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As we start the new year with a significant reduction in business taxes, I want you to think about the best way to invest those savings. Responsible companies think of their employees and want to do something for them. Bonuses are good, pay raises even better but much like the saying, “Give a man a fish, and you feed him for a day; teach a man to fish, and you feed him for a lifetime.” the benefits of bonuses and pay raises can be short-lived.
In this article, I want to discuss how to apply those savings to create loyalty through exceptional leadership. The kind of leadership I’m talking about engenders the kind of loyalty in a person that they would willingly follow you into a situation that could cost them their life. I realize in business this is rarely the case, but if you study the leadership techniques of organizations that ask that of the men and women they lead you can learn these exceptional leadership skills. The organizations I’m referring to are the U. S. military.
There is no organization in this country that has more experience in training leaders than the U.S. Army. These leaders, along with those of the other branches of service, are responsible for helping this country become the dominant world power, but how do they do it? Business managers are happy if people just show up on time and do an acceptable job. How do you engender the kind of loyalty in a person that they would willingly follow you into a situation that could cost them their life? That's the kind of leadership the military must produce, so how do they do it?
In this article, I cannot go into the details of leadership, which can take years to perfect, but I can provide you with the foundational elements essential to the success of any organization.
In military leadership, you learn your first duty is to accomplish your unit’s mission or in business terms the goals of the organization. The senior management of most business organizations stop here and fail to understand the second duty of a leader…the welfare of those under you. Unfortunately, these managers view employees as a commodity; you buy them with an hourly wage or salary, and they're yours to do with as you please. What happens to employees after they leave the workplace is of no concern to this type of manager. The military is keenly aware loyalty is a two-way street. You cannot expect a person to give their all when those responsible for their well-being view them as an expendable commodity.
What do we mean when we say the welfare of those under you? It’s meeting the basic needs of every human being (for a better understanding of how motivation and a person's needs being met go hand-in-hand see Herzberg’s Theory of Motivation and Maslow’s Hierarchy of Needs). This starts with paying a livable wage. You cannot expect a person to be dependable and do a good job if they're worried about how they're going to pay the rent, how they’re going to get to work when they don’t have dependable transportation, or how they’re going to pay the medical bills of the sick child.
Usually, at this point in our leadership class, someone will comment that their company does pay a livable wage, but it's not their responsibility to watch over employees to make sure they spend their money wisely. I tell that person. actually, it is if you want the kind of loyalty to the organization I've been talking about. You must reduce the stress caused by the day to day pressures of life so your employees can focus on their job and realize their success is tied directly to the company’s success.
Quality medical care is paramount. Everyone in the military is well aware of the medical care they receive is second to none. Care enough about your people to provide the best medical coverage you can afford.
Safe, comfortable housing and dependable transportation are essential to the well being of your employees, especially your hourly workers. I am not suggesting you buy your employees a house and car, but you can negotiate with dealerships to provide the lowest price possible. In the company I was privileged to be president of for over 22 years, our employees would find a vehicle they wanted and negotiate what they were told was the best price. We then sent in our vice president, who was a pit bull when it came to negotiating, who would get the price reduced another 2 – 4 thousand dollars. We did the same thing when an employee wanted to buy a house by helping them save for the down payment and then negotiate the lowest purchase price and interest rate.
One thing I discovered early in my career was hourly employees when faced with a situation they did not know how to handle would adopt the attitude that if they ignore it long enough, it will go away. Of course, when it comes to legal matters this is always disastrous, but if they know they can talk with an attorney at no cost to understand what is about to happen and then make arrangements for legal representation at their expense they are much more likely to deal with the problem.
There are numerous free public services available to your employees. Services like financial management, parenting classes, English as a second language, mental health counseling, and educational loan assistance are offered in most communities. Take the time to compile a list of these services in your area and make that information easily accessible to your employees.
So what can you do to promote the kind of loyalty I speak of? For large companies, I would encourage you to create a Director of Employee Services. This person would be responsible for the creation and administration of the employee loyalty program. The position can be under you HR Director, but the employee services director should have direct access to the CEO.
For smaller companies, like the one I was president of, the duties can be split among your senior managers. If your company is reluctant to adopt an employee loyalty program, then do what you can yourself. Maintain a binder with community services, so you are familiar with where to send someone when they are experiencing life’s little road bumps.
Through the wise use of your resources, you can create an environment of trust with your employees. When employees know the company cares about their wellbeing, you will engender the kind of trust necessary for extraordinary growth and profitability.
To learn more about the leadership skills referred to in this article see Leadership Essentials.
January 10, 2018
By Mark Fleming, Executive Director, Academy of Business Training