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Measuring success with employees this Labor Day

08:54 AM PDT on Tuesday, August 29, 2006

By Terry Corbell

Worker satisfaction might be an impossible dream for some employers this Labor Day. That’s because a study of workers’ attitudes shows they believe managers are largely at fault when they don’t maximize performance. And, that’s often the case, isn’t it?

In fact, many workers say companies are failing to boost their bottom line because of a workforce unhappy with management. The majority is calling for their bosses to invest in workers.

The study, entitled, "Working in America: What Employees Want," researched the opinions of 1,051 full-time employed adults. It was conducted by Harris Interactive and funded by Kronos, a human resources consulting firm. Both companies serve clients worldwide.

Is your business suffering from poor morale? If so, this Labor Day might be an opportune time to take steps to increase your revenue by listening to your employees.

Among the conclusions from the study by Harris Interactive and Kronos: Seventy-four percent are job hunting. Forty-one percent admit they’re job hunting while at work.

Conversely, of the employees who say they’re satisfied with their jobs, 82 percent say they say they perform at higher levels, as a result of their satisfaction with employers.

It’s worth noting that Deloitte Consulting, according to a published report, determined that the 56 public companies included in Fortune’s list of “Best Companies to work for” have had about 78 percent in higher stock performance than the S&P 500.

So what do workers want? They want what is probably impossible for cash-poor firms.

The top three worker preferences:

  • More competitive wages
  • 100 percent paid health-care
  • 100 percent company-funded 401(k) plans

They also want “compressed” work weeks, flexible schedules and bonuses. The dissatisfied employees admit they’re not motivated to perform well, but 78 percent say they would work harder if their wishes are met.

But satisfied workers cite these reasons: “I like my boss; I am treated with respect; and my employer pays me well.”

Clearly, many workers feel exploited. Sixty-one percent say their companies are not sharing the benefits gained from a stronger economy. That’s a 4 percent increase since the last study.

Sixty-seven percent state their workloads have increased during the last half year. Fifty percent say they haven’t received a pay raise during that period.

The study prompts these Kronos conclusions:

  • With an improved economy and looming labor shortage, employee retention will continue to be problematic for employers.
  • Companies will have to do a better job of treating workers as assets in order to grow.

Conclusions about this study: True, management is culpable for low profit. Though financially able, many profit-searching companies are unlikely to respond to these worker preferences. Other businesses may not have the cash flow to act, but effective worker-recognition programs would alleviate such profit concerns and low morale.

In other Labor Day matters, the union representing 30,000 of Washington’s public workers, the Washington Federation of State Employees, has tentatively agreed on a new two-year contract with Gov. Christine Gregoire's administration. It would take effect July 1, 2007.

The state workers’ largest union and the administration did not divulge contract details.

A two-year health care agreement was also reached with all unions. The average employee share of the premiums would be 12 percent. For unspent funds for health care, each unionized state worker will get a $756 rebate for health care, under the current contract.

Negotiations are still under way for workers not represented by the federation.

If ratified, the Legislature would fund the state worker packages.

However, it would seem logical that taxpayers are entitled to transparency in the federation agreement and to be informed of the financial impact of the negotiations.

The Office of Financial Management (OFM) issued a summary of the current average salary and benefits for state employees, according to the Evergreen Freedom Foundation, which provided a link to the media: www.effwa.org/files/misc/2006FTE.xls.

OFM has also published a list on its Web site of individual state salaries.

Northwest readers have questions from previous Biz Coach columns

A reader responds to the column, The true reason behind employee time-wasting:

Q: Lately I've attended several business meetings where I have already met the other attendees, but my bosses have not. When introducing the vice-president or president of our company, (I am a manager), should I use his title, "John Doe, President of ABC Company", or simply say "John Doe, also with ABC Company"? 

A: That’s an excellent question. It’s refreshing that your company employs such a conscientious person. It’s proper protocol to introduce guests to your boss first, such as: “This is John Doe, president of ABC Company.” Then, introduce your boss to the other person.

From the column entitled, If fast sales are needed, Marcom professionals need to go back to the future , a radio professional asked for more anecdotes from my relationship with a legendary broadcaster:

Q: Just noticed in something on the NCWN web page that you mentioned Del Sharbutt. I was always a fan of his...what a voice. Just wondered if you could share some of the conversations you had with him. I always listened to him when he was doing the Mutual hourly newscasts when I was a kid growing up in Moses Lake, Washington. I was a confirmed radio geek. Still am.

A: Del’s suggestions in the mid-1970s were timeless and his principles were easy-to-understand. Google his name and you’ll find pages upon pages of references about him. I’ll be forever grateful that he took the time to advise me.

Del’s lessons included:

His advice on dealing with a bully boss: “Kid, every experience is a learning experience.”

He had a sense of traditional style in business attire: “When wearing a light-colored jacket or suit, wear a dark, contrasting tie.”

When I ran an all-news radio station in a competitive market, we were thrilled to attract 90 percent of the men, but I was worried about being ineffective in attracting young women. Del suggested: “Take your microphone to each elementary school and interview kids on what they want for Christmas.” He didn’t have to tell me to hand each youngster a piece of paper explaining when the recording would be aired with a suggestion to give it to Mommy. (The station garnered a 14-share of the ratings – a feat unheard of these days.)

When I questioned former President Gerald Ford’s leadership following Watergate and his pardon of President Nixon, Del countered: “He’s a true gentleman.”

He also gave me tips to advance my career and introduced me to Johnny Grant, the well-known broadcaster and “Honorary Mayor of Hollywood” – the person you see in TV news reports handling all the famous entertainers when they get their star on Hollywood Boulevard’s “Walk of Fame.” Grant provided me valuable counsel about perseverance.

From the Coach’s Corner, here’s a tip for women seeking a job with higher pay:

A published report says women can earn higher pay, if they work for firms headed by women, according to a study by the University of North Carolina and the University of California.

The average woman still only earns 81 percent compared to their male counterparts. But the study concludes that women’s pay increases to 91 percent of men and that men earn slightly less where women manage the businesses.

Hopefully, the practice of unequal pay for equal work will end some day.


Terry Corbell has been a Seattle-area management consultant since 1992. His business-coaching column appears each Tuesday. Click here for more information on his background. E-mail your questions and comments to terry@corbellmanagement.com, or call him at (253) 952-3840. You can also visit his Web site at: www.corbellmanagement.com.

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