I wrote the title of this blog with a question mark at the end for a reason. It should actually have an exclamation mark at the end. The employee is indeed a company's most valuable asset. What I have been finding, time and time again, is that business owners and managers have completely lost sight of this fact. It is simply one of the basics of business, that seems to be disappearing more and more. I have actually had managers tell me that they feel that their inventory was their greatest asset. What good is an inventory if there are no people to sell that product, deliver it or even produce it? Frankly, what I have been witnessing over the past few years, are business owners and managers treating their employees in a deplorable manner. I could state hundreds of examples of this but, may aim with this blog is to exact positive change. Complaining has never changed anything in this world, but the creation and spreading of new business models and ideas could quite possibly instill a desire to change, in the minds of business owners and managers.
In the middle part of the 19th century, workers grew tired of the poor treatment they were receiving from their employers. Their solution was to form unions. Unions still exist today because employers still fail to recognize that their employees are their most valuable asset. Workers still feel a need to protect themselves, and force their employers to be fair with them. Unfortunately, unions are a negative force, as they are adversarial in nature. It pits the workers against the employer. There is no respect between the parties and it is counterproductive in nature. From my experience, employees need to know that their employer wants them to succeed. In turn, the employee then wants their employer to succeed. This thinking creates mutual respect and success for both parties. Neither the employee, nor the manager, sees the other as the opposition. Once this new thinking is established, there are a number of other facts that business owners need to be aware of in order for their employees to feel that they truly matter and are of great importance.
In the middle of the 20th century, two noted psychologists developed theories, that have been used in varying levels in business ever since. In 1960, Douglas McGregor published his "X" and "Y" management theories. He established that Theory X managers believed that their employees were inherently lazy, will avoid work if they can, and that they inherently dislike work. This type of management has been proven to be archaic and ultimately ineffective. The Theory Y manager assumes that employees are ambitious, self motivated, and excercise self control. They posses the ability for creative problem solving, but their talents are underused in most organizations. Managers who employ Theory X concepts have generally been relatively successful at keeping employees happy, yet in today's business environment, these 50 year old concepts are sorely lacking. Managers of today need to be aware that employee needs have changed drastically. Without these needs being met, employees will not be happy or content and that will effect the productivity and growth of the business. Employees need to know that their talents are recognized by their employer and that they will be rewarded in some manner. Overlooked talents and experience cost companies dearly.
In 1950, Abraham Maslow developed his hierarchy of human needs. These needs are broken up into five individual levels. The first level of needs, that human being have, are the "basic" needs of food, water, sex (procreation) and breathing. The next level includes security of body, employment, the family, health and property. Following that are the "Love/Belonging" level of needs including friendship, family and sexual intimacy. The fourth level are the "esteem" needs of self-esteem, confidence, achievements and respect of others. The final and highest level of human needs are the "self-actualizing" needs. These include creativity, problem solving and spiritual/personal growth. In our western society, the secondary need of "employment" is necessary to fulfill the basic needs of food, clothing and shelter. So, employment has actually become a basic human need. Many employers believe that this should be enough to keep employees happy and motivated. Many employers do not even compensate their employees well enough for them to meet their basic needs. In the business environment of today, workers needs have expanded greatly and a number of companies are recognizing this and the results are astounding. Workers family and friendship needs are being taken into account. Employers are going to great lengths to ensure their employees health is protected and their self-esteem and confidence are being boosted on a daily basis. Some employers today are beginning to recognize how, in aiding in their employees spiritual and personal growth, the payoff for their business is astounding.
My sole purpose, in writing this blog, is to aid in the expansion of a vision. That vision is that all employers and managers will recognize their employees needs, and seek to meet those needs for the benefit of their workforce and the business. One company, who I believe is the world's leader in this vision, is Mind Valley. Mind Valley is an on-line publishing company based in Malaysia. CEO Vishen Lakhiani's ideas and business model are both ground breaking and revolutionary. Recently, Mr. Lakhiani has open sourced his entire business model in an effort to expand his vision throughout the business world. His goal is have Mind Valley considered the world's "Happiest Workplace." In just a few short years he has, in my opinion, already achieved that goal. Currently, his company attracts the brightest minds from all over the world. Many of his ideas may seem counterintuitive to many managers but, the proof is in his company's success. Over the past four years, Mind Valley has achieved a 100% increase in profits each year. Business leaders such as Sir Richard Branson invite Mr. Lakhiani for private consultations, and Mr. Lakhiani is invited to speak to business people world wide, in an effort to learn of his radical practices. While including a lot of my own ideas within this blog, I would also like to include some of Vishen Lakhiani's ideas as well. Spreading a positive message to as many business leaders as possible will, without doubt, change the world for the better.
Here are but a few of the concepts that Vishen Lakhiani has instituted at his Mind Valley company. Each morning employees log on to "Gratitudelog.com" and state what they are grateful for that day. This website is also open for the general public to use. I use it myself, and find it gives me a very positive start to my day; Employees have a daily meeting whereby they report positive aspects of their workday; 10% of profits are distributed monthly to employees thus increasing employee motivation and pay drastically; The company has a strict 45/5 rule. What this means is that employees are not permitted to work more than 45 hours per week. 5 hours of that must be spent learning something new. This rule ensures that the employee need for family and friend time is ensured. The information that employees learn each week is shared with other employees at a weekly meeting; Since Mr. Lakhiani does not have time to individually praise employees, an internal website has been set up for employees to praise each other; Group meditations are held within the company, whereby employees envision their lives in a year. Company sponsored trips and parties are held as a regular "thank you" to employees. Employees are encouraged to bring their two smartest friends to these parties thus ensuring that the company is introduced to possible new talent; Flex time is also encouraged which allow employees to take ample vacation time. These are but a few of the business practices at Mind Valley, and the result is a very happy workforce, whose highest human needs are met through their employment. The happiness of the workforce has resulted in the attraction of the highest level of talent from around the world, and ever increasing productivity and profits. One last thing that I would like to mention about this company that sets it apart from standard business thinking, is it's concept of business priorities. The first priority of Mind Valley is the world/environment. The second is the customer. The third is the employee, and lastly is profit. Putting profit as the lowest priority has actually resulted in huge profit growth. How many business owners or managers would have ever thought this. How many would have thought that the better you treat your employees, the more you focus on their highest levels of needs, and the more you show them that they are your company's most valuable asset, that your business would grow at an exponential level?
I have stated my goals in writing this blog, and my hope is that I reach as many business owners and managers as possible in spreading such as basic, yet counterintuitive and radical way of doing business. I very short time, I have already discovered one business, that jumped on board with this business model, the day after hearing about it's benefits. That company is Ascending Koi Tattoo and Apparel. I have been invited to work closely with them in the implementation of a truly caring way of conducting business, whereby the employee's, customers and manager's "spiritual and soul" needs are taken into careful consideration. I am positive that the result will be a happy workplace, where the customers enjoy visiting. This will result in great success and happiness for all involved be it employee, customer, manager, owner and planet earth.
I am truly grateful to all who have taken the time to read my writing. The sharing of positive ideas is of great importance to me. I hope I have been able to enlighten or teach something of value with my words. Thank you.
Michael K. Parkinson
