Managing Partner, Montage Partners.
People-first is a common phrase that companies use to describe themselves, even as many household corporate brands are facing increased scrutiny about decisions that sometimes point to opposite practices.
Saying your company is people-first and implementing it through your policies and interactions are two very different things. In my time as a managing partner in a private equity firm, I’ve managed to draw on surveys from our current and past portfolio companies as well as our experience evaluating thousands of companies for a people-first culture.
Here, I’d like to distill these insights into actionable ways that you can put people first in practice at your company.
The Basics
There is no exhaustive list of every benefit, perk or policy that today’s workforce seeks, but there are some important ones: I find that core monetary benefits like competitive wages, paid time off, health insurance and a sponsored 401(k) plan are all necessary to attract top talent.
Still, they are not a differentiator for most companies. These are easily replicated by competition and thus may not contribute as much to long-term employee engagement and retention (though the lack of these can indicate a company that is not people-first and likely has a recruitment and retention problem).
One core element that remains important to engagement is maintaining a safe and healthy work environment. In one survey across our portfolio company CEOs, 88% of respondents rated this as a top tool for maintaining a people-first culture, and it was also the most consistent practice across companies.
Transparency And Fairness
Beyond the monetary basics, people-first companies that promote transparency and fairness seem to have the most significant impact in creating a welcoming place for employees. This starts with clearly documented performance objectives during onboarding and as part of regular performance reviews.
People like to know what to expect and what is expected of them. This transparency should also extend to determining wages and bonuses. At many of our portfolio companies, for example, there is a preference for tying bonuses to employee performance. However, this could differ depending on the industry or individual company. More important than how compensation is structured is how transparent leadership is about the process.
Notice that these practices do not cost additional money to you as a business owner like other trendy perks, but they can have a much bigger impact than having a ping pong table in your break room. As a part of transparency, there are a few areas to focus on.
Advancements And Promotions
Another example of a people-first foundation with a significant impact is providing a clear path for advancement within the company—especially if this path is developed in collaboration with each employee and tailored to their passions and skills.
Engaging Employees
Other ways to promote transparency include engaging employees and sharing company goals with them. Allow them to participate in strategy setting and draw clear connections between their individual work and the company’s success. For example, entry-level employees working for an aerospace manufacturing company may not realize that not only are they contributing to the company’s growth, but they are playing a vital role in ensuring an airplane is safe and functional. This helps add meaning and context to each person’s work.
Getting Feedback
Lastly, it’s essential to provide consistent opportunities for employees to give feedback to company leaders. This could be in the form of 360-degree reviews, employee surveys or consistent check-ins asking what the employee needs to be successful. At our firm, for example, we annually survey all employees on how well we’re living up to each of our core values as a firm.
Leadership
With some CEOs recently going viral for less-than-motivating speeches to employees, it’s no surprise that leadership practices are among the most impactful tools for building a people-first culture.
Leaders that show appreciation rank high, with 100% of our portfolio company CEOs saying this was “important” or “most important” in creating a people-centric culture. This can vary in complexity or cost, from something as simple as verbal or written “shout-outs” to spot bonuses or other tangible rewards. People like to know that their work matters and is recognized.
Showing Interest
A people-first culture means that employees are seen and treated as just that—people with their own lives outside of work. This doesn’t mean being invasive or forcing employees to share personal details, but in my experience, employees appreciate when you show an interest in them—perhaps aware of who their family is or what hobbies they enjoy.
Celebrating personal and professional milestones is a part of this. As with appreciation, this doesn’t have to necessarily incur a cost; a card or email to say happy birthday or congratulations on a wedding, baby or new house show that you recognize and celebrate their lives holistically.
Work-Life Balance
A last hot-button topic related to seeing employees as people-first is flexibility regarding work-life balance. There isn’t a one-size-fits-all solution for this. Some types of work require greater in-person collaboration, and some industries, like manufacturing, don’t allow for remote work as machines need to be manned.
However, if you, as a leader, start from the position of trusting your employees to get their job done at a high-quality level, you can begin to find common ground on what works for both the employee and the company. Perhaps this looks like a four-day workweek. Maybe it’s a parent leaving early to care for their kids but logging on after bedtime to wrap up the day.
For example, during the Covid-19 shutdowns, one of our manufacturing portfolio companies facilitated shift changes for parents who suddenly had no childcare. The employees still worked a full shift, completing the work on time, and the company was able to provide flexible accommodation.
It’s easy to call your company people-first, but it’s not as easy to identify where you can implement real practices that actually make it so. Often, you’ll find that these practices—unlike buzzy perks—have little to no cost to your company yet create lasting employee engagement and retention.
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