I recently met with the Managing Director of a company with 200-plus employees and 50-plus crore turnover. There was something strange about the company’s culture. Their performing and non-performing employees were all treated the same! Not for a month or two, but for the last two decades. Functioning this way has its benefits like,
-No pointless competition among employees
-No compensation disparity and hence no grievances
-No anxiety about losing one’s job and
-No employee attrition, whatsoever
But the questions is, is this the right approach? And even if it is, is it a fair one?
Absolutely not. And here’s why.
1. What you reward, MATTERS.
Nurturing average performance culture is ineffective at best and toxic at worst. You may think that you don’t motivate mediocrity. But if you don’t recognize top performances, the culture of average performance, which is mediocrity, is spontaneously nurtured. This environment is very conducive for lethargy, complacency, a perfect comfort zone for a weak personality and a toxic culture for a first-rate performer. To the outside eyes, it might look as if the employees are working hard but in fact, they are not.
2. No competition but endless gossips.
Employees don’t have business conversations, rather get hooked up to un-healthy gossips, resulting in enormous wastage of time and resources. The need for updating themselves with skills, knowledge and intelligence does not exist and hence considered needless. Even the best talent that enters this culture becomes unproductive in no time, and it’s no surprise. Complacency begets Complacency.
3. People idolized, but not for the right reasons.
In cultures such as these, people who are loud, strong and muscled get all the attention; and not the ones who are efficient, well-read and skilled. Insecurity booms in these work cultures, everyone is insecure about each other and the reasons are unreasonable, unnecessary and straight up silly.
Now, do you treat your best employee and your worst (you know there are) the same?
If you do, it wouldn’t take longer for your best to start acting like your worst, because your action implies that different results make no difference to you.
Treat your employees differently.
CEO, Eucto Corporation