Should CEOs Put People Above Profits?

By Cheryl L. Mason, J.D.

Every organization from corporations to education to nonprofits and everything in between is about results and outcomes. But there is one vital resource that every organization must have to deliver these outcomes and results – employees aka people. Even with the best most current technology, people are necessary.  Employees are not only an organization’s most valuable resource but also their most important asset. 

Employees have experience, information, facts, data, metrics, history, usually much more than any leader realizes. And, these employees can often influence others’ perceptions.

When companies focus on profits over people and announce layoffs and restructuring, a message is sent to employees and customers. That message is that results are more important than people, that employees are just cogs in the wheel to deliver outcomes. This conventional leadership thinking has existed since the Industrial Revolution, and it must change.

In our current environment, this message is no longer well received. Questions and concerns arise around whether the leadership of the organization assessed the consequences and impact to their employees and families, their community, and their reputation.  Employees and customers want to know if processes and procedures were studied to determine improvement in practices while retaining the knowledgeable talent of people.

When companies and organizations focus on profits and outcomes over employees, they break the trust with employees and customers alike. And what happens if the company rebounds and needs employees?  Those experienced knowledgeable employees will likely not return and new employees will be hesitant because of the company’s actions. Trust and reputation are hard to rebuild

While innovation and streamlined processes and procedures can improve operations, experienced employees are pivotal.  I experienced this as a chief executive. When I took over, the organization was at rock bottom – morale, results, trusts, and retention were all dropping deeper. The people of the organization were the key to transformation.  Did we need innovation, streamlined processes and procedures, investment of tech and dollars?  Yep. Did we have them? Not in the classic definition, but taping into the creativity, experience, and agility of the employees uncovered ideas that when implemented – delivered and improved results.  Rather than laying off people, we were so successful, I had to hire 200 more!

People want and need to matter, and they want to work for and support organizations that treat people like human beings.  When you do so, you may find the only restructure you need is how to hire more people quicker.