The following is an article by Dan Schwartz, the Chief Executive Officer at Schwartz Business Advisors (SBA) and an affiliate of Impact Consulting Ltd, about the effects of employee demotivation on a business` bottom line.

In today’s corporate environment, the biggest challenge faced by companies is how to reduce operating costs, increase efficiency and maintain a competitive edge over competitors. Recently, the threat of enhanced technology and increased market competition has led many corporations to forget the main driver behind business success - Employee Ambition. 

Employee Demotivation – How & Why 

Employee satisfaction is an aspect that 20 years ago was a pinpoint driver behind business success. Today, this concept appears lost, as most executives overlook employee incentives as they are an operating expense that can be easily eliminated to lower operating costs and enhance profit margins with little business impact– so they think.  

When looking into this driver a bit further, SBA can prove that this concept from 20 years ago still stands true. Consider Google or Amazon for example. Both companies have grown into multi-billion dollar conglomerates and have ever increasing profits. Similarly, both also have a core focus of employee job satisfaction through perks such as in-house daycare facilities, restaurants, even dental practices and doctor’s offices on site. When looking at the Google complex in Silicon Valley, they even have bars, restaurants, and Segways for employees to get around with ease. 

Why do these companies invest so much in their employees? Because this investment is returned 20X over as happy employees generate stronger product output and focus harder on their tasks at hand. 

While google and Amazon are employing some of the world’s top intellect, the same model can be applied across any job function or level. This doesn’t mean that all companies should provide in house massage therapists, doctor offices, and free top-quality food options, and child care, but they should take notice that an employee who feels valued and appreciated, will put that extra 150% effort into their job functions and produce enhanced business products or services. 

At Schwartz Business Advisors, we not only understand this concept, but display it throughout our firm, ensuring that our resources feel valued, are compensated correctly, and most importantly help ensure our clients understand that even the smallest appreciation of an employee’s effort goes a very long way. Even the smallest task such as an email informing a staff member of a job well done, brings positive focus and makes the employee want to work harder without asking them to. This positive attitude is a core pillar of SBA’s foundation. 

 The Fruits of an Engaged Employee are much sweeter than those of one who feels disengaged and unappreciated.

SBA Lean Process Efficiency Expertise

Lean Operations

Expenses are the biggest focus in today’s Executive Budgetary Forecasting Focus. In order to reduce the work burden, enhance expense controls, and raise overall profitability of our clients, Schwartz Business Advisors will work together with the top executives and local “on the ground resources” to find the most efficiency, “lean”, operating procedures and ensure that they are not only implemented, but understood and enhance not just profitability, but the quality of life of the employees involved. 

This Lean Process Strategy involves both a short term and long-term focus, which is another area that most large corporations struggle with. Facing pressure from investors to drive profits upwards, and cut costs, sometimes the short-term increase in cost is not an option they will consider, however should they proceed with it, they will increase profits in the long term 10x over.

An example where SBA has noticed that most companies in recent years are struggling to understand is the concept of employee engagement. Executives feel that cutting costs, removing benefits, will overall lower the overhead and thus raise profits. However, recent studies of this have shown that it is quite the opposite. Providing increased employee incentives, sometimes as small as taking a 1 hour break from work each day to rest, or providing a weekly breakfast on Fridays, creates employee loyalty, stronger engagement in their work, and overall increased productivity when performing the tasks at hand. At SBA, we encourage our clients to do more of these items as they have proven time and time again that an engaged employee will provide more value and efficiency to a client then looking purely at the items financially.  

Dan Schwartz is the Chief Executive Officer at Schwartz Business Advisors and an affiliate of Impact Consulting Ltd. Dan is a confident, innovative financial executive with a decade of experience as an accounting and business advisor. He spent over 5 years serving as a key liaison for multi-billion-dollar audit and consulting engagements and has successfully created, expanded, and sold more than 4 companies prior to founding his consulting firm; Schwartz Business Advisors. 

Through our affiliation with Schwartz Business Advisors, LLC we are able to provide companies with Lean Process Evaluations and System Implementation consultancy services. All future business strategies should incorporate Lean process evaluation and strategy in order to ensure everything you do is adding value to your customer or bottom line results for your business. -  Dan Schwartz, the Chief Executive Officer at Schwartz Business Advisors (SBA) and an affiliate of Impact Consulting Ltd