Source: LOHAS Weekly Newsletter
Published: Wednesday, November 01, 2000

In their efforts to retain good employees, many companies are rethinking how they operate their organizations and developing progressive management styles. Some are offering extra perks, while others are restructuring management to be more egalitarian. In fact, many companies are abandoning traditional hierarchical structures.

“Businesses are customarily organized like an orchestra, with the so-called leader standing up and dictating what each individual member should do,” says Al Whittall, founding partner of Bellwether-Ecliptic Inc., a Calgary-based strategic and organizational performing facilitator. “Progressive companies today are run more like a jazz ensemble. In this situation, a leader sets the tone and creates a central vision. Everyone else in the organization then creates his or her own music that follows this central theme.”

Undoubtedly, such a management style requires rethinking how a manager interacts with staff. David Whyte, an author, poet and workplace consultant based in Lyle, Wash., believes the key to sound management is conversation—strong communication between employees and managers. “Communicating is often an unexplored talent or ability for most of today's managers,” he says.

Problems often stem from the fact that many managers have been promoted beyond their original competency, Whyte notes. “Their work as managers involves understanding human beings and human relations, and many have not faced up to that dynamic,” he says. As newly minted managers, Whyte observes, their prior skills fall short when it comes to leading employees to think, problem solve, develop and deliver. And many are reluctant to actively encourage strong communication, thinking such dialogue is a waste of time. “There is a new truth in the postmodern workplace: Conversation is not about the work; it is
the work. When you have true conversations between managers and employees, then you are engaging people to make things happen,” he says.

Whittall agrees. “Managers often see themselves all alone, in control and driving the forces,” he says. “Yet, organizations are not based on individuals but on groups of people working together. Realizing that the sum is greater than the parts is the first step to creating a healthy working environment,” he says.

Working with businesses throughout Canada and the United States, Whittall and his colleagues help companies understand their environmental cultures—the key to developing
productive management styles. “It's this environment that drives performance,” he says.

One problem, he says, is that managers often don't understand their employees' beliefs, i.e., what they consider to be truly happening at the company. Those attitudes influence employees' behavior, and ultimately, their performance. Whittall works with businesses to uncover these belief systems and help management improve conditions.

Some examples of employee perceptions Whittall has encountered:

“Management is greedy.” Are the bosses flying first class while the rest of the company flies coach? Are there far more perks and benefits for managers than others? Do different rules apply for managers than other staff members? These beliefs—true or not—cause employees to feel exploited. “And employees will then do everything they can to thwart management,” says Whittall. “They feel justified to take extra time off or goof around on the Internet all day. In a sense, they emulate management. Everything is justifiable because, in their minds, they are exploited by management.” The result: a major drop in productivity.

“There is a scarcity of money.” Are budgets tight? Are managers more concerned with saving money than with creating quality work? Are they not communicating the cash situation to employees? In this scenario, employees stop making any decisions at all because the main message they hear from management is to save money. Whittalls'
recommendation: Communicate the problem to employees and allow them to become part of the solution.

“Managers don't trust their employees.” Do the managers micro-manage? Do they question employees' work habits or number of hours worked per day? “It confounds me that someone would hire and then pay a salary to someone they subsequently don't trust and feel they need to control,” says Whittall. “Managers don't hire people that way—they make them that way. The result is a belief system that employees can't be trusted and can't solve problems.”

Whittall says such beliefs become part of a conditioning process that negatively impacts a company. “Management and staff begin to operate from patterns,” he says. Both groups must redefine how they operate in order to change beliefs. Whittall agrees with Whyte that the first step to creating a sound management system is communication. “Management has to be prepared to focus on making the organization more effective and making changes that will generate more positive attitudes,” he says.

That effort continues to be a challenge for Veritable Vegetable Inc., a San Francisco-based organic produce distributor. With eight managers supervising 78 employees, the company focuses on developing strong communication ties among all employees at all levels. “With the tight job market in the Bay Area, we have to offer employees plenty of good reasons to work here,” says co-owner Bu Nygrens. “We find that people want to feel good about their work, and they want to be respected and trained.”

Yet, it's not enough to just put managers through communications courses. Nygrens believes employees at all levels need to learn to communicate effectively. “We don't want employees walking around feeling victimized. We expect them to learn to express their feelings, to learn to assert themselves if they feel they need to be heard,” she says.

Creating a healthy work environment has been a priority for Steve McKee since 1997, when he founded McKee Wallwork Henderson Advertising, an Albuquerque firm with 14 employees and $11 million in annual revenues. According to McKee, the firm is challenged by its need to attract top talent. “Getting good people to move to Albuquerque is our first hurdle, so we have to give lots of good reasons to come here. We solve it by making this a great place to work,” he says.

“By forming a business you are creating a social compact [regarding] expectations and responsibilities,” notes McKee. “My job as a business leader is to foster a culture that attracts and retains a growing number of talented people by developing a compact that is both fair and attractive to them. And in a high-turnover business, that's vital.”

McKee says there are three fundamental aspects to the firm's approach to management: providing fulfilling work, creating a positive environment and increasing rewards.

A steady stream of new and challenging projects is key, he has found. “Our business is growing, yet we have a commitment to excellence, and that raises the bar on how and what we produce,” he says.

McKee says the company has invested in the firm's working environment by providing offices with plenty of natural light and state-of-the-art computer equipment. “We realize that with every new hire there is an additional expense of up to $20,000 for the right computers and software,” he says. “It allows employees to do their best work and demonstrates a degree of respect.” Each employee also receives an $800 ergonomically designed chair. “If people are comfortable, they will work better,” reasons McKee.

The firm pays above-average salaries as compared to other Albuquerque ad agencies. “We're recruiting from other parts of the country, so we pay national rates, with plenty of opportunity to grow,” he says. Salary is key, yet it's the other elements that help keep employees. “We don't want anyone to leave this firm unless we want them to,” says McKee. Indeed, in three years, not one employee has quit. McKee says ad agencies typically suffer an annual turnover of 30 to 50 percent.

At Veritable Vegetable, Nygrens says that her employee retention rates have increased since the company began encouraging open communication between employees and managers. Treating employees with dignity and respect has increased the company's ability to both attract and retain good employees, she believes.

“We recognize that everybody wants to take pride in his or her work,” she says. “Our role as managers is to create the environment so that this can happen.”

What Employees are Really Thinking

Recent research from the Hudson Institute and Walker Information, both based in
Indianapolis, reveals that less than half of all employees (45 percent) feel a strong attachment to their organization or believe that it deserves their loyalty (42 percent).

These findings were gathered in random polls of almost 3,000 men and women working
at companies with at least 50 employees.


Other findings:

24 percent were committed to their employers and planned to stay for two years
or more;

33 percent were not committed and planned to leave before the two-year mark;

39 percent described themselves as “trapped,” meaning they were not committed but were unable to leave for personal reasons.

Respondents said that factors most influencing their sense of commitment were:
management's level of care, concern and fairness, including fair pay; satisfaction with
day-to-day activities; job resources; an employer's level of trust in employees; and
knowing the company has a solid reputation.

Respondents also said employers spend far too little time showing staff they care about their workers' well-being. Communication and appreciation for new ideas and contributions were among other factors needing more attention.