organization be better equipped for the future. Invest in your employees and reap the benefits .”
Visit CreamHR.com to learn more about CreamHR and how it can help your business.
The first time this post appeared was on Human Resources News.
