People before profits is an expectation rather than a philosophy that the public has. Some business owners find this a difficult concept because they primarily desire profits. However, the irony is that putting people first can actually prove to be profitable for an organization.
A business can begin putting people before profit by creating a mission, or business philosophy, based on the key benefit of the service or product it sells.
An organization is in a business to solve people’s problems and to provide them what they demand. In exchange they pay the organization. Rephrasing it, primary task is determining how the organization is helping people, and then seeking to achieve that particular solution in each transaction. For instance, by selling chocolates the purpose of an organization is to make people happy. By selling accounting services, the purpose of an organization is to provide people with the information they require to take sound decisions. An unhappy customer for whatever reason deserves his money back – no contention on that.
Business that focus on delivering the benefit promised and not profits, will definitely end up with a healthy bottom line.Taking forward, employees have now been regarded as Human Capital. Fun is becoming a signature characteristic attributed to people-centric management; an approach that puts employees ahead of the bottom line. A recent American Management Association study indicated that such workplace culture is less vulnerable to market fluctuations or economic cycles.
Making things fun is essential as proved by financials that organizations can’t provide a premium service and charge accordingly without a happy, motivated employee workforce. People centric organizations take care of their employees, put them before their profits. They have realized that they can’t satisfy customers with employees who are freaked. They cut into profits, but a 3 to 5 percent raise makes a huge difference to the employees and the cost will be realized manifold via loyalty and quality service. People-centric organizations also realize that managers are the most effective leaders in tough times. Management is by way of inclusive decision making and open door policies. They don’t sacrifice training in turbulent times. IT is essential that employees understand and connect with the company’s strategy to their daily activities, while striving for enhanced performance and client retention.
Hence, the market would not dictate an organization’s culture if it puts in effort towards engaging employees, improving culture, and thus, being better prepared for the next crunch.