Everyone knows the saying “Nice guys finish last.” The presumption is that nice guys let others go first and end up with the leftovers. It typically is true in relationships, friendships and is presumed to be true in wealth advisory or investments. But what studies released last week in financial circles show is that nice guys may not always finish last financially. Not only do they not finish last, but they might even finish with more wealth. So, is caring the newest of all the startup requirements?
Business Need To Care
The consulting firm Great Place to Work created a list of the Best Small and Medium Workplaces for Fortune magazine, and what they found was that the businesses that earned the most on the average were the ones who cared the most about their work community.
The scale they used to measure “caring” was identified through surveys. Traditional business surveys tend to focus on things such as innovation, competency of leadership, and business strategy as traits for success. This survey found that caring and a nurturing environment may actually be the key to small business wealth.
Invest In Your Employees
The shift may not be a surprise to employment analysts. With employment stagnation and a lack of loyalty in the workplace, it would make sense that if you show employees loyalty and caring, they are more likely to work hard, offer employee suggestions and care more about the company that employs them. The importance of the psychology within a workplace may have been overlooked in the past, but in a new and emerging workforce mentality, caring may be what it is all about.
Why you should have personal investments in your employees and care for their welfare is because they are more apt to invest in their workplace if they are comfortable. Creating caring and community within any organization breeds loyalty, satisfaction, and a willingness to work as a team to get ahead.
If an employee doesn’t feel like they have a stake in the game or feels disconnected from their position and the organization, it makes sense that they aren’t going to give it their all or invest their heart in creating the success of the company.
The adage “the enemy of my enemy is my friend” tells even the financial world that there is no greater uniting force than an adversary. When you create cohesion in your organization, they work better as a united front.
Plan For The Future
You need to make a plan for your business and its employees. Having a financial plan for your business is essential to consider yourself a financially savvy business owner. However, having a financial plan regarding employees puts you above and beyond financially savvy. It it is almost certainly something that your competition, whether direct vs indirect competition, will not be doing. This means you will outperform the competition. If you want to demonstrate your financial savvy, make sure to plan for the business’s financial future.
Establish Cultural Fit
The survey took into account over 52000 participants’ surveys seeking the biggest drivers of performance. A 58-question survey examined what employees were most concerned with and what motivated them most. At the top of the survey were measures like people caring for one another and management hiring employees that “fit” into the organizational culture. Statements like these correlated with the highest revenues for both small and medium sized companies.
When employees felt trust for their employer, the company was more likely to enjoy higher wealth and revenue. It was notable that employees ranked management hiring people who “fit” so highly. It appears that birds of a feather do like to flock together. That means that companies that hire the same “type” of personalities do better than those who look for diversity. It was very important to employees that management takes on new employees who were one of the team and not just out for themselves or solely get ahead.
The key factor of the survey was employee trust. If an employee feels that their position is safe and that management conducts their decisions with loyalty and thoughtfulness, the employees felt more work satisfaction and were likely to go the extra mile to help the organization not just survive, but thrive.
When you give people, the comfort of knowing that they have job security like Visium Asset Management, they won’t stay to help only out for fear of losing their position — they will stay because they care about their work and the organization. That creates more productivity and more investment all the way around.
What employers can learn from this information is that being nice and caring, pays off. Instead of ruling with an iron fist or using incentives that pit employees against one another, the best way to motivate employees within an organization, whether an investment management company or a tech startup, may be by nurturing them. Creating a “we all thrive or we die” culture may be more important than fostering competition.
Image from http://blog.carreonphotography.com/2013/08/financial-advisor-portrait-assignment.html