Is it really idealistic to believe that managers should care about their employees? Is it unrealistic to believe that when you show people they matter, they perform better? Do you think that offering employees better pay, better benefits and good management is too high a cost to pay for company success?
While reading the 21 Irrefutable Laws of Leadership by John Maxwell, I came across an interesting story about a leader who believes that if “you compensate employees well, you get good employees, good productivity and employee loyalty”. The company he leads has a formula for success that includes:
- Offering a limited amount of products for sale
- Depend on high volume sales for profitability
- Keeping costs low
- No advertising
But according to Maxwell, this CEO has something else that separates him from his competitors who use similar formulas and that is the way he treats his employees.
Did you know that:
- Employees at Costco are paid 42% more than employees at the leading competitor
- Employees at Costco pay just a small portion of the average for health insurance
- The CEO, Sinegal, has an open door policy, answers his own phone, has a makeshift office and goes to the lobby to meet his appointments
- The CEO goes out of his way to show his employees he care about them
- The CEO wears a name tag
- The CEO is on a first name basis with everyone
- The CEO demonstrates that he believes in his people
- Costco has the lowest employee turnover rate in the retail business
In a previous article, we discussed that employees can make or break your business. Costco’s CEO Jim Sinegal obviously believes this. According to John Maxwell, Sinegal lives the Law of Addition, one of the 21 Irrefutable Laws of Leadership. Sinegal does this by “being more focused on adding value to people by serving them than on serving himself or making himself richer with an exorbitant salary”.
John Maxwell states that leaders add value by serving others – it’s the Law of Addition. Are you serving your employees? Are you treating your employees like they matter?
Tip of the day: Treat employees well, offer good salaries and benefits to attract good talent which will lead to employee productivity, loyalty and low employee turnover.
It’s really not idealistic or unrealistic.