Leaders know that business is a complex system whose facets include inspiration, people, finances, goals, logistics, strategy, the market, stressors and glee (among other things). One of the primary sources of this complexity is employees. Deciding when, how and whom to hire; how to develop the employee; and when the relationship has run its course are a few of the everyday challenges on a leader’s plate. Overlay this topic onto the business plan and it’s easy to see where "the employee factor" requires nimble — but assured — footing in the bottom line and the vision of your business.

It’s a balancing act

Employers hire additional staff members to fill a void in their organizations. The goal is to bring someone on board who can contribute in meaningful ways right away, with the understanding that there will be a learning curve and a correlational rise in business-relevant skills.

Similarly, most employees stay within organizations because of the continual learning experiences and growth. By allowing their gifts to flourish, an employer is strengthening employees’ commitment to the organization and the value they offer.

Successful business balances the tightrope between getting the performance needed from employees (a contribution for which it is paying, in most cases, a very fair wage), and allowing each employee to grow into the roles that will ultimately serve the organization on a greater level. Business leaders must know where this balance rests with each employee so that the individuals don’t feel that they’re stagnating, and the business isn’t paying an employee to learn on the company's dime while not contributing, in turn, to the bottom line. Ideally, each employee should help "make the pie bigger," which benefits all of the group's participants. In less desirable instances, an employee just contributes to the equivalent of paying his own salary, but doesn't enrich or enlarge the pie in any way. In the worst scenario, an employee, for whatever reason, actually contributes to a shrinking pie by consuming more resources from the company than he is in turn contributing.

It makes good business sense

Finding and keeping good employees is always at or near the top of business leaders’ lists of challenges. Allowing an employee to grow while reaping the benefits that you are paying for is key to meeting this challenge:

• Not allowing for this growth can spin a leader and his or her business into the revolving-door of employee recruitment and retention. The employee base will continually churn once individuals feel that the relationship no longer benefits them.
• Tapping an individual’s gifts increases job satisfaction and puts his or her "best self" to work for your business (as opposed to asking a strategist to do detail-focused work, for instance).
• Referrals from top employees are a successful way to recruit qualified new employees. If current employees enjoy their work, they’ll serve as advocates for other like-minded people to join the organization.
• Satisfied, engaged employees can increase productivity and service levels, which can lead to more successful business. (However you define success.)
• You might not have envisioned how an employee’s innate gifts could support your business, and yet the talents are a windfall once applied!

But it can be tough

Sound easy? It can be, but don’t count on it. The time and energy required to allow an employee’s gifts to flourish, and to apply those gifts in valuable ways for the organization, can seem staggering and be draining. As with any business decision, leaders have to ask themselves, "How many of our resources are we willing to put towards this effort before we see a return. And how will that return make our investment worthwhile?"

Here’s the tough part: While an employee is growing, leaders have to ensure that the individual continues to fulfill the needs of business, and isn’t taxing other elements of the business, such as coworkers who are picking up workload slack or resources that are expended in excess of a healthy investment in someone's growth and development.

Five Ways to Make the Relationship Mutually Rewarding

Set clear expectations and milestones — If an employee doesn’t know what is expected of her, how can she fulfill it, much less exceed it? Discuss expectations with all employees, and set milestones to gauge individuals’ progress.

Provide context for the expectations and the desired effect on the business — Knowing the business’ big picture allows an employee to see where he might contribute talents other than the ones you’ve identified as applicable to the success of the business and his growth. Welcoming this participation builds commitment, too.

Discuss the rewards that the employee and the business will reap — Employees who understand how their ideas and actions benefit them and the business simultaneously will make decisions that support a mutually rewarding relationship. Also, a respectful employer-employee relationship is partially based on the understanding that a business is paying for specific services from the employee, and that money comes from other areas of the business, such as the potential bonus pool, the allotment for professional development, or profit margins that help build company stability and opportunity — things that are usually of interest and benefit to both leaders and employees.

Invite suggestions for growth — Your knowledge of the business and the vision more than qualify you to determine what skills best serve the company. However, an individual is the only one who can unearth his or her own gifts and apply them to the business — for reasons or causes he or she deems worthwhile. Make the most of this symbiotic relationship and encourage employees to suggest ways that they can more fully contribute to the organization. (This request also helps build an employee’s sense of worth within the organization.) This can take some practice; many people aren't used to employers taking interest in such things. But with consistent application, you and they can build healthier new habits.

Explain how daily activities can be opportunities for growth — Allowing an employee to grow doesn’t mean sending him to multiple seminars and week-long conferences. It’s the day-to-day work and interactions that serve as teachers. Identify in-house instances that can support an employee’s request to learn more about a specific topic. To strike the balance between contribution and reward, stipulate that mastering these in-house lessons will lead to participation in a seminar. For example, an employee eager to apply natural talents to meeting facilitation can test-run these skills by leading staff meetings and reading topical books before attending a seminar that costs $2,000 and greatly reduces his ability to serve clients for one week.

For more information and great tips for building healthy, mutually beneficial relationships with employees and others, mark your calendar for the arrival of Ivy Sea's upcoming book release: Big Vision, Small Business: Four Keys to Success & Satisfaction as a Lifestyle Entrepreneur (May 2001). For more information about the book or related workshops and services, contact Ivy Sea at the email address below or by calling (415) 778-3910.

Remember, this information is food-for-thought, not customized counsel. The most effective interpersonal and organizational communication program is one that's been tailored to meet the unique needs of your group. If you have questions, connect with a communication advisor or e-mail us at info@ivysea.com for suggestions.