[Employee Relations] Make More Money, Have More Fun

If you’ve ever doubted that the phrases “make more money” and “have more fun” belong in the same sentence, here’s proof.

New research shows that companies where people love to work, shop and invest have outperformed their competition by a 3:1 ratio over the last 10 years. Those companies — detailed in a book titled “Firms of Endearment” — were also three times as profitable for their owners than the companies profiled in the book “Good to Great,” where companies were selected primarily on their profitability.

And obviously, the people who run those well-loved companies are having a lot more fun. They’re part of a winning team rather than spending all their time being the “go-to” person for any problem that their employees, customers and partners can’t solve on their own.

While the research focuses on larger, publicly held companies, the simple concepts work even more quickly for business owners who don’t have to answer to multiple layers of managers or stockholders. They work if you’re making money, but would like to make more of it — or if you would really rather have more free time to do the other things you love most.

All you need to do is create the kind of business environment where employees like to come to work. If you have a company where people are glad to be working, know they are a valuable part of a winning team and will share in the profits, you’ll have a business with happy employees — which then translates into happy customers who tell their friends how wonderful their pest control company has been.

YOUR TOP JOB. As a business owner, you’re responsible for creating your business’s personality. You can make it a fun and profitable place — or you can make it a place where people simply come to work for a paycheck leaving you to deal with all the hassles.

It takes three easy steps to start, and then an ongoing commitment to building a business where people like to work.

Start with a mission statement. It can be as simple as “Build a customer-oriented pest control company that provides outstanding service to residents of (your town).”

This mission statement focuses on who you are, what you do and usually contains three elements: purpose, products and service, and values.
In the pest control industry, purpose and products are generally similar. The values are what make the difference between the guy who sprays for bugs and the company that protects its customers’ families from objectionable and unsafe pests in their homes and yards.

FINANCIAL REWARDS. Financial rewards also play a critical role in team building. The research detailed in “Firms of Endearment” clearly shows that companies who share their wealth reap the rewards. For instance, Wegman’s Food Market pays its employees an average of 25 percent more than other grocery stores, but ends up with double the margins and 50 percent more sales per square foot than industry benchmarks.

Ongoing success also requires that employees are empowered to make quick decisions based on your vision and mission statements. If they can make decisions, they don’t come to you with problems — and you can spend more time working on your business not in it.

It’s also critical to note that creating a positive work environment is going to become even more important as your current workforce ages and you have to attract new, younger employees. Stereotypes aren’t always fair but across the board, today’s younger employees aren’t as likely to stay with a job just for the money. They want to be part of a winning team that has a purpose that goes beyond the bottom line. Creating an environment that keeps them happy and productive is a win-win for everyone.

Author’s note: For more information, see Firms of Endearment, Raj Sisodia, Jag Sheth, David B. Wolfe, 2007; and Good to Great, Jim Collins, 2005.

The author is a self-proclaimed “serial entrepreneur” who has built and sold five businesses during the last 30 years. His latest project is a partnership with his wife, Pam Jordan Wolf, who has more than 30 years experience in the pest control industry. They’ve created www.netopportunity.biz, a Web site for pest control operators who want to sell, buy or grow their business.

Looking For More Ways to Run a Successful Business?

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