In an economy where big business is making cuts to enhance profits, it truly seems like companies are ignoring experts who tell them to prioritize and prize their people.
But does the choice really come down to people or profits? Experts seem to agree you can have both.
Profits Over People?
Why do companies insist on cutting benefits, terminating workers, perpetuating unequal pay, and prioritizing hiring contractors for freelance work versus hiring employees?
Because they can, and workers have very little power to push back. After all, each person, no matter their role, is ultimately replaceable.
As jazzy as the “gig economy” and “side hustles” sound, it’s not a system built for the benefit of freelancers. Companies have countless benefits for choosing freelancers over employees, and the top benefit is cost savings.
Even the biggest companies, like Amazon and Uber, are catching heat for, essentially, treating their people like dirt. And, they’re doing it in the interest of continuing to make a ton of cash.
Does that mean the company’s bottom line can only be improved by treating people like cogs in a machine? As it turns out, maybe not.
Happy People = Bigger Profit
It’s not hard to find support for treating people well as a means of increasing profits. After all, happy people do better work, and better work means better business. It seems simple!
When people are motivated to contribute, it makes sense that they’ll put their best ideas forward for the benefit of everyone, not just the company’s profit margin.
Motivation isn’t just a touchy-feely thing that benefits employees. In fact, improving motivation can increase gross profits by 47%, according to a study in the Harvard Business Review. – The Hustle
Plus, the frontline workers in any company will have the most context about how the business operates.
Maybe they can’t single-handedly boost profits by 30 percent, but their ideas may help the big boss achieve those metrics.
While there’s nothing wrong with enjoying the thrill that comes along with running a company that is performing at its very best and generating lots of sales, as a leader, it’s important not to forget exactly who is making those numbers go through the roof–your employees. – Peter Economy, the Leadership Guy
Of course, there’s also the fact that people who are dedicated to a company with values they can relate to will do everything in their power to support said company’s goals.
If those values aren’t above-board, or they’re not communicated clearly, people’s investment in the organization can erode.
Trust is major — building it with your team is paramount to success, both short- and long-term.
That might mean actively asking for feedback, taking worker complaints seriously (especially if it involves harassment or discrimination), and generally being open to hearing others’ thoughts.
There’s plenty of hard evidence that shows that happy employees lead directly to better performance and higher profits – Meghan M. Biro, Forbes Contributor
Keeping people happy doesn’t necessarily mean paying more (though that’s a fundamental element of building a scalable business), but it does mean being open to the idea.
After all, owners and stakeholders want the best for their company — so they should want the best for the people doing the heavy lifting.
Can Workers Make Businesses Do Better?
The truth is, many businesses will continue to prioritize profit margins over their people, especially as the economy struggles and corporations want more work for low expenditure.
At the same time, this has been going on for years already. Perhaps decades or more; the people doing the labor don’t have much of a say in the corporate world.
It is time for our political conversation to be centered on those who work the hardest, not those who can afford to speak the loudest. – People Over Profits
Can one person change that, even in one company? Doubtful.
Creating big change through small actions — treating people well no matter their role, sharing ideas even if others take credit, and advocating for team input on big issues — may seem daunting, and it can be risky.
As a worker, you might find that your only course of action is to walk away when a company’s morals seem to be circling the drain and its people aren’t being heard.
Worse, you might be punished for speaking up or even attempting to, even though employment law typically frowns upon that.
Bottom line? If you’re privileged enough (read: can afford) to be able to leave a toxic work environment, do what feels right to you.
Whether it’s a “good job” or not, no one should have to grind and have the stress and anxiety of being treated as subhuman or being expected to treat others as such.
Even if you’re leaving behind an amazing team of people or just your work BFF, sometimes goodbyes are best. After all, you never know what new opportunities will be on the horizon.