Tag Archives: employee retention

Trust Issues

August 3, 2016 by

The data is overwhelming. Employee retention depends on one question: Do team members trust their team leader?

In a virtually full-employment market like Omaha, trust is obviously an issue worth discussing.

Trust doesn’t just determine success in recruiting and retention. Current research proves trust determines success with all popular business goals including engagement, culture, high-performance, etc.

Trust is the key to successful relationships between team leaders and team members. In truly high performance, fully-engaged business cultures, trust is also essential to relationships with all constituents: customers, community, investors, government, the media, etc.

Stephen Covey says it best, “trust is the highest form of human motivation It brings out the very best in people.”

No company can claim 100 percent trust in all relationships with all audiences. No. The highest performing companies with the most engaged employees (and communities, investors, etc.) are laser-focused on building, maintaining, and deepening trust.

As difficult as it may seem to define trust, let alone intentionally create it, there are mountains of research defining the conditions necessary for trust to be developed in business which can be distilled to two key principles:

1. Professional Competence

Professionally competent leaders aren’t necessarily the most knowledgeable or experienced individuals on their teams. However, team members are confident that these leaders know enough to consistently ask good questions, make good decisions, provide good direction, and recognize and address good (and bad) performance in real time.

2. Personal Character.

From a psychological perspective, personal character allows team members to trust that their leader will not allow them to be harmed, especially when they are vulnerable. Trusted leaders don’t allow gossip, and never engage in it. They “have the backs” of their teammates in all situations.

There are three specific components of personal character that team members must observe in their leaders before they can trust them:

a) Honesty

Honesty goes well beyond telling the truth. It means the intent to be transparent and “real” at all times—to communicate clearly and completely. Trusted leaders don’t hoard information. They are authentic, genuine, and are willing to have difficult conversations.                                   

b) Consistency

Consistent adherence to personal values allows team members to predict their leaders reactions and behaviors. Predictability is essential to trust. Fairness in decision-making is another key aspect of consistency. Trusted leaders don’t play favorites. Team members can count on them to put principles before personalities.

c) Concern

A concerned leader is not easily swayed by an emotional appeal or grants every wish to be popular. On the contrary, concerned leaders are willing to not only want what’s best for team members, but also hold them accountable to perform at the highest possible standard.

Scott Anderson is CEO of Doubledare, a coaching, consulting, and search firm.

Scott Anderson is CEO of Doubledare, a coaching, consulting, and search firm.

Bringing Community Responsibility to Life

May 25, 2013 by

Pythons. Hooded Pitahuis. Pygmy Marmosets.

Omaha is known by many across the nation because of Wild Kingdom, Mutual of Omaha’s primetime television show that brought animals to life in our living rooms.

But the show’s impact has been more profound for us (Omahans) than it has ecologically speaking. We identify with and claim the show’s reputation as our own. We feel community pride because, after all, it’s Omaha’s Wild Kingdom. This pride generates a strong sense of community responsibility. So maybe not coincidentally, community responsibility is accepted as one of the five Omaha City Values.

Wild Kingdom is one of the coolest examples in Omaha of what is called “traditional philanthropy.” This kind of philanthropy refers to the age-old practice of companies making cash donations or in-kind contributions to worthy causes. Most companies participate in traditional philanthropy because of their sincere desire to be involved in their communities and/or to give something back. Traditional philanthropy promotes reciprocity that produces important business benefits, including increased customer loyalty, higher employee retention, and enhanced corporate reputation.

As compared to traditional philanthropy, strategic philanthropy is a concept that has grown in prominence since the 1990s. This kind of charity involves a process where companies align their community relations initiatives with their core business products and services. Instead of a Wild Kingdom animal television show sponsored by an insurance firm (What’s the connection there?), corporations donate to specific community projects that align with their core competencies. For example, ConAgra does strategic philanthropy by focusing its charity on food and hunger issues, like Kids Cafés.

Some organizations are finding ways to impact their communities through employee engagement practices. Firms like PricewaterhouseCoopers (PWC) recognize that young professionals crave choice. So they’ve created an innovative program for performance incentives that offers a choice to support a cause in their name. Every staff member gets to choose how they receive their incentive—cash, a charity match, a tech package, or a gift card. This is an ingenious way to bring community responsibility to life.

At the furthest end of the community responsibility spectrum are social enterprises. These organizations flip the capitalist model on its head. Maximizing profits is no longer the purpose of these businesses. Profit is a means to a broader end of enhancing the well-being of the community. Nonprofits, as well as for-profits like Herman Miller, Grameen, and PlanetReuse, are bringing community responsibility to life in this way. Their employees and clients are supporting their model with extreme loyalty.

From traditional philanthropy to social enterprise, we challenge Omaha businesses to continue to enjoy the intrinsic and extrinsic rewards that come from bringing community responsibility to life. And don’t forget—a sense of community responsibility starts with our kids. One of the ways the Business Ethics Alliance has promoted this is with our team of moral superheroes who live in the Itty Bitty City at the Omaha Children’s Museum. Take your kids to the museum and kick-start their sense of community responsibility by spending time with superhero Reese.

Beverly Kracher, Ph.D., is Executive Director of Business Ethics Alliance and Chair of Business Ethics & Society at Creighton University’s College of Business.