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Why every manager should make their employees feel valued

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We’ve known for a long time that people need more than money to be motivated. Through Maslow, Herzberg and a wealth of other theorists we’ve seen that employees like to feel valued and when they have a sense of value and recognition they can be an even greater asset to their organisation. Bearing that in mind, let’s take a look at the importance of employee relationships in business.

Relationships make a business

Be it employees, suppliers, investors, customers, communities, or any other stakeholder, the strength of the relationship between them and the business can determine the success or failure of a company. A business doesn’t exist in a vacuum and it’s important that it understands the significance of building these relationships, not just to itself but also to the society it is a part of.

It is also important for management to recognise that some of the company’s most important assets, its staff, are people rather than just workers. Many managers underestimate the power of employee relations, but developing a strong bond with an employee can be more of a motivator than any pay rise or bonus and this psychological contract is something that can come at virtually no cost to an organisation as long as management is willing to commit to it.

What’s in it for me?

The benefits of strong employer-employee relationships are varied and often unquantifiable. However research [1] has shown that these benefits include;        

  • Increased job satisfaction
  • Increased productivity
  • Increased loyalty, lower staff turnover
  • Decreased absenteeism
  • Greater communication

These benefits amount to an increase in revenue, an improved flow of ideas, a lower staff turnaround and ultimately a more effective workforce. It also helps to minimise risk to the company as well as generating a positive buzz both internally and externally, improving the company’s reputation as an employer and thereby attracting more talent.

Relationships can be built on seemingly insignificant foundations, but if these little details are ignored they can have a detrimental impact on staff morale. Research by Azure Consulting [2] found that 48% of managers do not know the names of their employees’ children, and little details like these can mean the difference between having an engaged workforce or a disinterested one. Employees who don’t have this sort of connection to their employer can be as much as 200% less productive and organisations with disengaged workforces tend to experience high rates of employee turnover which leads to mounting recruitment and training costs.

If employees feel that they are valued, that they are trusted and that they are free to talk to their employer about any issues or ideas they have without fear then they can be more comfortable in their place of work. They may be more willing to take on responsibility or stay behind and do extra work and they are more likely to stick with the company long term. The benefits of this strong relationship, both in a business sense and a moral sense, are so significant that they make it is something that every employer should take into account and strive to achieve.




Image from Can Stock Photo

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