A company's employees are rarely considered crucial stakeholders. However, they directly impact the organization's success.
The employees are responsible for creating, selling, and delivering goods and services. They’re also invested in the success of the business because of their wages and job security. Not only that, but if they’re satisfied with their job, they likely perform better, which is crucial for a company’s growth and success. Thus, it may be safe to say that their treatment can determine whether or not they will engage in it to the fullest extent.
In this regard, companies must look into how they treat their employees as part of their measurable efforts toward creating a successful business. Especially, if they want to contribute to the betterment of society at large. However, just how far can treating employees as crucial stakeholders go?
The following are some of the best ways companies can make employees crucial stakeholders:
Stock options are essentially shares of a business that are given to employees as compensation.
The value of these shares can rise above the actual payment, especially if the company has considerable success. Thus, giving employees stock options can be seen as an effective way of paying them and keeping them happy.
It also gives them a crucial stake in the company's future. Stock options are not only advantageous to the employees but also to the business itself. If a company has the capacity to offer them, you should know in advance that the race for a position will be demanding.
Now, how can you find them? You can visit JobSage or any other employer review site to know what the experience is like. Find out how such a detail impacts and influences the perception they have about the company. You can find this out from both former and current employees.
When an organization knows that its workers have financial stakes in it, it means they will be negotiating from a position of strength. This can lead to gains on both sides. Employees can often demand better terms for their work, and employers gain more value from their employees through maximized work performance and productivity.
A sabbatical is a period that one spends away from their regular job or profession. This can come from one's own choice or as a condition of employment. It provides those who take part in it with time to do something else. For example, travel or pursue other interests, and usually consists of unpaid leave.
Companies that want to treat their employees as crucial stakeholders by giving them sabbaticals can also gain from it. It can help increase their employees' morale and encourage long-term loyalty.
Therefore, for companies that haven’t considered giving employees a planned sabbatical, now could be the perfect time to do it. This time off work, which is also called the Midlife Gap Year, can provide employees an opportunity to refresh and spend quality time with their loved ones. Whether they go for a holiday trip to another place or stay at home, they should use their break to slow down and enjoy things without any stress.
However, taking the time off for a certain period of time and still keeping track of their financial goals could be one of the pressing concerns of the employees. In that case, companies may seek the assistance of financial advisors and planners to help their employees align their finances while allowing planned sabbaticals for employees to focus on other important things in life. By doing this, employees would feel more appreciated and, in turn, engaged in their work as they return.
Work-life balance is also an important factor in retaining talent. Nowadays, employees often want more time for themselves or their families.
The best way companies can achieve a balance is by implementing flexible working practices. These can accommodate employees' needs, including their personal ones.
These include staggering work hours and telecommuting options. Both of which allow workers to do their jobs from almost anywhere while still spending more time with their families or pursuing other interests. Moreover, there are also other ways to improve work-life balance for employees. These can include providing substantial break periods during work hours, setting up health support facilities, and assessing workloads regularly to make adjustments, if necessary.
More companies are starting to realize employee health increases productivity. In turn, this increases the company's success, and thus are finding ways to implement work-life balance.
Companies that want to treat their employees as crucial stakeholders with a stake in their success can also benefit from giving back to society. Working for socially responsible companies has become desirable for workers, especially those with families.
More companies are looking into ways of integrating social responsibility initiatives with their corporate goals to provide a win-win situation for everyone.
Certain companies have started to implement these practices already. Still, it can be a challenge for others who are just beginning since the effects of employee treatment on the company can take some time to materialize.
However, as mentioned earlier, treating employees as crucial stakeholders will lead to better business results in the end.
Another way companies can treat their employees as crucial stakeholders is by giving them the autonomy to work when, where, and how they want. Giving them this type of freedom means they will feel valued since it will respect their personal views regarding how they would like to do their job.
It also allows for better work-life balance since employees are not tied to a particular schedule and location. Employees who feel valued by their company will be more engaged and happy with their jobs, which is suitable for everyone, resulting in higher productivity levels.
It's also been shown that autonomy has strong links to job satisfaction, commitment, engagement, and well-being at work.
There are many ways to treat an employee as a crucial stakeholder in the business. Doing so is not only good for the organization but also for the worker.
Both employer and employee can benefit from respecting each other's needs, leading to better work-life balance, more job satisfaction, higher productivity levels, and ultimately strengthening their relationship with each other.