How Treating Employees Well Impacts Profits and Sales Research Paper

How Treating Employees Well Impacts Profits and Sales - Research Paper Example In light of this, this paper will investigate the rationale behind treating employees well to benefit an organization. Although there are several other factors to consider for an organization to maximize profits, people responsible for the management of organizational matters hold the highest value in moving towards the fulfillment of organizational goals. The rationale for Treating Employees Well There are several reasons stating why better treatment of employees results in improving job performances, as well as in maximizing profits and sales. In fact, a study conducted by Leblebici (2012) on the impact of workplace quality on employee productivity documented that an organization that treats employees well tends to have a creative workforce that not only contributes to the formation of strong organizational culture but also produces top results. For example, if managers of a company develop and implement an attractive compensation plan for employees, the result will be very positiv e for the company as employees will tend to work hard to achieve rewards and benefits included in the compensation plan. This will result in improved employee productivity, as well as increased sales and profits for the company. While talking about the reasons that make positive employee treatment productive for the achievement of organizational goals and objectives, let us talk about employee satisfaction which is one of the main factors having links with positive employee treatment and improved organizational performance. It is a fact that every employee wants to in an organization that understands the needs of employees and take effective measures to meet those needs. The level of employee productivity is usually high in organizations which respect the needs of employees and provide them with safe and flexible workplace environment. Employees highly contribute to the development of the organization as long as they feel satisfaction with the workplace environment provided to them by their managers (Leblebici, 2012). For example, in organizations where employee safety and benefits are considered critical for the development of organization, the level of employee performance goes high because employees become able to concentrate more towards work instead of worrying about their professional life and safety. Treating employees well not only increases organizational performance in terms of increased sales and profits but also draws more employees into an organization. For example, an organization that treats its employees well stands a chance of creating an organizational culture that creates a good picture of the organization. When this happens, employees and other stakeholders spread the word, and this encourages other potential employees to apply for positions available within the organization. It is a fact that employees do not like to work for an organization that has poor of its culture because of improper employee treatment, such as, lack of compensation plans and job insecurity (Leblebici, 2012). Employees do not apply for jobs within such organizations and try their luck with the organizations that are known for their employee friendly culture.