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Adopt a people-oriented focus to increase employee contribution

Here’s some powerful research by McKinsey & Company to use with your business leaders to make the case for investing in the conditions that help people to make a stronger contribution.

McKinsey P+P winners article image

I’ve picked out a few quotes – you’ll agree it’s worth it. The ‘P+P Winners’ here are those who make smart investments in BOTH Performance and People:

‘P+P Winners achieve roughly 30 percent higher revenue growth than both Performance-Driven and People-Focused Companies for every dollar they invest in human and organizational capital.’

‘By contrast, Performance-Driven Companies generate higher return on R&D and sales and marketing investment—but they have the potential to boost their overall results even further by making their investments in people and workplace systems more effective.’

‘Corporate leaders need a deeper focus on the nuances of organizational capital. Human capital is not merely a labor input; people are any company’s core asset. The workplace should work for employees, with coaching to help them develop, structures for support, and workflows that remove frustrations.’

This kind of credible data is going to be useful to you when you’re making the case to your senior leaders for some L&D, engagement survey, or cultural change:

‘Remaking organizational culture is a difficult, ongoing commitment that requires energy, self-reflection, and a willingness to change familiar patterns.’

‘But companies that adopt a more people-oriented focus along with a more challenging and empowering organizational culture have a lot to gain. In addition to boosting financial returns, they can improve their consistency, resilience, talent retention, employee loyalty, and reputation—and these are the hallmarks of companies that thrive over the long term.’

HR’s work still has to focus on the Performance part first.

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