RAZOR-SHARP ALIGNMENT OF YOUR PEOPLE AND YOUR VALUES
While nearly every business has felt the effects of COVID-19, some industries—such as hospitality, hotel and travel— have really taken a hit. The shutting down and reopening of businesses across the country have given business owners the opportunity to take a close look at their people and their core values—and focus on a razor-sharp realignment of both.
The Importance of Values
Companies have a better chance of getting through a crisis if they have well documented, well written core values that are lived by all members of the organization each and every day (If you don’t have them yet, now is the time to define what they are!).
This pandemic has acted as a litmus test for the strengths and vulnerabilities of an organization, its people and its culture. We got to see, good or bad, how people reacted in the midst of stress and uncertainty. For many companies, it exposed the truth about whether they had the right people in the right seats. Or if their values and culture were as strong as they always thought they were.
Availability of People
The labor market was extremely strong going into the COVID-19 crisis. In fact, the biggest economic problem we had was full employment in this country. Employers in the “less affected” industries may not be seeing as much disruption in the labor market. The government’s PPP plan incentivized business owners not to reduce compensation, so many business owners didn’t. Those that did reduce compensation have since restored it. Companies won’t have a pool of unemployed people (or people who received pay cuts) to recruit from.
Employees in these industries may not necessarily be looking for jobs elsewhere, but they are probably revisiting their employment situations and resetting their life goals if needed. The fact that they are not leaving their current company reinforces the fact that while compensation is a piece of why people work for a company, it’s not the whole piece. Culture, company values and the quality of coworkers are important too. Oftentimes these items are more important than money.
A Word About Compensation
It is important that your team members’ compensation packages are in line with where you want the company to go. Compensation should not be based solely on meeting an industry standard, an arbitrary number, or a Hail Mary offer required to get them away from their current employer.
Going forward, employers will experience a natural reconciliation of their people and their values. They will be assuring that their current and future employees are aligned with the company’s core values and where it wants to go in the future.