3 Reasons why companies don’t invest time in their Emotional Salary/Compensation

3 Reasons why companies don’t invest time in their Emotional Salary/Compensation

Just recently I’ve begun coaching a couple of leadership professionals that lead operations in the country. These different operations/companies employ a good amount of professionals (50+) and have plenty of growing potential in the near future.

During these coaching sessions I was able to survey important data/facts about the ways and ideas they executed around the principle of Emotional Salary and to my surprise they were not doing anything in that matter. After realizing this, I thought of asking these leaders why the Emotional Salary was not a priority for them (2018 a year of changes and advancements) and their responses were somehow disappointing.

After this sessions I believe it’s important to communicate the most common mistakes companies do that jeopardize their capabilities of retaining talent, mostly around emotional salary. Feel free to take this blog to your pocket and use it to analyze your organization’s reality.

Note: All coaching sessions are private so no name of company or professional will be disclosed and the individuals have given approval to comment on this topic using their examples

Reason #1: Companies don’t trust their employees.

The most common reason among the different conversations and sessions was TRUST. These leaders mentioned that they had little to none trust that their members could work from home and mostly that they could “effectively” execute their job.

After these statements it is important to discuss the meaning of trust and how it integrates in the work environment.

Trust is one of the most critical components an organization needs to be successful; now let me focus on one thing. This type of trust is not the one in which you will let everyone manage your bank account or leave them alone in your house. The trust that I’m talking about is the one in which you are hiring someone because their knowledge and background in combination to their maturity will be a fit to the position they are being employed.

The #1 reason why companies don’t trust their employees starts in the hiring process…BOOM…(mic drop). Take your time to hire the right people, make sure their objectives (professional) align somehow to your company’s mission. If you rush through hiring, you will put someone that doesn’t belongs there.

Now, if you have someone already in seat and trust is not there, don’t punish them for your mistakes, take accountability and get creative around the measurement and tracking so that you can use it to create technical trust. (Technical trust stands for a type of trust created upon processes more than relationship)

There is a position for everyone and someone for every position!

Reason #2: Companies don’t understand the difference between work and life.

The second reason that is an unfortunate reality is not understanding that people are not machines.

Many big companies in technology are now so focused in work-life balance that they are putting business “laws” in place demanding their partners and distributors to have a work-life balance policy, if not they won’t engage in commercial relations until they do so. How amazing??

If companies like these are so focused in work-life balance, why smaller companies or less demanding ones can’t do the same??? Answer…(drums)….because they don’t want to…BOOM…(mic drop..again).

Multi million dollar companies are making this happen and so should you! In today’s world there are many markets that learning the importance of the emotional salary and a market is not only built from companies, we also have clients.So here is a tip to make this happen.

Be open and communicate realistic yet healthy expectations! In today’s reality people don’t care about how fast you can get things done (majority), they care about how good the quality and service is.

Bottom line, if you are running an operation based on emotional sacrifice you are not doing a good job. Go back and check the internal process, customer relationship and business model and do changes. You will see a mid term benefit, both financially and emotionally.

Reason #3: Companies are afraid of trying and failing.

This last one is a concerning topic. Organizational leaders are feeling afraid of trusting and then be disappointed of their decisions.

This one is kind of alarming because it demonstrate how bad preparation we had from an emotional perspective. Many professionals invest their time and money obtaining knowledge that strengthens their quantitative skills and gives them the “specs and processes” to execute their careers but (yeah the big BUT) they forget about a formula that many great leaders have used to become pioneers in their fields.

Practical Knowledge + Emotional Training = Success

A leader that lets fear or lack of security become part of their leadership still is basically doomed. During the coaching sessions I realized that even though they were extremely knowledgeable of the practical side, they lack of strength to take decisions.

Just to give you guys and example, one of the leaders had the strength to say no to one of his contributors but didn’t had the same strength to “fight” with boss for a good purpose. Basically he has afraid of challenging his leader.

Being a leader is more than just review the numbers and coach, is also about having the strength to fit for what it is right! Now back to reason #3…

If you feel afraid of trying, it can be due to two main situations.

Situation #1 : You are not hiring the right talent and this is causing fear.

Just like reason #1, hiring can be a block on the way of trust but here is a solution. TRUST THEM! If you communicate the pros and cons of any agreement, you can guarantee that the test will serve its purpose.

Situation #1 : You are not a good leader (YET)

Assess yourself against the five levels of leadership (John Maxwell) and understand in which level you are. If you are on the bottom levels, well the fear has its source, your haven’t invested the right efforts to build a solid and healthy culture/relation with your team.

Now if you are on the top levels, its time to grab the bull by the horns and make decisions that support your emotional salary offering.

Don’t let the ancient ways of leadership/management stand in the way of creating something good for a greater good. The world is evolving and so should we and if we (companies) don’t make a drastic and positive change we won’t be able to retain talent and succeed as an organization.

Important fact:

Just in the US 23% of retail and services companies closed their operations due to lack of financial results. 90% of the business owners blame the high rotation of personnel as a component that affected their business objectives. The other 10% blamed it on the market.

Pay them well emotionally and they will pay you back with interests!

Thanks for taking the time to read this blog!

#coaching #business #emotionalsalary #success

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