Caring for your Employees

Employee performance and satisfaction are of primary concern to an employer. The ethical treatment of staff, and their knowledge that they are working for an ethical company, have become increasingly important factors in the recruitment and retention of employees.

Understanding responsibilities

The employer—employee relationship has changed radically over the years. Before the 20th century, the employee served the employer and had few rights; but today, in an age of skills-shortages, the employee often behaves more like a consumer than a wage slave, selecting their employer on the basis of many criteria beyond just the salary they offer. Recent research has revealed that as many as one in six people rate an organization’s attitude toward corporate social responsibility as the first or second most important factor in choosing an employer. More widely, individuals are increasingly identified with their job, so their choice of employer reflects their own values and lifestyle. To attract and retain employees, companies are having to rethink their offer, building good ethics and corporate citizenship into their brand. Failure to deliver on the declared ethical stance will result in increased labor turnover as employees realize that the initial offer was shallow.

Nurturing your staff

Shifting demographics mean that your organization’s ethical reputation is set to become ever more important in the job market. As a good employer, you should take steps to recognize the aspirations and expectations of your team, and ensure that they are addressed. Simple measures include recycling more, planting trees to offset carbon output, and publishing your ethical policies. Consider offering volunteer programs and charitable donations as part of the employment package, alongside benefits such as flexible working and a clear career structure. Actively manage your reputation: most graduates gain their perception of a company’s ethical standards through the media and are sceptical about what organizations state in their own published materials.

Another approach is to set up employee stock ownership plans that give staff a real financial stake in the company. A stock-ownership plan provides a clear expression of how much the firm values its employees, and organizations with such programs generally have lower turnover rates, higher employee satisfaction, and higher productivity levels. Moreover, companies with a high degree of employee ownership consistently outperform their conventionally owned rivals in pure financial terms.

Are you an ethical employer?

• Are all team members treated with respect?

• Do you use objective measures to determine employees’ status and reward?

• Are you scrupulously honest with your employees about benefits and job security?

• Do you know what motivates your employees?

• Do your staff have a chance to express their opinions?