The Importance of the business environment

Entrepreneurship is no joke.  It's akin to being a single parent with all the weight of the world on your shoulders.  Hiring employees certainly helps.  But we have to face it, our responsibility is not their responsibility.  In the hierarchy of business you should think along the lines of family structure. You - the Owner/President/CEO - are the Parent.  Your employee is your Child. Why use this strategy?  Because it works. 

Companies who do not relinquish the "I am your Master - You are my Slave" concept are doomed to fail.  Yes this is a tough economy, and people will take on any job including from companies using this condescending structure.   But in the short run, employees will leave.  Not to mention that companies employing this tactic usually have a high employee turn-over rate. The savvy investor will look at this as a huge financial risk. 

Companies who are ingrained in the old corporate whipping structure will not retain good employees nor create employee loyalty. Their management creates a fear-based environment. Every day an employee endures this hell denigrates their attitude towards their employer.  This in turn will slow the pace of the work, primarily because of the fear of possibly doing their work wrong, and eliminates the idea of job security in their mindset. 

What does this do for The Company?  It slows progress.  Uses up corporate dollars foolishly by training employees who will not stay long, and retards business operations because every time a trained employee leaves who has not been able to fulfill their duties to their full potential, a new employee who has to be trained must take their place.

Savvy investors should look carefully at a company's employee turnover rate.  If a company has a high employee turnover rate, the company's bottom line is affected negatively.  Corporate dollars are being mis-managed.  Not to mention that there usually are corporate egos to blame. A high attrition rate is directly related to a monetary leak in the company.  This makes The Company a bad investment.

There is no benefit to The Company.

So, to the Mindful Business Owner/President/CEO, it is imperative that you relate to your employees as you would to your family.  Obviously not as intimately, but as considering of their value.  Companies that have taken on the "family structure" and placed value on their employees flourish.  Potential employees clamour to get an interview.  Current employees value their position and are loyal.  Employees view this type of company as "looking after their needs".  A few such companies are Johnson & Johnson, and PaeTec Communications.  Johnson & Johnson is an established public entity in the corporate world. PaeTec Communications is a privately held telecommunications provider.  Both hold their employees and the family structure in high regard.  Both flourish and provide outstanding quality to their customers.  Both value their employees.  See the pattern?

So to the egotistical, hard nosed, demanding, rigid management of the corporate whipping structure - change is inevitable or your certain corporate demise is looming in the very near future.