Are You in a Vicious Cycle?

Many companies find themselves in a vicious cycle, which starts with the mentality that employees are just a cost to be minimized. Pressure to minimize labor costs results in low people investment, which leads to operational problems, which then reduce sales and profits. When sales are lower, labor budgets shrink and the vicious cycle continues.

The Vicious Cycle Hurts Everyone

  • This vicious cycle hurts customers with poor service, investors with lower profits, and employees with bad jobs. Beyond high employee turnover costs, low sales from poor customer service, and higher costs from operational problems, companies that operate in a vicious cycle find it hard to differentiate themselves from competitors, hard to adapt to changes in their environment, and hard or impossible to drive improvement through their employees.

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A Better Way to Compete

The Good Jobs Strategy creates superior value for employees, customers, and investors by combining investment in employees with operational choices that increase employees productivity, contribution, and motivation. The operational choices work well when they are implemented together and they both enable and require investment in people.

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Next Steps: What is the Good Jobs Strategy?

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