“Us against them.”
This thinking is prevalent among many managers who see general employees as simple statistics, interchangeable tools that managers feel entitled to appoint at their convenience and threaten them with loss of income or employment if all their demands are not met.
But what managers don't seem to realize is that without the general employees, managers are themselves a useless statistic whose jobs are based on the simple fact that their subordinates are there.
Employer’s main source of power
All employers have the same goal; to promote growth and increase profits so that the business thrives for as long as possible. It is often seen that a good manager is the reason for increased profits or growth of an employer, but the fact is that the job of managers is only to have an overview and manage (hence the name!) their subordinates gradually and rhythmically. It is the totality that forms the employer, and this entire chain formed by every member of the staff is what contributes to increased profits and growth.
An employer who does not gradually work to support and strengthen all of their employees is undermining themself, their business, and is actually stifling potential growth and increased profits by holding down individual links in the chain.
One obvious sign of an incompetent manager is this inability to support and empower their subordinates, a manager who thinks they are above their subordinates, or who in some way undermine the business by actively keeping their subordinates down.
An incompetent manager contributes to operational deficits by inhibiting employees from doing their jobs to the full; by withholding necessary equipment and tools, denying employees the necessary training, not listening to employees when they come up with ideas for improving work processes or possible projects that could contribute to increased profits or lower operational cost. Employees then feel undervalued in their work and learn that their own knowledge and skills are useless or unwanted by the employer.
A competent manager is able to keep track of all their subordinates, build up each individual and thus contribute to the flourishing of the employer as a whole, as all links in the chain get to grow and strengthen in their work.
Managers are therefore not the individuals who drive the increased growth or profit of the employer. It is the entire chain of employees that is the main power source of the employer, contributing to operations that result in profit and prosperity for the whole.
Employer’s biggest expense
Personnel is also the main cost item of all employers. With each individual employee, there are fixed costs in the form of wages, salary-related fees, costs for necessary equipment and tools, training and continuous education, entertainment, and other indirect costs.
If operations are not going well, it is tempting to cut this biggest cost item of the operation in order to increase the profit of the employer. After all, this is the biggest cost item, and therefore it is most obvious to try to cut it down when a deficit appears in the operation. By defining the general staff as statistics and not as individuals, and not understanding that they are in fact the main power source of the business, it is easy to justify cutting staff costs beyond the potential profit of the employer.
If difficulties arise in an operation, there are certain steps that the employer can take in order to reduce the fixed costs of the operation and thus correct the problem. The cost of employee entertainment is reduced, the employer pays less with each person or simply all entertainment is ceased. All (unnecessary) refreshments are taken away, e.g. free fruit, soda or candy, and often sets up in a "shopping environment" where staff can still access these treats but have to pay for them themselves. Any kind of educational activity or continuing education of staff is reduced, the holding of courses among the employer becomes less frequent or stops altogether. Replacement or purchase of new equipment and tools is drawn to a halt. The hardest step, and final step, is when the employer feels compelled to reduce operating costs by cutting salaries and/or salary-related expenses, but this is then done through salary reductions or, the absolute final step, the dismissal of individual employees.
Cost cutting is often necessary. How the cuts are handled says everything that needs to be said about the employer and the current managers. Transparency and openness throughout the process is essential, it builds trust and teamwork in difficult times. But it should be noted that cutting costs due to personnel in order to increase profits should never be done. Downsizing is to optimize the operation so that the operation gets a chance to straighten itself out and continue to thrive, not to make a profit at the expense of the employees.
By cutting costs related to staff and thus increasing profits, the employer is promoting a negative workplace culture, where the employees perceive themselves as less valuable than the profit, where the employees learn that if difficulties arise in the operation, they are at risk of losing their jobs. Those conditions do not encourage employees to do better, but to look for a safer work environment, where their skills and knowledge are valued.
Effects of incompetent managers
It is important for employers to make sure that managers are competent and up to the task, as incompetent managers hamper the main source of energy for the employer as well as contribute to unnecessary increased costs.
Incompetent managers can contribute to high staff turnover, which further increases an employer's operating costs. The reasons for this are bad management practices by incompetent managers, unacceptable behavior towards employees, or e.g. inexcusable methods of incompetent managers to make business profit at the expense of staff.
Increased operating costs due to high staff turnover is one manifestation of incompetent management. Another is less competence and knowledge among staff in general. This stems from employees who have the necessary skills and knowledge for the job do not hesitate to look elsewhere for an employer who values them as employees. Unfortunately, another reason is often that an incompetent manager perceives that other staff are overshadowing them in some way, so more qualified staff are fired without hesitation.
The low competence and knowledge of the staff leads to higher operating costs, due to the staff's ignorance of the full use of all resources, equipment and tools that the employer has at their disposal. By employing only low-skilled staff, the employer’s biggest resource will contribute little or no growth to the employer, and in the worst cases, the business begins to show a deficit due to the lack of knowledge and inability of the staff to do their job.
Managers are also the main motivators behind the workplace culture and work ethic that prevails at an employer. It is therefore important that the employer makes sure that the managers have the necessary skills to promote a positive workplace culture and a constructive work ethic.
The purpose of HR
When it comes to managing the operating costs related to the employer's staff, the human resources department plays a key role. The payroll department takes care of wages and salary-related costs, and in cases where the payroll department works independently, the HR department is responsible for taking care of all excess costs incurred due to personnel.
It is the responsibility of the HR department to ensure that staff costs are properly distributed, and that no one department or one person is at a disadvantage when it comes to the distribution of new equipment and tools or renewal. The HR department makes sure that there are equal opportunities for all employees when it comes to training and continuous education, and the HR department is responsible for ensuring that the workplace culture is positive and that morale is constructive.
Since management sets the tone for all employees, it is therefore important for HR to keep in mind that if a negative workplace culture or a disruptive work ethic occurs, the problem is more often than not rooted in the employer's management team.
It is the job of the HR department to ensure that all managers, all staff, work as a team towards the same goal.
In conclusion
The best employers are the ones who realize that the business is only as good as the weakest link, and that if there is a weak link among managers, or if managers are weakening links among their subordinates, then that is behavior that needs to be addressed efficiently and quickly.
The best employers are those who understand the importance of a positive workplace culture, and a constructive work ethic, and work effectively to strengthen and support all links in the chain of their staff, regardless of job title, status, or who the individual is.
The best employers are those who realize their most valuable resource, the entire workforce, and the importance of building and strengthening that resource.
The best employers are the ones who understand that the staff is the only resource the employer has that will always give back many times its real value if handled properly.
For staff, it is important to remember that the demand for how we are treated comes from ourselves, from the staff. Do we work for an employer who repeatedly exceeds our limits, cheats us, treats us as an expendable statistic, or in general exhibits negative behavior towards us – If so then We should stand together, against our employer, and demand a change in behavior.
The staff is the cornerstone of all employers.
Together we can drive positive changes in the labor market.
Article first appeared on Smartland 09.05.2023 [link].