In recent posts on our blog I’ve mentioned the following as ROI for small organizations that define employee engagement, build and utilize practices to engage employees, and turn to manager team building to create a strong culture that trickles down from leadership:
- Lower turnover/higher employee tenure
- Greater camaraderie that makes it less likely people will quit, and also boosts productivity
- Typically stronger sales and revenue growth
- Tax savings if employee ownership is involved
- Free publicity
But there’s another one that has perhaps a greater impact on the bottom line than any of the above: greatly decreased chance of a stakeholder (employee, supplier, customer) bringing forth a lawsuit against your business.
I was astounded to read on HR Daily Advisor recently that according to a survey by the law firm Fulbright & Jaworski L.L.P., close to 4 out of 5 companies experienced new litigation in 2008. Compare that to cases you could count on one hand among the 70 companies that make up our Top Small Workplaces Winners and Finalists over the last two years.
And virtually all of those were due not to egregious behavior by the managers or the leadership (not as a result of a toxic company culture), but by natural oversights or miscalculations in contracts and other arrangements between employees and the company. In addition, to my knowledge these cases were settled quickly and amicably.
So if you want your organization to fall among the 21% that are litigation free, your seemingly “soft” focus on fostering good team building can go a long way toward making that happen.
Cross-posted from the Winning Workplaces blog.
About the Author: Mark Harbeke is Director of Content Development for Winning Workplaces. Mark’s role is to ensure that content on Winning Workplaces’ website is up-to-date, accurate and engaging. He also writes and edits their monthly e-newsletter, Ideas, and provides graphic design and marketing support. His experience includes serving as editorial assistant for Meredith Corporation’s Midwest Living magazine title, publications editor for Visionation, Ltd., and proofreader for the National Association of Boards of Pharmacy. Mark holds a bachelor’s degree in journalism from Drake University.Winning Workplaces is a not-for-profit providing consulting, training and information to help small and midsize organizations create great workplaces. Too often, the information and resources needed to create a high-performance workplace are out of reach for all but the largest organizations. Winning Workplaces is changing that by offering employers affordable consulting, training and information.