Respectful treatment of employees is crucial for business success
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I recently heard of a leader within an organization who was treating his assistant much like a slave.
This leader not only subjected the assistant to verbal mistreatment but also regularly brought his dog to the office, expecting the assistant to clean up after the animal when it made a mess inside the building.
Working in a non-unionized environment, the employee had to comply or risk losing favour with the boss and possibly his position.
Fortunately, it’s uncommon to encounter business owners who believe they’re doing employees a significant favour simply by giving them a job. However, the notion that owning or managing a business entitles one to misuse that power and treat employees unjustly is a grave mistake that can have serious consequences.
In fact, we owe our employees a great deal, including:
A safe environment
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While safety is a top priority in many industries, creating a safe workplace goes beyond physical security. It means fostering a culture where employees feel psychologically safe as well. Leaders must work to reduce toxic behaviours such as bullying and manipulation. They must also protect employees from harmful influences and ensure that everyone feels empowered to speak up when they experience injustice or unsafe conditions.
Fair pay
Many regions have implemented minimum wage laws to guarantee a baseline level of compensation for employees. However, business owners should also consider paying a living wage – the income necessary to meet basic needs within a specific area. Paying a living wage ensures that employees can maintain a decent standard of living without needing to work multiple jobs, ultimately leading to greater satisfaction, retention, and productivity.
One issue with the current minimum wage system is that it doesn’t account for the fact that many low-wage workers are teenagers who often don’t have the same financial responsibilities as adults. Consequently, when minimum wages are increased, it can disproportionately affect small business owners, who must absorb the costs. While younger workers with fewer financial burdens may benefit, owners face reduced margins and profitability.
A more equitable solution might be to set minimum wages based on age or financial responsibility. This would allow younger workers, often supported by their parents, to be paid differently from older workers with greater financial obligations. Such a system would enable businesses to manage labour costs while still paying adult workers a wage that supports a decent standard of living.
Many business owners I know want to pay their full-time employees more but are constrained by narrow profit margins. It’s not uncommon for some small business owners to take home less than their highest-paid employees, underscoring the financial pressure they face. A more flexible wage structure could offer a fairer system for both employers and employees, ensuring that wage increases benefit those who need them most without overburdening small businesses.
Leadership
A business owner recently shared a story about an employee who was wearing inadequate shoes. The owner took off his own shoes and gave them to the employee – a powerful example of leadership. True leadership involves more than grand gestures, however; it’s about showing consistent care for your team.
Beyond acts of kindness, employees need leaders who can provide a clear vision of the company’s future. When employees understand the organization’s broader goals, they can see how their efforts contribute to overall success, fostering a sense of purpose and alignment.
It’s also crucial that leaders define roles and responsibilities clearly so employees know what’s expected of them each day. This clarity reduces confusion, enhances productivity, and ensures everyone is working toward the same goals. Employees perform better when they understand their tasks and how they fit into the bigger picture.
Accountability and fairness
Leaders must apply the same standards of accountability to everyone, regardless of rank. When leaders model fairness and accountability, it creates an atmosphere of trust within the workplace. Employees are more motivated and committed when they see that leadership holds itself to the same rules as everyone else.
Consideration of their future
A good employer must think about their employees’ long-term well-being. This includes creating strategies that ensure financial stability in retirement for those who dedicate years of service to the business. Prioritizing their employees’ futures by implementing pension plans, retirement savings programs, or profit-sharing initiatives offers employees peace of mind and demonstrates a deep commitment to their well-being.
Leadership also involves having tough conversations when employees are unhappy or no longer aligned with the organization. Great employers don’t avoid these discussions. Instead, they engage with employees, helping them find better opportunities when necessary. This creates a culture of openness and mutual respect, making transitions smoother for both employees and the company.
Mutual respect
Employees are the backbone of any organization, and without their contributions, fulfilling the company’s mission and vision would be impossible. However, employees must also understand the complexities and stresses of leadership. Running a business involves managing numerous challenges and making tough decisions that aren’t always visible to the average worker.
While laws set minimum standards for employee-employer relationships, great leaders surpass these legal obligations. They understand that treating employees with respect, fairness, and empathy fosters an environment where people feel valued and are motivated to contribute positively. By cultivating such a culture, leaders not only advance the organization but also enable employees to thrive and contribute to society.
In essence, leadership is not just about managing the present – it’s about investing in the future, ensuring that both the company and its employees grow together with mutual respect and shared purpose.
David Fuller is a Commercial and Business Realtor with a strong reputation as an award-winning business coach and author. He has extensive experience helping businesses grow and succeed, providing guidance on various aspects of business management, strategy, and development. His work as a business coach and author has earned him recognition in the industry, making him a respected figure in both real estate and business coaching.
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