Far too often you hear about workplaces where managers micromanage and put all sorts of controls on their people because, basically, they don’t trust them. Ironically, the companies that follow these measures are always struggling, as these actions cost the company far more than the cost savings they were intended to produce. Those companies that know how to truly lead and support their people produce increases in profitability of tens or even hundreds of percent.
The restrictions that the struggling companies place on their employees can range from having to sign in to parts of the office to having to sign out pencils or having to report to an infirmary to prove that you’re sick, even if you’re flat on your back. Essentially, by treating the employee as someone who is not trustworthy, these restrictions become a self-realizing prophecy by creating untrustworthy behaviour among the employees, even employees who wouldn’t normally behave in such ways.
I recently heard some stories on the radio that highlighted why these Draconian measures don’t – and can’t work. Callers spoke of experiences, in this case, in the restaurant industry. One caller told of one bar she worked at where the owner became concerned about the ‘free’ pop and coffee the employees were consuming, so he deducted $8 from each paycheck to pay for ‘unlimited’ drinks (which he, of course, thought was being quite magnanimous). The staff was so offended that they went out of their way to waste pop and coffee whenever the owner wasn’t around.
Those drinks are dispensed through a hand-held unit with buttons for each drink. After hours, staff would routinely stand around talking by the sink holding these buttons down, pouring pop down the drain for half and hour or more. Before someone had finished half a drink another staff member would throw it away and refill it, saying that the pop was flat, or the coffee cold.
In another restaurant, wait staff kept their tips in a jar. When someone broke in one night, and broke a window, the owner took the tips to pay for the window. A few days later, two of the staff were down in the storeroom and felt quite justified in sneaking a few bottles of wine into their bags, and then quitting a couple of days later.
I’m not writing to excuse the behaviour of the employees ‘getting back’ at their bosses. However, it is easy to understand – and predict. Employees who are treated without respect and as if they are untrustworthy feel resentment, and even honest people can justify little things to get back at the employer, like taking office supplies home, or wasting the resources of the company.
The costs to the organization are not just the lost product, but also the lack of productivity of the employees, and other associated costs, such as turnover. Unfortunately, these are ‘hidden’ costs and not easily identified. The more that these managers try to use policy manuals to tighten their grip on their people to get their costs down, the more slips through their fingers in ever increasing amounts. You simply can’t write policy fast enough to control everything. The more you write, the more holes you create. And the biggest cost is the loss of commitment from the employees.
Generally, these managers say that this is reality and this is how you have to deal with it. There’s no other option. Well, let’s look at another type of ‘reality’ – that of those companies that actually trust their people. They control the right things, not everything, and they show the lasting results.