Cincinnati executive puts "return on involvement" front and center
Val Prevish |
Thursday, April 21, 2011
Want to attract top young talent these days? Offer them more than just an opportunity to make money.
Executive and business consultant Chuck Proudfit tells clients that 20-somethings today are not satisfied with the old status quo of going to work just to make a living. They want to feel they are making a difference too.
Companies that embrace this idea will see the best qualified candidates flocking to their doors, and will also see a difference in employee loyalty and even in return on investment (ROI). He likes to call this concept "return on involvement."
Proudfit owns SkillSource, a consultancy firm based in Blue Ash near Cincinnati. He also operates a non-profit faith-at-work ministry, At Work on Purpose, that allows businesses to measure their philanthropic efforts by the effect they have on their communities.
"There aren't enough qualified people out there for the jobs that exist," says Proudfit. "What tools do you have to recruit top talent? This is one of the best tools you can use."
Simply, return on involvement means that a company measures its effectiveness based on making a difference in people's lives, not just through its products, but through its actions. Businesses that adopt this strategy see more motivated employees who feel more engaged at work and thus are more productive, he says.
Some multi-national companies that have adopted similar programs include Procter & Gamble with its Pur water purifier that allows people in developing countries to have clean drinking water, and LensCrafters, which collects old prescription eyeglasses and ships them to underdeveloped countries where access to eye care is almost nonexistent.
"Making money and making a difference are not contradictory," says Proudfit, noting that both P&G and LensCrafters attract top young talent to their ranks. "Companies that embrace this are going to see results."
Smaller businesses can do much the same thing with their resources. The best programs include efforts that generate a positive return for customers, employees, investors, contractors, suppliers, competitors and the community at large, he says.
In other words, it's a win-win situation for all involved.
One company Proudfit worked with to make these changes is Monroe Mechanical, a heating and cooling contractor. The company owner, Will Housh, invested in crosstraining for his employees that allowed them to be flexible in their work arrangements and gave them greater job security. He also encouraged them to donate $100,000 worth of company time and resources to charity by the end of 2012.
"More than 80 percent of U.S. workers report feeling disengaged from their workplace," says Proudfit. "Corporate America is behind in applying strategies that include purpose making.
"The younger generations approach things differently," he says. "While their parents might have been satisfied with just making a good living, young people are motivated by seeing meaning in their work. People in their 20s and 30s are seeking out companies that employ concepts like return on involvement."
Younger workers today are often described as being just as interested in the journey as they are in the destination. They don't just want to know there is a career path, they want to find rewards and enrichment along that path. More than half of workers in their 20s prefer to be employed at companies that provide volunteer opportunities, according to a recent survey by consulting firm Deloitte.
"This is a trend in our society, and it's the way of the future for business," says Proudfit. "In this new world it's not enough to say I have a great product that makes money. You have to have a bigger purpose too."
As government budgets continue to shrink, Proudfit says this type of corporate philanthropy will become more important. Businesses can often tackle projects in a much more efficient manner than a government agency, he adds.
"When you get some lean-minded business leaders to take on a local charitable need, they can do some amazing things. Often much more effectively than government."
The recession has been tough on business owners and their employees, says Proudfit. Ideas such as return on involvement can relieve some of the stress by giving workers a chance to do something helpful for their community and each other.
"As a country, the last few years have been anything but fun. We live in a stressful world. This idea is filled with hope, though. Organizations that help others make this a better world, and it gives me real hope and encouragement."