workforce leadership

Leader holding a paycheck out.

The Price is Right: Why Higher Salaries Won’t Single-Handedly Solve the Workforce Crisis

May 16 @ 5:18 am CDT

Six years ago, Dan Price, the founder and CEO of Gravity Payments, set off a media firestorm when he raised the firm’s minimum salary from $35,000 to $70,000 and slashed his own $1 million salary down to $70,000. He was hailed a hero by some and harshly criticized by others. Many analysts predicted the company would soon be bankrupt. But that has not happened; instead, the company is thriving. Six years later, revenue has tripled, the number of employees has doubled, the turnover rate was cut in half, and both the starting salary and CEO salary remain at $70,000. Here and now, wage increases are top of mind as employee turnover is skyrocketing and prospective employees are being wooed with higher starting salaries and sign-on bonuses. Undoubtedly, pay raises are needed. The wage gap is significant. According to the Economic Policy Institute, average CEO compensation is 320 times more than the salaries of their typical workers. (Six years ago, it was 265 times.) But make no mistake about it: money can’t buy love. For 20 years, Gallup has reported 70% of the workforce is disengaged, and companies have thrown money at the problem investing more than ever in perks and bonuses to try to reverse the decline. Yet, employee engagement hasn’t improved. At all. If money isn’t having the desired effect, what will? Trust. The organizations thriving and successfully engaging employees are trustworthy. Specifically, employees believe their leaders are credible, honest, and fair, and that their leaders respect them. Some people will read Price’s story and only see dollar signs. Those people are missing it. Employee engagement can’t be bought. While fans and critics alike marvel at Price’s pay structure, that’s only half the story. His team has been referred to as fiercely loyal which can only come from a trusting, people-first workplace culture. Here’s how one employee described Gravity Payment’s leadership during the pandemic:   “They didn’t do any layoffs. They didn’t raise merchant fees. They let the…

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Knowing your people

The Importance of Knowing Your People

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May 16 @ 5:18 am CDT

Last week, I had an opportunity to speak to a great group of folks from the Association of Organ Procurement Organizations about generational differences in the workforce. One of my favorite parts of that experience was when we broke into groups based on our generation and answered a few questions about what we valued. Oh, I should probably mention that I’m a Gen Xer. What does that have to do with anything? A lot, apparently. Last week, I had an opportunity to speak to a great group of folks from the Association of Organ Procurement Organizations about generational differences in the workforce. One of my favorite parts of that experience was when we broke into groups based on our generation and answered a few questions about what we valued. I do this exercise regularly in my presentations and one thing is always the same: generations value different things. However, on this day I heard something new from the Gen Xers. In response to more than one question, they brought up concerns about their health. I noticed, but I didn’t think much of it until later when I was putting my heating pad under my neck. The generation of people born between the years 1965-1981 are starting to experience the effects of aging and it is changing what they value. This is incredibly important for workforce leadership to pay attention to if they want to retain a multi-generational workforce. The 21st-century workforce is nuanced. To be successful, an organization must pay attention to the individual needs of its people. The tricky part that my recent experience with the AOPO illustrates is that needs and values evolve. So what to do? Pay attention. Keep asking questions. Keep learning about your people. Be willing to evolve with them and they will stay engaged year after year. Now, where’s my heating pad…   If your organization is struggling, now is the time for action. Register for our newly developed courses specifically…

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