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Deeping dive - Part II Employer's Role Employers generate revenue through the value created by employees, and this revenue is shared with employees as compensation. Benefits ❇️Improved Financial Performance: Purpose-driven companies often outperform their peers financially. For example, companies studied by Raj Sisodia in Firms of Endearment outperformed the S&P 500 by a factor of 14 between 1998 and 2013. ❇️Employee Satisfaction and Loyalty: When employees feel valued and see the direct impact of their work on the company's success, they are more satisfied and loyal. This emotional attachment to the organization fosters a willingness to go above and beyond. ❇️Enhanced Organizational Culture: A strong sense of purpose and clear communication of how employees contribute to the company's success can create a positive organizational culture. This culture, in turn, supports better decision-making and fosters trust and collaboration. Case Studies ❇️Netflix and LUSH: These companies emphasize a corporate purpose beyond profitability, integrating environmental and social concerns into their business strategy. This approach has helped them excel in creating a positive organizational culture and achieving long-term success. ❇️Johnson Controls: During a significant transformation, Johnson Controls used its purpose of creating a more comfortable, safe, and sustainable world to guide its strategic decisions. This focus on purpose helped the company navigate complex changes and align its strategies with its core values. ❇️EY's Research: EY found that companies with a clear and driving sense of purpose are better at innovation and transformational change. Executives who prioritize purpose as a core driver of strategy report greater success in these areas

Deeping dive - Part IV (when it goes wrong) Employer's Role When a company hires an employee for a single task and cannot effectively utilize them for other roles, expecting the employee to bring additional value without providing the necessary support can lead to several issues: ❇️Opportunity Cost: High-priced employees working on low-value tasks miss opportunities to contribute strategically, leading to missed revenue and innovation. This misallocation of resources can hurt the company's bottom line. ❇️Employee Disengagement: Assigning tasks beneath an employee's skill level can lead to frustration and disengagement. Disengaged employees are less productive and more likely to leave, increasing recruitment and training costs. ❇️Escalating Labor Costs: Using high-priced employees for marginal tasks escalates labor costs unnecessarily. This inefficiency can erode profitability over time. Case Studies ❇️Mothernode: case highlights the pitfalls of assigning marginal tasks to high-priced employees, such as opportunity costs, employee disengagement, and escalating labor costs. This misallocation of tasks can lead to decreased profitability and a toxic work environment. ❇️Green Hat Games: case shows that companies failing to embed their core values into everyday practices face higher turnover rates and disengaged employees. This lack of alignment between values and actions can lead to organizational instability and increased costs. ❇️Multi-National Bank: A case study from the Institute for Employment Studies found that long working hours and limited role diversification in a multi-national bank led to high levels of stress and turnover, impacting the company's overall performance and employee satisfaction.

Deeping dive - Part I Corporate Value Working in a corporation can provide a sense of purpose by understanding the value one brings to the organization and the world. Benefits ❇️Increased Employee Engagement: Employees who feel a sense of purpose are more engaged and productive. Companies like Johnson & Johnson and Nokia Siemens have demonstrated that engaged employees are more likely to stay with the company and contribute to its success. ❇️Higher Retention Rates: Employees who find alignment between their personal purpose and the company's purpose are more likely to stay longer. McKinsey's research shows that employees who feel their work aligns with their personal purpose are healthier, more resilient, and more likely to stay at the company. ❇️Enhanced Innovation and Transformation: Purpose-driven companies are better at innovation and transformational change. EY's research found that companies with a strong sense of purpose are more successful in driving innovation and achieving consistent revenue growth. Case Studies ❇️Johnson & Johnson: This company emphasizes employee engagement by acknowledging and appreciating their employees, focusing on holistic wellness, and providing development-focused initiatives. These strategies have led to a high-performing company where employees are flourishing and productivity is increased. ❇️Patagonia and Unilever: These companies recognize and reward behaviors that align with their corporate purpose, contributing to a genuine, purpose-driven culture. This approach has significantly enhanced their long-term shareholder value and societal contributions. ❇️Atlassian and Cisco: These companies offer models where employees perceive their daily roles as contributing to a larger purpose, thereby fostering a purpose-driven culture that enhances employee engagement and loyalty. Case Studies ❇️Johnson & Johnson: This company emphasizes employee engagement by acknowledging and appreciating their employees, focusing on holistic wellness, and providing development-focused initiatives. These strategies have led to a high-performing company where employees are flourishing and productivity is increased. ❇️Patagonia and Unilever: These companies recognize and reward behaviors that align with their corporate purpose, contributing to a genuine, purpose-driven culture. This approach has significantly enhanced their long-term shareholder value and societal contributions. ❇️Atlassian and Cisco: These companies offer models where employees perceive their daily roles as contributing to a larger purpose, thereby fostering a purpose-driven culture that enhances employee engagement and loyalty.

Deeping dive - Part III (When it goes wrong) Corporate Value ❇️When a company hires an employee for a specific task but cannot effectively utilize them for other roles, it can lead to several negative outcomes: ❇️Employee Disengagement: Employees may become disengaged if they feel underutilized or pigeonholed into a single task without opportunities for growth or broader contributions. This disengagement can lead to decreased productivity and morale. ❇️Wasted Talent and Potential: Highly skilled employees may feel their talents are wasted if they are not given opportunities to apply their skills in diverse ways. This can lead to frustration and a sense of stagnation. ❇️Increased Turnover: Employees who feel they are not contributing meaningfully or growing professionally are more likely to seek opportunities elsewhere, leading to higher turnover rates and associated costs. Case Studies ❇️Enron: Enron's case is a classic example of how hollow corporate values can lead to employee cynicism and disengagement. The company had strong-sounding values like "Communication" and "Integrity," but these were not reflected in its actual practices, leading to a catastrophic collapse. ❇️Hi-Tech Service Sector Company: A case study from the Institute for Employment Studies highlighted a hi-tech service company where employees felt overworked and undervalued due to long hours and limited opportunities for professional development. This led to high levels of stress and turnover, negatively impacting the company's performance. ❇️Mentorloop: Research by Mentorloop shows that when employees perceive a lack of avenues for professional development or career advancement, their motivation to invest in the company diminishes, leading to disengagement and higher turnover

The Dual Nature of Corporate Value and Employer's Role: A Critical Examination 📌 In today's dynamic business landscape, the relationship between employees and corporations is multifaceted, offering both opportunities and challenges. This longread delves into the nuanced reality of corporate value creation and the employer's role in fostering employee engagement and productivity. 📌 On one hand, working for a corporation can be a source of profound purpose and satisfaction. Companies like Johnson & Johnson and Patagonia have shown that aligning employee values with corporate goals can lead to increased engagement, higher retention rates, and enhanced innovation. These success stories highlight the potential for corporations to create environments where employees thrive and contribute meaningfully. 📌 However, the corporate world isn't always a perfect match of talent and opportunity. Cases like Enron and certain tech sector companies reveal the darker side of corporate culture, where employees can feel underutilized, pigeonholed, or disconnected from the company's broader mission. This misalignment can result in disengagement, wasted potential, and high turnover rates. 📌 Similarly, the role of employers in generating and sharing revenue through employee contributions is a double-edged sword. While purpose-driven companies often see improved financial performance and employee satisfaction, as demonstrated by Netflix and Johnson Controls, there's also a risk of misallocation of resources. Some organizations fall into the trap of assigning high-value employees to low-impact tasks, leading to opportunity costs and diminished morale.

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