While attending a Great Place to Work Institute annual conference an organizational consultant told the story of a client who prominently displayed posters throughout their offices with the message, “Our valued employees are always treated with trust and respect.”   Yet the consultant noticed employees underwent exhaustive and intrusive security searches when entering and exiting the offices each day.  It was obvious the employer did not really trust their people.  The consultant observed the employees were quite uncomfortable with the invasive nature of the security process.

Considered a highly unusual practice for a civilian organization with very little security concerns, the consultant questioned the leaders about the conflicting message of “trust and respect” while employees were subjected to daily body searches. The organization stopped the security searches.

Avoid Conflicting Messages

In this case, the leaders were oblivious to the conflicting message of building trust and the ongoing practice of their security measures. That’s why business leaders should carefully consider the environment they want to create for their employees.  A well planned and executed people strategy will help you avoid these big, hairy contradictory messages that create barriers between employees and management.

Since corporate culture flows down from the top, determine in advance what message you want your employees to receive through your leadership team’s actions.

People Strategy is Mission Critical

When preparing your business plan, seriously consider the people strategy component of your enterprise.  People strategy is as important as your marketing strategy or finance statements. Many CEO’s will boast in their annual reports, “Our people are our most important asset” because that is what a CEO is expected to say in print or on camera.  But in reality do most CEO’s develop a Great Workplace strategy where employees are treated as whole persons and where leaders are measured on their soft skills? Based on the vast numbers of unhappy, unfulfilled, disengaged and burnt out American workers across this great nation, my educated guess is a resounding “no!”

A business owner should seriously consider their written and unwritten people strategies and make room for this subject in their business plan, whether you have ten or ten-thousand employees.  Even solo-practitioners rely on other people, including business associates, partners, affiliates, vendors, and other professionals, to accomplish their goals.  A well-developed people strategy is critically important to any businesses long-term viability.

Most Successful People Like People

First of all, it helps if you like people. To some leaders, overseeing people is like dealing with the IRS: they avoid them at all cost.  I cannot count the times leaders have told me they hate dealing with people issues.  However, many leaders allow the people component of their business to be formulated by chance.  It is difficult to succeed in business if you don’t like people.  It is not a good idea to outsource your people function to uncaring, unattached outsiders.  Even if you outsource merely the transaction components of human resource management, a leader cannot outsource the employee relations component without disastrous consequences.

If business leaders are not involved in corporate life, the company’s culture becomes a process of evolution, mutation, and happenstance in an uncaring environment.  These are great ingredients for stirring up a prison riot, but not such a great way to develop a great working environment.

Sometimes the temptation is to ignore people problems altogether and hope the problems magically disappear.  However, poor decision-making, or lack of decision-making, can lead to a toxic work environment and a multitude of people issues.

Positive People Practice Questions

When developing or evaluating your business plan, ask and answer the following Positive People Practice (also known as P3) questions when creating a People Strategy section in your business plan:

• Company Culture - Every company has one and no two are alike.  What type company culture do you want for your enterprise?  The culture will typically mirror the personality of a strong leader or CEO. It is good to establish in writing the foundation of the company’s personality.
• Flexibility - How flexible will your company be with employees?  Will you automatically say “no” to reasonable requests or seriously consider and evaluate employee requests for work/life flexibility?  Flexible employers are known to be more productive and profitable.
• Results Only – Are you prepared to base employee performance on results rather than the outdated practices of brown-nosing and face time?
• How Results Happen – How results happen are as important as the results. Will employees and leaders be accountable for their behavior in getting work accomplished?  Make sure results at any cost is not condoned by your leadership.
• Telecommuting – Will employees have the flexibility to work away from the office as long as they get their work done on time and with the quality expected? Today’s technological advances have made telecommuting a practical solution for a number of positions.
• Recruiting by Cultural Fit – Will you carefully screen each new hire to determine if they will live and work according to your company culture? Potential new leaders should also be subjected to a culture fit analysis since this is where many problems crop up.
• Dress Code - How are employees expected to dress for work? Business, business casual, casual, beach attire? Make sure leaders dress like your employees too.  Opportunity seeking leaders will be tempted to dress up in a dress down environment to gain a psychological advantage over other employees.
• Corporate Values - What are the values and guiding principles of your organization?  These guidelines communicate a great message to job applicants and help existing employees and leaders make decisions when faced with difficult circumstances?
• Code of Conduct - How are employees and leaders expected to act during the work week?  What is considered acceptable or unacceptable behavior? Is business ethics taken seriously?
• Jerk-Free Workplace – Will you consider instituting an anti-bullying and jerk-free workplace policy where workplace terrorists are terminated after one official warning? Unfortunately the incivility of our society is creeping into the workplace and business leaders need to stop hiring jerks at work.

Seriously consider these people strategy issues when developing your business plan and your chances of outlasting, outperforming and outmaneuvering the competition will increase exponentially.

This past weekend a rough looking middle-aged woman deliberately threw a rather large plastic cup full of soda out of her car window onto a retail store parking lot as we walked by. Realizing the unkempt woman littered on purpose, my wife said to her, “you dropped your cup.”  In a very hateful tone the litterbug shot back, “come over here and pick it up!”  A trash can was simply four or five steps away from the rude woman’s car door but she refused to do the right thing, trashed our environment with her uncleanliness and her unsightly rudeness.

What has happened to basic courtesy? When did it become okay to simply throw your trash out the car window while driving down the highway. When did it become okay to yell, scream and curse at other drivers on the road?  This same lack of courtesy has crept into the workplace as well.

Why do some managers find it acceptable to yell or curse at employees?  Why do some organizations allow fear and intimidation to be used as a management tool? Even non-profit groups, churches and Christian organizations have not been immune to the disease of mean.

One time I observed a blustery executive respond to a subordinate who simply asked a good question, “I am not telling you again because I didn’t stutter the first time,” the impatient executive stated to the employee who was visibly shaken by the rude response.  How creative and innovative do you think that supervisor’s employees were?

A majority of professionals will display trust, dignity and respect among subordinates, peers and leaders.  However, there are those difficult ones who create toxic work environments due to their refusal to treat people nicely.  They litter the workplace with their toxic behavioral trash. Their behavior and demeanor smells and makes people sick.

The Power of Nice is a great book written by advertising executives Linda Kaplan Thaler and Robin Koval showing “how to conquer the business world with kindness.”  I highly recommend the brief 119 page book to all my clients, leaders and future leaders. We have all heard the adage “nice guys finish last.” Actually, this is far from the truth.  Sure, mean managers get significant press time.  But according to the authors, “The Power of Nice shows that ‘nice’ companies have lower employee turnover, lower recruitment costs, and higher productivity.  Nice people live longer, are healthier, and make more money.”

The authors Thaler and Koval go on to say, “companies and people with a reputation for cooperation and fair play forge the kind of relationships that lead to bigger and better opportunities, both in business and life.  But nice doesn’t mean acting wimpy. In fact, nice may be the toughest four-letter word you’ll ever experience,” say the authors.

Building great workplaces is not complicated work. Treating employees with dignity, trust and respect is not rocket science. Being nice, respectful and caring is powerful. These qualities are not the tools of a wimpy leader.  These are the qualities of a focused and successful leader who does not need to ruin lives while climbing the corporate ladder or building a successful company.

Will you join The People Group in making a commitment to create a trusting, respectful and caring work environment where you work?  It makes sense.  It’s the right thing to do.  And you will be financially better for it.

Edward R. Murrow, the famous American broadcaster depicted in the movie Good Night, and Good Luck once said, “The obscure we eventually see, the completely obvious takes longer.”  In your quest to building a successful company, do not assume the creation of a great work environment is complicated.  In fact, the steps are quite simple, if not completely obvious from a people practice perspective.

Company Culture Flows from the Top

In the people practice profession, there is the tendency to over-complicate work culture and how it impacts the bottom line.  The basic principles of a great work environment are quite straightforward, and rest entirely on the leadership’s shoulders.

One of the most important business strategy questions leaders can ask themselves is, “How do I create a great work environment that attracts, motivates and retains the best and brightest talent?”  You might be surprised the answer is not any of these; above market compensation, best in class benefits, top trends in office space design or technological superiority.  The answer is summed up in one, very important, highly-relational, powerful word: trust.

Definition of a Great Workplace

The Great Place to Work Institute, after twenty years of thorough research on the top high-performance companies in America, formulated their definition of a great workplace as a place where employees “trust the people they work for, have pride in what they do, and enjoy the people they work with.”

A leadership team who can be trusted by employees is well on its way from average performance to a great workplace where magic happens.  The good news is employees are not necessarily looking for expensive perks, like coffee bars, gyms, restaurants, game rooms, hair salons and spas, daycare, on-site doctors and nurses, media centers, theaters, dry cleaning, or concierge services.  Although these benefits are very nice options, they do not guarantee a great work environment.

When leaders sincerely care for their people and build an environment of trust, employees will believe in the company mission and develop respect for their co-workers.  Trust is like the secret ingredient found in Coke.  Without it, the recipe will not work.  Many have tried to copy great workplaces without trust and failed.  Without trust, the environment will not click, no matter how grandiose the company’s compensation, benefit and work/life programs.  It is amazing how creating an environment of trust, the missing ingredient in many average performing companies, will hasten the transformation of your company into a great workplace with the potential to outperform your competition many times over.

The Seven Leadership Principles

How does a leader create a great workplace through the simple ingredient of trust?  Robert Levering, founder of the Great Place to Work Institute, who has many years of experience researching successful companies, states there are seven principles leaders must follow to build and maintain trust in their organization:

#1 – Leaders share information. The leaders of great work environments are willing to share information with their entire workforce.  They are not afraid to provide employees of all levels important updates about the company’s status, whether financial, non-financial, positive or negative.  Withholding important company information drives a wedge between employees and leaders, creates misunderstandings, fear and distrust among employees who spend most of their waking hours at your place of business.  Since employees are investing their lives with you, isn’t it likely they deserve to know where the company has been, where it needs to go, how it’s performing and how their efforts make a difference?  Open up the internal information highway and you are well on your way to greatness.

#2 – Leaders are accessible. Leaders in great workplaces do not hide in their execu-caves.  Effective leaders get out of their offices and walk around and mingle with employees.  These same leaders allow employees to voice concerns without fear of reprisals or losing their jobs.  Many of the 100 Best Companies hold regular lunches with employees where leadership shares information, shows sincere concern for employees and listens to their concerns.  More importantly, leaders follow-up on employee concerns and improve the work environment with each interaction.

#3 – Leaders are willing to answer the hard questions. Trust is built when employees see leaders who are not afraid to stand up and field the hard questions.  Employees do not expect leaders to have all the answers, but develop strong trusting relationships with leaders who honestly state they do not have an answer but will respond at a later date.

#4 – Leaders emphasize two-way communication. Leaders who actively listen to employees concerns and engage in two-way communications earn the trust of employees.  Most management teams are good at sending communications or orders down the pipelines, but not necessarily comfortable with receiving feedback from their workforce.  Great workplaces have open, two-way channels of communication.

#5 – Leaders always deliver on their promises. Miss this one and you’re done.  Making a promise and not following through is like going thermal nuclear on your workplace; people get burned.  Employees want to know if leaders will deliver on their promises.  This includes the small things as well as the big things.  Treat your employees like your best customers and you should perform very well in this area.

#6 – Leaders show recognition and appreciation. Deep down employees crave recognition for a job well done.  Receiving recognition and appreciation is one of the biggest unmet needs employees have in today’s society.  Go ahead and make a big deal about employee and team accomplishments.  Brag on your employees in front of other employees  Then sit back and watch a special, positive, energizing, company culture develop in front of your eyes.

#7 – Leaders demonstrate sincere, personal concern. According to the most recent Towers Perrin Global Workforce Study, the number one driver leading to employee engagement is determined by whether senior management is sincerely interested in an employee’s well-being.  You can’t fake sincerity.  It shows in your attitude and other non-verbal clues.  If the leaders are not sincerely concerned for their employees as people, your best talent will likely move to a place where they are better appreciated.

Live by these leadership principles and your organization will soon be inundated with resumes from the best and brightest talent in your industry wanting to work for your organization.

* * * * * * *

This article was originally written for The Business Owner Journal and will appear in the November/December 2008 issue.

CEO’s find the truth hard to handle at times.  Especially regarding employee relations issues, and their resulting effects on morale, quality and productivity.  For example, the CEO may have a hard time believing one of their top performers is a certifiable asshole who is damaging the company’s morale and causing a deterioration of trust in leadership.

The good news is there is a five step program for ridding your company of corporate assholes who have burrowed themselves inside your organization.

Step #1 – Admit assholes are bad for business. Recognize that assholes are bad for the organization. Yes, take that truth syrum and walk over from the dark side to the light.  Believe it or not, there are some CEO’s who think a few assholes scattered throughout the organization actually increase productivity. If this is the case, why not give those assholes some chains and whips to help their cause and instill greater fear.  If fear really works, why not increase the fear for greater effect? Nonsense!  You know it and I know it; assholes must be terminated.

Step #2 – Understand assholes are expert kiss-ups. Understand that assholes are masters at managing up, kissing up and brownnosing, all while causing terror down the corporate ladder.  While you are feeling good about your asshole, he is instilling fear in your organization. As the CEO, the asshole who is your direct report typically makes you feel good when you are around them.  It feels good to have your back end massaged by these clever manipulators.  They are experts at massaging your backside in order to protect theirs.

Step #3 – Adopt, model and promote your company’s code of conduct. I recommend your company also adopt an Anti-Bullying and No-Jerk policy.  Why?  The Workplace Bullying Institute and Zogby research indicate that 37% of American workers have been bullied at work.  That is almost 4 out of 10 employees.  Bullying is four times more prevalent than illegal harassment, yet most companies overlook it.  Because this has become such a prevalent workplace problem, a number of respectable companies have adoped No Jerk Hiring Policies:

“No Jerk Policy” Hall of Fame Companies

Barclays Capital | SPM Communications | Lloyd Gosselink Attorneys at Law

IDEO | Sterling Foundation Management | Gold’s Gym | van Aartrijk Group

Robert W. Baird | The Wine Buyer | Mozilla | Washington Mutual | SuccessFactors

Arup | Goldcorp | Hamilton Canada

Step #4 – Require thorough investigations and no cover-ups. Make sure human resources completely investigates claims of workplace bullying by corporate assholes.  The typical response will be for HR to conspire with or feel pressure from the asshole manager and eventually assist in the firing of the targeted employee or employees.  This allows the evidence to be terminated and walk out the front door.  In other words, assholes like to eliminate their dirty laundry.  Require HR to document the behavior, obtain witness accounts and submit a full written report to the CEO office.  Identify patterns of behavior and provide support to human resources when they recommend bullies and assholes undergo counseling.  Finally, terminate jerks if they don’t straighten up, regardless of their position in the company.

Step #5 – Communicate to stakeholders your company is a Jerk Free Zone. Communicate to employees, applicants and stakeholders your company is a Jerk Free Zone.  Don’t even permit customers to treat your employees terribly.  If you want to create a high-performance team environment, protect your employees.  Sure, develop lofty goals for your team members and create high performance expectations.  Driving out fear in the workplace will almost ensure your organization will be successful. Do this and success will follow you wherever you go.

Most American workers want to put in a good day’s work. There is a deep desire created in all people to be productive, creative, innovative, inventive, and to leave this world in a better condition. However, our American corporate culture is losing the battle for the hearts and minds of employees and has fallen far from the mark. Rather than working to win the hearts and minds of employees, corporations are driving a stake in the soul of the American worker. After a two-year feasibility study, the non-profit organization Winning Workplaces identified in their Case Prospectus the cruel realities we face in our current work environment.

• The American workplace, a source of our nation’s strength, is also at the root of considerable burdens for many individuals, families and communities.
• Trust and respect in the workplace is breaking down, with less than 40% of employees believing or trusting their senior managers.
• Employees are feeling less control over their jobs.
• Opportunities are shrinking in the workplace.
• Employees are often forced to choose between work and family due to company demands.
• Workers are becoming more detached from their employers due to globalization and outsourcing.
• Work is dominating the life of the American worker.
• Employees spend, on average, 46 hours a week on their job, not counting time online at home or linked to a BlackBerry away from the office at night or on weekends.
• When jobs are satisfying and challenging, it invigorates employees in other areas of their lives.
• When the workplace deflates, frustrates and demeans people, workers are robbed of their energy and desires needed to optimize performance as spouses, parents and citizens.
• Up to 66% of employees say they regularly experience high levels of stress on the job, a significant and growing public health concern leading to drug abuse, mental health problems, accidents and absenteeism.

There is no better time than today to help companies create great workplaces. Our citizens need great workplaces to be fully productive. Our children need their parents to work in physically and mentally healthy work environments to prevent toxic workplace residue from coming home. Our society needs great workplaces to reap the rewards of successful employees and organizations. Non-profit organizations benefit from the increased volunteerism that happens as a result of great work environments. The health of our nation depends on the creation of great workplaces where employees are treated respectfully. And business owners need great workplaces to survive global competition and enjoy long-term financial success. Organizations where the employees have identified their workplace as a great place to work are far superior economically and socially. The Great Place to Work Institute has shown in its research it pays to provide a great workplace. Win the hearts and minds of your employees and you will outperform your competition and increase the return to your shareholders.

Your chest is pounding. Anxious feelings resurface as painful office altercations replay in your mind causing a sick feeling in your stomach. Your shoulders and neck begin to tighten and ache. Your mind ruminates over last week’s noxious encounter with a bully manager and his evil recruits. Although Sunday is supposed to be a restful day to invigorate your mental and physical wellbeing, you find yourself mentally clocked-in at the office, clocked-out at home, and woefully dreading the next day to begin. Sound familiar?

Unfortunately, this is a common Sunday afternoon mental exercise American workers relive at the beginning of many work weeks. Sadly, the recurrence of fear and trepidation on Sunday is well-founded. Researchers discovered a few years ago the deadliest time of the week is Monday morning as workers return to their job. There are twenty percent more incidents of heart attacks on Mondays due to the stress of returning to toxic company cultures with abusive managers.

Although brave soldiers have sacrificed and the United States have spent billions to stop violence against defenseless countries and our world allies, our nation has not gained control of the increasing psychological violence inside the borders of the American workplace. Civility, trust and respect seem to be losing ground to schoolyard-type bullies who work in the corner office. Competition for promotions, raises and bonuses can bring out the worst in people. If results at any cost are rewarded, company managers and employees may resort to bullying behavior to get things done; an unethical, inhumane, but perfectly legal management technique in America.

Although it is illegal to discriminate against women or minorities based on sex or race, it is perfectly legal in the United States for an unreformed-schoolyard-bully-turned-executive to yell, scream, berate, curse, belittle, exclude, or be downright cruel to employees. According to Dr. Gary Namie, Workplace Bullying Institute, “Bullying is mostly legal. Employers can ignore it with little risk. However, it is four times more prevalent than illegal status-based discrimination.”

Some companies encourage and reward bullying tactics that force employees to cower and passively accept their role to do what you are told. Typically, an employee who complains of such bullying behavior to human resources will eventually be terminated in a matter of days, weeks or months. Although human resources should review, investigate and resolve each employee relations issue in an objective manner, human resource professionals and friends of the bully tend to turn against the target of the bullying behavior.

When company leadership adopts, models and promotes positive people practices and initiates the process of creating a great place to work, the toxic levels inside the organization will begin to fall and employee energy and engagement will begin to rise.