Why Focusing on the Bottom Line Can Actually Hurt Profits

While an oversimplification such as “what you measure grows” has some truth to it, like many sayings, it only tells part of the story. What’s missing, in this case, relates to prioritizing the success of your employees; when neglected, it can negatively impact your bottom line in the long run.

Happy and engaged employees are productive workers. While perks, competitive salaries, and benefits are important to employee satisfaction, workers also want to feel valued at work. Workers who feel like they matter at work are 3.2 times more likely to be happy at work and 3.7 times more likely to recommend their workplace to others (Lobosco, 2022).

Those who do not feel cared for at work are approximately 66 percent less healthy and happy compared to those who feel their employer values them. The percentage of productive workers drops from 90 to 58 percent if they do not feel valued by their workplace (Metlife, 2023).

Given that only 55 percent of surveyed workers feel that their employer values them (Metlife, 2023), this represents an opportunity for organizations with superior cultures to attract and retain the best talent and enjoy higher productivity and profitability compared to their competitors.

Here are five tips that will give you an edge toward helping your employees feel valued and enjoy good health and productivity, which ultimately can benefit your bottom line in multiple ways.

Explore your motivation

A basic human need is to feel seen and appreciated. According to the Arbinger Institute, seeing others as a means to an end, an obstacle, or irrelevant informs our manner of being and behavior in a way that is noticeable to others. This mindset paradoxically tends to encourage the behavior in others that we are trying to minimize or eliminate.

For example, if deep down I feel that my only objective is to move the bottom line, then I may show anger or frustration when an employee’s personal life interferes with their ability to come to work. My behavior could increase the amount of stress in the organization and promote conflict with my employees. Subsequently, they may be less motivated to come to work, less healthy, and less productive. Therefore, I am encouraging the behavior I’m attempting to minimize.

In contrast, if I express empathy and concern for their situation and work collaboratively with them to enable them to complete their tasks (flex time, teleworking, trading shifts or tasks, etc.), I then foster trust and productivity by prioritizing their success and well-being.

Though helping workers feel valued is good for the bottom line, caring for the well-being and success of others is also the right thing to do. Focusing on this strategy as the pathway for long-term success has the added benefit of helping you to tap into a sense of meaning and purpose in your role at work as well.

Develop others to be their best

Many of us get paid to identify and solve problems. While this quality is essential at work and in life, when problem identification targets the character of others (or ourselves, for that matter), it can quickly become more of a liability than an asset.

Instead, focusing on the learning and growth trajectories in ourselves and others is a more encouraging and inviting framework for improvement than fixating on what’s wrong.

Discovering your employees’ strengths and passions and channeling them into the service of the organizational mission can produce a win-win for all involved: They will feel energized and engaged by using their strengths to do meaningful work, and the organization will enjoy their best efforts.

This exercise has the added benefit of discerning where overlap exists (or is absent) between a worker’s strengths and interests and organizational needs. Suppose a good fit is not evident despite best efforts at training, skill development, and task or role switching. In that case, it may become apparent to both parties that the employee might best be served by working in another organization where their talents can be used for maximum impact.

Look beneath the problem.

It’s all too easy to oversimplify challenges at work as originating from a “problem” teammate. Often, the problem is a symptom of an underlying issue that has not been identified.

For example, the Bowen Theory, long used in family systems theory, describes how emotions in groups affect individual and collective relationships. Like at home, at work, we may assign labels to workers as the “problem,” the “good one,” etc., which serves to maintain the group’s social structure and dynamics. While such strategies reduce group anxiety in the short run, they can have harmful and counterproductive outcomes over the longer term.

Though viewing problems through a group relationship lens might feel impossibly complex, it also offers many more opportunities for solutions. Improving mindfulness and self-awareness individually and collectively within the group and using openness and curiosity to learn about each other’s needs, talents, and desires are helpful tools for managing stress, differences with others, boundaries, and conflict (Anxious Achiever Podcast, 2021). Such skills are beneficial in our personal lives as well and could have the added benefit of improving employee resilience throughout many aspects of their lives.

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Celebrate learning and growth.

Team goals and metrics matter in the workplace. However, some of the most important successes will not be found on the spreadsheet.

Teamwork, commitment, dedication, courage, kindness, creating trust, learning, and growth are behaviors and outcomes that are critical to the success and well-being of your team.

Though such metrics are not easily measured, one can still acknowledge and celebrate these successes in individuals and groups to improve self-awareness, build goodwill, and communicate your priorities. Then watch them continue to grow.

“There are no mistakes in life, only lessons” — Robin Sharma

Be a role model

When you are transparent about your efforts to become more effective in your social and emotional skill development, you optimize the conditions for others to follow suit. Share resources that can help all learn to be successful using foundational life skills, such as managing self and others.

All areas of your life, including your personal and professional bottom lines, can benefit from such a commitment.