Leadership/Innovation

How Companies Treat their Employees Can Have a Far-Reaching Impact

The way a company shapes its workforce can influence how customers perceive the company, its inherent brand, and more. In this piece appearing in HBR.com, Denise Lee Yohn describes how an organization’s talent practices can have far-reaching consequences.

Why is it Important?

These days, a company’s organizational practices are under extra scrutiny from the media, customers, investors, and other stakeholders. As such, everyone is privy to a given company’s wages and benefits, sexual harassment policies, and its involvement in political issues. More significantly, thanks to the social media phenomenon, people can say exactly what they think of these subjects, and tom-tom it to the world. Now, when customers have tens of thousands or even millions of followers on social media, this message spreads far and wide, and companies are therefore bound to address the concerns raised. Therefore, companies who target or screen out prospective candidates based on gender or other demographics must be wary of the message they send out to customers in doing so.

Customers Discuss Employee Policy

Weber Shandwick, the PR firm, discovered that when customers talk about companies, how they treat their employees and news about their involvement in scandals or wrongdoings is amongst the top five things discussed. Furthermore, Edelman reports that treating employees well can help build trust with the public quite unlike any other exercise.

Homogenous Workforce Problems

Insular workplace culture is one of the first problems companies will come across if they recruit employees from the same demographic. In addition, Mckinsey reports that a company that lacks diversity doesn’t perform as well on financial returns. On the other hand, a diverse workforce can boost innovation and growth, and help their companies stay ahead of the competition. Besides, an organization which pays too much attention towards recruiting employees of a certain demographic may overlook the fact that these employees may not fit in with the company’s values, or that they may not be high performers.

Now with so much at stake, companies should, therefore, be well aware that their talent practices can also shape their reputation, performance, and culture.

Click on the following link to view the original article: https://hbr.org/2018/09/reminder-customers-care-how-you-treat-your-employees

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