Fighting Toxicity - Part 2

Last time I wrote about the responsibility of the servant leader in preventing or correcting a toxic work environment. In that blog, I mentioned metrics that demonstrate why a Servant Leadership strategy is beneficial to even non-Christian businesses. This blog dives deeper into those metrics. As someone who has survived both an employee and a leadership role in a toxic environment, I can attest to the validity of these metrics firsthand.

There are four primary areas where metrics support benefits of Christian business principles and Servant Leadership. They are employee satisfaction, productivity, trust and collaboration, and customer satisfaction.

Employee satisfaction can be divided into employee engagement and employee retention.

Employee engagement is a critical factor in the success of any business. Employees who are disengaged lead to decreased productivity (nearly 20% lower) than their engaged peers. In fact, wellable.com and aihr.com report an 18% difference in productivity between disengaged and engaged employees. If your business runs on 5% margins, losing 18% in productivity hits hard. Christian business practices in general and a Servant Leadership style in particular naturally seek more employee engagement. When a servant leader seeks to mentor or strengthen an employee, they find value in themselves and seek to improve their performance. That engagement benefits the company’s bottom line. Let’s look at a few statistics that demonstrate why employee engagement matters.

·         Profitability – Forbes reports that highly engaged teams show 21% greater profitability, are more productive, and contribute significantly to a better overall financial picture.

·         Absenteeism and Turnover – Forbes also sees a 41% reduction in absenteeism and 59% less turnover when employees are more engaged.

·         Customer Satisfaction – Wellable shares staggering statistics in that 92% of executives recognize the positive impact of engaged employees on customer satisfaction rates. Engaged employees provide better customer service that enhances customer loyalty and satisfaction.

Social media is alight with the cost difference in retaining an employee and hiring and training a new employee. Has your employee asked for a raise, but you see the market trending down for their position? Maybe you’ve thought about replacing them at 80% of the annual salary. If you do that with 5 positions, you can add a 6th and staff up with an entirely new team! While that may seem like a good deal, consider these facts.

·         Skillwork reports that the average cost to recruit a new hire is around $4,700, to include advertising, interviewing, and administrative expenses. During this time, productivity takes a nosedive and can cost the equivalent of 6 to 9 months of the new employee’s salary.

·         Forbes reports that the average training cost is around $1,200 per employee, which includes onboarding, specialized training, and necessary certifications. This doesn’t account for the hidden cost associated with existing employees time to train (plus lost productivity if they aren’t permanent training cadre), the impact of mistakes or errors made during the training period and early years, and the impact to productivity and stability on team dynamics and morale.

These metrics suggest that employee satisfaction, as measured by engagement and retention, is a significant factor in successful business performance. That leads to our second set of metrics: Productivity.

Like employee satisfaction, productivity can be divided into two main sets of data drivers: Core Principles of Christian Business and Servant Leadership, and Positive Impacts on Productivity.

Five core Christian business principles and keys to servant leadership include empathy and active listening, stewardship and responsible management, values-driven decision making, influence and inspiration, and faith integration.

·         Empathy and Active Listening – Effective, committed servant leaders prioritize understanding their team members, clients, and partners – they notice others (CARING). This trait drives stakeholders to feel valued and heard, which leads to higher engagement.

·         Stewardship and Responsible Management – Since Christians view all things as gifts from God, Christian business practices require us to manage resources responsibly and make decisions that benefit employees, customers, and communities (CARING). This level of caring for our stakeholders fosters a sustainable and ethical business environment – the antithesis of toxicity.

·         Values-Driven Decision Making – Christian business practices prioritize ethical decision-making, ensuring choices align with Biblical principles of honesty, integrity, justice, fairness, and good stewardship. This builds a culture of fairness, trust, and accountability that positively impacts business growth (CARING).

·         Influence and Inspiration – Following Christian business practices inspires others to reach their full potential, encouraging personal and professional growth. Creating a sense of purpose through attentiveness to others further fosters engaged employees (CARING).

·         Faith Integration – Another Christian business practice is recognizing that God calls every one of us to witness of His greatness and love wherever we are and in all circles of influence. This leads to more thoughtful interactions, promoting a culture of love, grace, and forgiveness, and seeking ways to improve the lives of everyone involved in the business (CARING).

These five Christian business principles serve as the methods for engaging in a Servant Leadership style of business, but can we measure their impact? Absolutely. Employing Christian business principles positively impacts productivity as measured by higher employee engagement, reduced turnover, enhanced collaboration, improved customer satisfaction, and sustainable growth. Since we’ve already discussed the positive impacts of employee engagement, reduced turnover, and improved customer satisfaction, we’ll focus here on the benefits of enhanced collaboration and sustainable growth.

·         Enhanced Collaboration – Servant leaders build trust within their organization, which enhances collaboration and teamwork. Forbes reports that this type of culture leads employees to stick with tasks 64% longer than if they were working in a less collaborative or supportive environment. They also found that collaborative companies are five times more likely to be high performing, which links collaboration and employee engagement to productivity. Further, nearly 47% of coworkers reported that their work quality improved due to enhanced collaboration.

·         Sustainable Growth – Christian business principles tend to focus on long-term success rather than short-term gains. This “Kingdom Approach” to business leads to decisions that consider future impacts and that can stand the test of time. Such stability creates a ramp for growth that avoids the negative impacts of corporate vacillation and changing executive guidance.

Christian business principles and the Servant Leadership style foster a supportive, ethical, and purpose-driven work environment. This leads to higher employee engagement, reduced turnover, enhanced collaboration, improved customer satisfaction, and sustainable growth, all of which contribute to increased productivity in business.

In conclusion, the integration of Christian business principles and the Servant Leadership style offers profound benefits for any organization, regardless of its religious affiliation. By fostering a supportive, ethical, and purpose-driven work environment, these approaches lead to higher employee engagement, reduced turnover, enhanced collaboration, improved customer satisfaction, and sustainable growth. The metrics discussed in this article clearly demonstrate that prioritizing the well-being and development of employees not only cultivates a positive workplace culture but also drives significant improvements in productivity and overall business performance. Embracing these principles can transform a business into a thriving, resilient, and successful entity, capable of achieving long-term success and making a meaningful impact on its stakeholders.