Research has shown that the inclusion of employee voice in corporate business strategy formulation is a crucial determinant of both job quality and company success. In this context, job quality means employee satisfaction, which, in turn, impacts employee performance. Employee performance drives company success, which generates employee rewards and shareholder value. In this simple cause and effect explanation, we can see the pivotal role employee voice can play in business operations.
But, while some companies recognize the importance of incorporating employee voice in their management practices, is it only on paper, or do their managers implement it? The former is frequently the case. Too often do we hear of employees being asked to make their voices heard -- through anonymous surveys, open discussions, or even in the execution of their daily tasks -- but who end up having their opinions and ideas ignored, discounted, or perhaps shot down without due consideration.
What happens when company executives do not consider employee voice? On the one hand, they close themselves off from benefitting from employee input about matters that impact them at work. On the other hand, they deprive themselves of information that could be critical for driving innovation, productivity, and organizational improvement, which are all catalysts of company performance.
For example, employees may have valuable problem-solving ideas concerning the dispensation of a company’s services or how to increase sales. After all, they, more than executives, interact directly with the market and with customers. So, they are more likely to have answers to questions like why do our customer service programs not lead to improved customer satisfaction? Are we giving customers what they need, or is it more what we think they need? How do we adapt go-to-market processes to match up with markets that are in flux? What can we do to get out of the rut of doing the same thing in the same way over and over yet expecting different results?
Ultimately, companies lose valuable employees due to the absence of employee voice. Employees who feel they have much to contribute but realize they are not being heard get frustrated and leave. Some of those who remain throw in the towel and just go with the status quo, losing all interest in problem-solving or putting forward innovative ideas to improve company performance. At the end of the day, who benefits, and who loses? Executives, employees, customers, shareholders? One, some, all, or none?
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