Do you work for a company that is people or profit first?
We live in an era where financial performance is the major measure of business success. As the recession still lingers, leaders of business in every industry are faced with the challenges of maintaining and growing profit. It is a tough task and as I analyze and connect with leaders in the restaurant industry, I have identified two distinct paradigms of thought which from an interesting dichotomy of financial sustainability.
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These two paradigms are different in nature and develop the course of decision making throughout a culture. Companies are either:
1. Developing business through focus on profit that depicts their people processes.
2. Having their people processes first that in turn, develop profit.
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Those that have the eye on the bottom line and use that metric as the focal point to cut costs, be below market on compensation and focus on quantity over quality are the profit first companies. I certainly understand the short term ramifications taking these measures can have on increasing profitability; however, I fear these tactics will not lead to sustainable profits and will certainly lead to a higher turnover. The long term ramifications of employee turnover are a major financial stressor. Leaders in these types of organizations tend to be short term thinking and less in tune with the most important silent business partner – organizational culture.
On the other hand, organizations that have derived their profit from people first mentality are winning the war on talent, developing healthy culture and loyalty from their team. These outputs do not hit the bottom line in the short term; however, they will trump long term success and sustain companies for growth. These companies realize that people are the foundation of successful business.
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So are you working for an organization whose focus is on people first or profit first?
At AGI our goal is to connect GREAT managers to GREAT employers within the restaurant sector. One of our criteria to determine if an employer is GREAT is whether they adopt a people first mentality.
