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S.I.M.P.L.E. R.U.L.E. — How Owner Personality Affects Employee Performance (or Why Telling Them What to Do Isn't Enough) (5 of 11)
5/9/2005
by Geri Puleo, G.A. Puleo & Associates
Through my training and consulting practice, I have developed an acronym of action to help small business owners develop an HR strategy that can create dedicated work teams: The S.I.M.P.L.E. R.U.L.E. This month we look at "P" – Personality.
Starting your own business is like giving birth to a child: You want your business to "grow up" to be successful, profitable, and satisfying. Just as you devote endless time, energy, and resources to raising your child to succeed, so, too, will you use these skills to grow your business to maturity.
And just like a child, your business may not be viewed so lovingly by the people around you. Although you can still rear a functional child without the full support of your friends, it is doubtful that your business will "grow up" to be the success that you envision without the support of your employees.
This article will discuss how different aspects of a small business owner's personality can affect the success and profitability of her company; it will also offer some practical strategies to overcome these problems.
The Influence of Freud (or How Your Ego Affects Employee Morale)
We all want our children to grow up to have strong, healthy egos – but we don't want them to become egomaniacs! Owning your own business can cause a wide gamut of emotions to erupt; it can also significantly affect your self-esteem at any given time in your company's growth. If your business is going well, it can be very tempting to become arrogant and "all-knowing" when employees make suggestions regarding how to improve the business even further. Conversely, if your business is suffering financial difficulties, it is very easy to respond in an extreme way, either by lashing out at workers as a form of self-defense or by becoming reticent to making needed, but often difficult, changes.
Controlling Your Ego. A wise old adage notes that "no man [or woman!] is an island." Without your employees, you will never be able to realize the dream of a stable, profitable business. Although the ultimate responsibility for the business will be yours, it is important to remember that your workers will help you turn this dream into reality.
Don't take employees for granted. Don't belittle their ideas. And never forget that it takes a community to build a successful business.
The Influence of Your Mother (or Why It's Better to Share)
Children must learn at an early age that sharing is not only good manners, it is also advantageous in the long run. Too often, the blood, sweat, and tears that you exerted in creating and building your business translate into possessive control over every aspect of your business. As a result, you may hoard power, money, information, and decision-making authority. But failing to share in any of these areas creates an undesirable culture that is characterized by the business owner's micromanagement. Although many business owners started their own companies to get away from the controlling micromanager, they too often fall prey to the same trap. Once again, you cannot build your business without other people. Therefore, it is imperative to share in these areas so that employees are empowered to make decisions that generate external customer satisfaction, internal profit, and company stability.
Letting Go. Sharing with employees generates respect, trust, and loyalty. Don't demand that every decision be sent for your approval. To ensure that employees make decisions that are appropriately aligned with the organization's vision and goals, don't hoard information –good or bad. Information leads to knowledge and knowledge is power. Your goal is to create a powerful organization that can take care of itself; this will be impossible unless you share information. Don't forget to reward and recognize employee contributions to your company’s success by paying them a competitive salary or wage (if you can afford it) or by offering performance-based bonuses and incentives for going the extra mile.
Don't refuse to share power and don’t be greedy. Don't be secretive about information, and never forget that sound decision-making throughout the organization creates a more viable business.
The Influence of Fear (or Why Your Employees May Not Want to Take Over Your Business)
Business owners are often suspicious that others may try to "take away" their business; this is akin to the parent who is terrified that their child may be abducted. In both situations, these fears represent a heightened sense of suspicion – or even paranoia – that often is unwarranted or unrealistic given the circumstances. While it is prudent to take precautions to protect company secrets, constantly challenging employees' honesty and integrity will create a suspicious, unproductive work environment. Additionally, many people are not interested in entrepreneurship, but are more interested in being associated with a successful organization. In most cases, workers are somewhat in awe of the demands placed on small business owners – particularly if they work for a small business. By sharing information, decision-making authority, and monetary rewards, you can create life-long loyal employees rather than competitors who are trying to pirate your customers.
Focusing on the Positive. Many workers want responsibility and authority, but still desire the stability of a paycheck and company-paid benefits. Once again, sharing power, money, information, and decision-making authority will create a win-win situation for both the employee and your organization. Instead of focusing on unfounded fears and suspicions, first seek to understand the situation by asking specific questions. Start as early as the interview process by actively seeking to understand what a job candidate desires from working for your organization. Determine if those needs fit with your organizational structure and HR policies.
If you continue to be suspicious that employees are trying to take over your business, delve more deeply into the cause of your paranoia. Did you experience or witness a situation in which an employee turned against a business owner? If so, what were the specific causes? What role did the owner play in the employee rebellion (e.g., arrogance, unrealistic deadlines, refusing to share money and information)? Always be specific in order to find the cause of your own underlying fears. While you will never be totally without fear, succumbing to a fear that can ultimately undermine the success of your company is counterproductive.
Don't be suspicious (but do be cautious). Don't suspect employees of wrongdoing without an appropriate investigation. And always remember that positive energy will build a business, while fear based in suspicion and paranoia will contribute to the business's demise.
The Influence of Greed (or Why You Can't Take It All)
Some laws were not made to be broken. Just as you want your child to grow up to be a law-abiding citizen, your organization must conform to the various regulations and statutes that protect businesses and their workers. For example, while it is true that you have a relatively greater degree of leeway in running your business if you are not publicly traded, providing benefits to yourself and not other employees may violate The Employee Retirement Income Security Act of 1974. ERISA protects and ensures the distribution of retirement plans. In combination with other legislation and regulations, ERISA requires inherent fairness in the selection and distribution of benefits to members of your organization. Although the details of these laws far surpass the limitations of this article, it is important to remember that many of your actions when compensating employees may be regulated. Always check with a knowledgeable employment attorney or accountant to ensure that you are in compliance.
Sharing the Wealth. Always remember that benefits must be considered to be fair and equitable in the way in which they are offered to different employees in the organization. While some provisions regarding highly compensated employees may enable your organization's executives to receive a richer benefits package than lower-level workers, be cautious regarding the perceived equity of these plans. Fairness in benefits not only helps you to comply with Federal and state regulations, but also may enhance employee loyalty and retention. Additionally, depending on the nature and size of your business, such discrepancies in compensation and benefits may create high levels of employee dissatisfaction which can lead to efforts to unionize your facility.
Don't be greedy. Don't view workers as expenses rather than viable members of your team. And never forget that perceived fairness is important in any employee compensation or benefits matter.
The Influence of Tunnel Vision (or Why Your Employees May Not Be as Dedicated as You)
Parents usually place their child's needs above their own and will do whatever is necessary to ensure their child's safety and happiness. While you may gush over your child's accomplishments, it is unlikely that your friends or co-workers will be as enthusiastic. Likewise, your employees may not share your level of commitment to the organization. While your business may be "your baby," your workers may not be as willing to go above and beyond for something that is "somebody else's baby." Unless you tell employees during the interview and orientation process that you expect a certain level of commitment beyond a 40-hour work week, don't view them as possessing a poor work ethic or a lack of commitment to their employer if they put in their time and leave work at work. Their commitment to the business will never be equal to yours, just as no one's commitment to a child will match a parent's commitment. In other words, while your business may be your life and your destiny, to your workers it may just be a job.
Respecting Your Employees' Life Outside of Work. Unless it is part of the job description, don't penalize workers for only putting in their designated hours; rely on their performance on the job rather than their "face time" at work. Recognize the importance of employees' lives outside of work. Not only is this desirable for their psychological well-being, but it also is an expected, normal part of being human. Few workers' commitment will ever equal the commitment of the business owner, so don’t expect or demand it. Such unrealistic expectations will result in disgruntled workers, lower productivity due to decreased morale, or high costs associated with frequent turnover. If you focus on performance and attach incentives to good performance, employees will know what is expected of them. Once that happens, your company is more likely to achieve its vision.
Don't forget to honor and respect the lives that employees have outside of work. Don't equate "face time" with performance. And never forget that respect of an employee’s total life leads to trust, loyalty, and (ironically) increased dedication and commitment to the growth of your organization.
© 2005 G. A. Puleo
About the Author:
Geri Puleo is the principal and founder of G. A. Puleo & Associates, a training and consulting firm that coaches corporations and individuals to maximize their performance through strategic change. In addition to over 25 years of entrepreneurial experience, Ms. Puleo is certified as a Senior Professional in Human Resources (HR's highest national certification); holds an M.A. in Human Resources Management and an MBA; and is pursuing a Ph.D. in Leadership and Change Management. A founding member and current president of Tri-State SHRM (a local chapter of the Society for Human Resources Management), she is also a voting member of the Pennsylvania State Leadership Council. In addition to her role as an adjunct business professor at the Pennsylvania State University, Ms. Puleo is a frequent speaker at a variety of regional organizations' professional development workshops. Ms. Puleo creates all the company's customized, results-driven workshops and training interventions. She can be reached at geri@gapuleo.com. or 412-722-1020.
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The Mandatory Benefits That All Employers Must Pay
While some small business owners may be unable to provide benefits such as healthcare insurance and paid vacations during the companies early stages of growth, that doesn’t mean that the only payment that you are responsible for providing to employees is a salary or hourly wage. In fact, every business owner who hires employees is required to provide three mandated benefits.
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Through my training and consulting practice, I have developed an acronym of action to help small business owners develop an HR strategy that can create dedicated work teams: The S.I.M.P.L.E. R.U.L.E. This month we look at "E" – Evaluate.
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Through my training and consulting practice, I have developed an acronym of action to help small business owners develop an HR strategy that can create dedicated work teams: The S.I.M.P.L.E. R.U.L.E. This month we look at "L" – Listen.
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Through my training and consulting practice, I have developed an acronym of action to help small business owners develop an HR strategy that can create dedicated work teams: The S.I.M.P.L.E. R.U.L.E. This month we look at "U" – Unique Selling Proposition.
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Through my training and consulting practice, I have developed an acronym of action to help small business owners develop an HR strategy that can create dedicated work teams: The S.I.M.P.L.E. R.U.L.E. This month we look at "R" – Recruitment and Retention.
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Through my training and consulting practice, I have developed an acronym of action to help small business owners develop an HR strategy that can create dedicated work teams: The S.I.M.P.L.E. R.U.L.E. This month we look at "E" – Environment.
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