People and Profit are not Mutually Exclusive
When companies invest in their people, by setting clear goals, providing feedback and coaching, they increase their profits.
How? First, let’s define what this process is called. It’s called “organizational development” and it’s different from human resources. Human resources is concerned with recruitment, termination, and government regulations. The purpose behind organizational development is to make positive changes to the workplace and help employees perform better so they can make the organization more successful.
More specifically, organizational development seeks to:
Maximize employees’ contribution to the organization
Align employees with the organization’s culture and values
Make positive changes to the organization’s strategy, systems, and processes
We’ve all worked in a toxic environment, had a bad boss, or watched coworkers slack off. This is exactly what happens when you don’t have an effective organization.
The cost of an ineffective organization is astonishing:
$37B is wasted by U.S. businesses every year due to inefficiencies
To replace an employee, it costs 6-9 months of their annual salary
A disengaged employee costs the company $3,400 for every $10,000 they earn
How organizational development makes a business more profitable:
Increased Engagement
When the organization communicates its vision and goals to employees, those employees are able to understand how they contribute, align their own goals to the organization, and feel like they are part of the company’s success. This motivates them, which makes them more productive.
Employees are 21% more productive
Employee turnover decreases by 87%
Improved accountability
Feedback that goes back and forth between employees and leaders promotes accountability and delivers results.
Innovation
When systems and processes are improved, the entire culture of the workplace shifts to accept continuous change and leads to more innovation.
As a result of increased productivity and lower turnover, an organization can experience an increase in profit margin of 22%!
These benefits don’t come at a cost to the organization either. It’s completely free to communicate with employees and coach them. Therefore, organizational development is a no-brainer.
If you’re wondering whether your culture could be improved, you take this FREE ASSESSMENT.
The People and Profit System™ was created to help your business develop into a high-performing organization as fast as possible. Schedule a call to learn more!