When I started in my first job in the parenteral manufacturing operations in the pharmaceutical industry, my boss invited me in his Office on the first day. The Office was very nice, modern, and there were a library that had business books and some amazing art oil paintings. He advised me in 10 minutes. “Welcome to our factory. It is a school of management and leadership. Go to the library, take books and read them. Perform a great deal of effort and increase your knowledge here. The most important things in our factory are the ability to motivate the employees, transparency and organizational alignment to performing our main purpose.” This boss studied chemical engineering in Germany and established his factory in Turkey. This meeting was very impressive to me. Why he advised me this was the great question. Because I didn’t have effective leadership and management skills at that time!
After that day I worked in the pharmaceutical industry (17 years) and food industry (13 years). I improved my experience, knowledge and personal skills in accordance with modern business management rules, technologies, processes, products, services and customer demands. I completed my MBA. I read a lot of books about strategic management, operational excellence, leadership, innovation management, new product development, strategic marketing , talent management, sales management and competitive intelligence. Now I have an excellent library that contains new fundamental technical and business books.
I learned that compensation and benefits are important but there are other crucial factors that also boost employee morale. Now I know that good employee morale boosts operational excellence and organizational health in:
- Improving work performance, productivity, quality, agility and innovation.
- Reducing costs that are associated with workers’ compensation, absenteeism and presenteeism that are poor performance factors.
- Improving the organization’s image, attracting talented employees and fulfilling company’s social responsibility obligations.
- Improving the organizational knowledge, culture, and retain existing employees and providing operational excellence and organizational agility.
- Be clear, honest, authentic, and be generous with praise.
- Effectively delegate authority and create responsibility. Ensure that responsibility and authority are aligned.
- Develop and implement a long-term competitive business strategy and share it with employees. Effectively communicate and show them the main purpose and make your business strategy theirs.
- Identify and handle conflicts sensibly, fairly and efficiently and seek the ‘win-win’.
- Never criticize or correct in front of others. Ask right questions to get people to learn and improve from their mistakes.
- Apply a good recognition and reward system. They should be satisfied with their feeling of accomplishments.
- Celebrate the success and share the disapointments. Be honest and transparent.
- Create systems and norms that lead to a culture of candor within the organization.
- Train and upgrade their skills.
- Provide challenging assignments and offer opportunities for advancement.
If you want to boost your company’s bottom line you have to invest in employee morale. You will have happy workers and your productivity will increase 12 percent, according to a study from Warwick Business School. So that you will create a passionate and hard-working team to achieve a high performance and aligned organization.
Do you think that compensation is the most important factor in employee morale? Why?