Can you voice your view, in detail, on the importance of positive employee relations and how to build those relations? Can you present a respectable business case for positive employee relations when conferring with leaders who see employee relations as an undiluted contractual relationship (Employees do X for us; we pay them $X in return-that's the extent of the relationship)?

Having worked in the Human Resources field for over 20 years with different types of service organizations, I have witnessed all kinds of employee relations, from exemplary to less than stellar. My experience has solidified my belief that employees are a strategic asset and not just a commodity. Employees are the most elastic resource that a company has at their disposal to capture the competitive advantage. Building positive employee relations is not in conflict with success and profitability. It is, in fact, an essential ingredient of real success.

Yet many leaders stammer and stutter when challenged to discuss the worth of positive employee relations in business terms. I find this fascinating, because these same leaders are able, with little notice, to present a respectable business case for building positive customer relations. Leaders, instead, begin speaking the language of values ("Treating employees well is the right thing to do," etc.) rather than speaking the language of business-- as though you have to choose one corner or the other.

Here's the good news: You don't need to make a choice. Positive employee relations can be supported from the standpoint of values and it is smart business.

Business Case Scenario 1: The impact on the customer

Let's think like customers: our view of a company is often formed by our first impressions of the employee we initially encounter. The employee's tone of voice, the smile (if they smile!), the professionalism or lack of it, the energy, the employee's whole demeanor-- whether by phone or in person--create our impression. At that moment, the employee is the organization to the customer. What's the link to employee relations? Study after study shows that how employees feel about their employer determines how they treat customers. Sears found this to be true years ago (1978), in an 800-store survey, where they uncovered the fact that when employee attitudes improved by just 5%, customer satisfaction jumped 1.3%. Not surprisingly, Sears saw revenue increases as well. Studies over the last 25 years confirm the Sears study. Employees who believe they are valued and well-treated create positive customer relations and bring revenue increases. Employees who feel their employer does not care about them and does not treat them well create negative customer relations--and that means lost business and decreased revenue. It's just that simple.

In the end, all business operations can be reduced to three words: people, product, and profits. People come first.
- Lee Iacocca

The manager administers, the leader innovates. The manager maintains, the leader develops. The manager relies on systems, the leader relies on people. The manager counts on controls the leader counts on trust. The manager does things right, the leader does the right things.
- Fortune Magazine

A gifted leader is one who is capable of touching your heart.
- J.S. Potofsky

The final test of a leader is that he leaves behind in other men the conviction and the will to carry on.
- Walter Lippman

The greatest administrators do not achieve production through constraints and limitations. They provide opportunities.
- Lao-tzu

A message from Lynne Key and Tom Dambly

In our homes and in most organizations, the holidays mean a deluge of food, fun, and great memories as we give attention to creating special moments for others. In the midst of this feasting, my kids and their guests in our home were surprised--and frankly, confused--when they realized one young man was squirreling away sandwiches in his jacket pockets. After all, we live in a community of plenty; the friend had money in his wallet and designer clothes on his back, why would he "steal" sandwiches? The answer is simple: There's no nutritional value in money or designer labels, and the only system in his life that regularly provides square meals (the school system) was closed for the holiday.

In our experiences with organizations, Tom and I have worked with many leaders who are surprised and confused when they learn that employees crave more than a paycheck and that consistent attention to employee relations is an essential part of every effective organization. "We pay our people good salaries, provide health insurance and a 401k," the leaders explain. "Employees should be satisfied with that."

Seems logical, yet we know from research and our experience that when individuals feel valued, competent, and trusted, the commitment to the organization rises and organizational effectiveness skyrockets. A little investigation into the organization and we invariably find both formal and informal systems that allow the leaders, but not the employees, to feel valued, competent, and trusted. With their pantry full, the leaders are often unaware of the need-much like my kids were unaware of the needs of their guest with the empty pantry. An essential need is invisible to them, because they never feel its absence. These leaders see no reason to proactively build systems that ensure their employees feel valued, competent, and trusted throughout the year, not just through the holiday season.

We hope this season brings you joy, warm moments, and brilliant memories that will last a lifetime. More than that, we hope you look for and find ways to bolster the "systems" that will kindle good things for you and the others in your life throughout the year.