Employees as stakeholders

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As strategic marketing consultants we often are asked how to gain buy-in from employees when implementing change in an organization.

We believe organizations should put the greatest emphasis on the employee as the most important stakeholder.

Managers often agree on an intellectual level about creating systems that show (rather than tell) the employees they are the most important stakeholders.

We may ask the following questions.

What happens when your employees do not perceive themselves as stakeholders? How do you motivate non-stakeholder employees? What level of commitment does a non-stakeholder employee have when solving problems that affect your business? Emotional ownership The importance of placing employees as the most important stakeholders is simple.

Building a business is an evolutionary process, and each day your employee moves closer or farther away from becoming an emotional owner of your business.

If your focus is on employee ownership, they have adequate motivation and the proper attitude to keep your company ahead of the competition.

The other question is implementation.

How do you show your employees that they are the most important stakeholders? Think of the difference between renters and homeowners.

Most people would rather live next to an owner because owners have a higher degree of commitment.

If it's true that your employees are indeed the most important stakeholders, they have the responsibility to listen empathetically to customers so they have a real understanding of their needs.

Then, through employee feedback (tip: ensure an effective system is in place), management can better anticipate the needs of the customer.

Why take the time to change the way your employees perceive your organization? During marketing surveys consumers have told us that they prefer to do business with happy employees.

Generally speaking, happy employees tend to treat customers as friends and want to help them have a pleasant buying experience.

Successful companies have reported for many years that employee retention is cost-effective.

Happy workers work more Employees who like their work environment are more inclined to recruit qualified applicants who have excellent attitudes.

Happy employees sell more, stay employed longer, and tell other potential employees who desire to work for your company.

Plus, this philosophy challenges management to implement strategies based on leadership rather than threats.

This philosophy builds healthy relationships within an organization, and these strategies allow for long-term viability and profitability.

How do you create employee stakeholders? The first step is show employees that they matter by including them in decision-making especially if you want to serve your customers better.

If your customer service people consider themselves the complaint department, change their paradigm.

Give them the title "customer relationship manager" and educate them to effectively manage the relationships they have with customers.

Gradually the new paradigm will be ingrained and your employees will be true stakeholders.

The internal marketing message to your employees is this: "You're the most important people in the company because you are closest to the customer.

You own the relationships.

Because of your hard work, you are responsible for building the trust necessary to keep them coming back." Talk and listen To reinforce this concept ask your employees what they think of management decisions.

This concept allows two benefits.

The first is early detection of costly errors.

Second, organizations that rely on employee input often can implement new decisions faster.

Regardless of what happens, this is how you keep employees as stakeholders.

Another strategy is to continuously communicate the benefits of working for your company.

Many employees do not know what benefits health insurance, paid holidays, profit-sharing and the like they have until they leave your company.

Tip: If you are a small company and do not have a HR department you can hire an outside HR person to inform your employees.

If you do have a HR department then have a non-management employee who is a great communicator inform them of the benefits that are provided by your company.

Once your employees take emotional ownership of their jobs they become the most important stakeholders.

Your customers enjoy doing business with happy employees.

Your employees are committed to problem solving because they are advocates of their organization.

There are many baby steps an organization can make to eventually change.

Your employees will enjoy taking ownership in their organization, and as the most important stakeholders they will be committed to the future viability of your company.

Kevin Brunson is president/marketing consultant, at ClientFlex Corp.

in Reno.

He can be reached at (775) 829-254 or (775) 829-2998 (fax).