Three keys to staff retention
How can we survive the great resignation?
In 1987, in the midst of a particularly difficult trading period amid stiff competition and oversupply in the marketplace, a large international aluminium-producing company was in a state of decline and performing poorly. Investors were expecting a new strategic mission from their new leader on how he was going to reduce overheads and improve profits so that the company could survive.
Paul O'Neill had just been appointed as the new CEO of Alcoa, one of the largest aluminium-producing organisations in the world, and he was expected to deliver an inspiring talk. He chose to talk about company culture, rather than corporate strategy.
Although Alcoa already had the best safety record in the US aluminium industry he knew that to retain staff and workers’ loyalty they could, and had a duty of care that they should, do better. Notably, he said: "If you want to understand how Alcoa is doing, you need to look at our workplace safety figures.”
O'Neill was not content to accept the idea that something inside the company was injuring, and all too often killing, their employees. He saw that he needed to pick a fight with the notion that any organisation could justify an “acceptable” risk of death. O’Neill wanted to fight the idea that any risk -any injury- was acceptable. That fight wasn't going to be won by addressing corporate strategy. His fight took him on a head-on collision course with the prevailing company culture.
Collaborative Culture
"Culture eats strategy for breakfast"
~ attributed to Peter Drucker
Was Peter Drucker right when he said "Culture eats strategy for breakfast"?
Bill Ford (grandson of Henry Ford) certainly thought so, and so he put that statement prominently on the wall in the boardroom of Ford headquarters.
Paul O'Neill said, "Focusing on worker safety can transform an entire organisation and dramatically improve culture, quality, productivity, communication, and ultimately profits." What's more, he staked his job and his career on that idea, and in the midst of a particularly difficult trading period, he managed to 9x the Alcoa stock price and 7x the Alcoa income during the course of his 12-year tenure as CEO.
So, what did he do to make this happen? Well, O'Neill knew that finances were not the objective, rather finances are a consequence of excellence. So how can we focus on excellence at work?
"Finances are not the objective, they're a consequence of excellence."
~ Paul O'Neill
O'Neill's approach was one we would do well to learn in this post-pandemic season if we want to attract and retain good people into our organisations as we navigate our way into this new post-pandemic era.
Three Keys to Staff Retention
In an organisation with the potential for truly sustainable greatness treat your employees well by embedding these three keys to staff retention into your culture.
SHOW RESPECT Ensure that everyone is treated with dignity and respect without discrimination by everyone they encounter, no matter their ranking, ethnicity, faith, age, disability, orientation or any other form of discrimination.
FIND MEANING Give everyone the right tools, training, education and encouragement so they are enabled to make a contribution that helps them find personal meaning and value in their lives through their activities at work.
GIVE RECOGNITION Make sure that everyone is recognised regularly for what they do!
So What!
When you are able to attract and retain good people to your organisation you'll be able to increase their productivity and reduce your staffing costs. Creating a collaborative culture using these three keys will help you lead your organisation sustainably into the new era that's emerging post-COVID.
If you'd like to know more about creating a collaborative culture then I'd love to work with you to help you to lead your organisation to be collaborative and cause-driven.
Why not call me on +44 7812 356631 or arrange a time to chat here: let's chat.
