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Why You’re Hurting Your Bottom Line If You Only Care About the Bottom Line

Fixating unhealthily on profits could backfire, but there is a better way

Source | www.entrepreneur.com | John Boitnott

In business, the bottom line matters most. There’s no way around it; you need to make money to stay afloat, and so it feels natural to manage employees with money in mind. This may be doing more harm than good, however. According to research from Baylor University, entrepreneurs or supervisors who use a “bottom-line mentality” (BLM) were less effective. They often lost  and respect. 

The researchers surveyed 866 people, half of them employees and the other half their supervisors, and found that high-BLM supervisors tended to create low-quality relationships with staff members. Workers could feel their supervisors were focused on the bottom line rather than on effectively managing them as individuals. In turn, team members became disengaged and withheld strong performances. It turns out that a bottom-line mentality can actually hurt your bottom line. 

If you’re stuck in a BLM rut, it’s time to find a better way. Here’s how.

Related: Your Distractions Are Killing You — and Your Bottom Line

Be careful with messaging.

If you’re having a booming second quarter and want to share those results with employees, that’s great. But if your company-wide meetings revolve around profit and loss in the form of graphs, pie charts and dollars and cents, you might be going too far. 

When you frame everything around the bottom line, it’s easy for employees to feel expendable or that they’re just a cog in a machine to make you, and the company, more money. Instead, focus at least somewhat on employee performance around client relations, productivity and creativity. If you highlight only the bottom line in your messaging, it becomes clear you value profit over all else. That includes putting money above , and worse yet,  in the workplace.

Treat employees like people, not numbers. That starts with messaging.

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Source
www.entrepreneur.com
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