Managing Change

On the back of data showing small-business owners are growing more pessimistic about their prospects amid continued economic uncertainty, a separate survey shows a majority of employees point to outdated management structures as the main reason for the struggle.

“American workers seem to have an intuitive sense that companies would do better if they were to shift their focus to empowering employees to solve customer problems," says Vineet Nayar, CEO of HCL Technologies, a global IT services companies based in India, which commissioned the survey.

The results highlight an important disconnect. Of the 704 respondents, 60 percent indicated that management considers customers the most valued group, followed by management itself at 20 percent, with employees coming in third at 15 percent value. And while no business would last long without clients and customer service, employees further say that it's them—rather than higher ups—who drive quality interactions with a company's customer base.

The key to more successful transactions lies in better leveraging internal talent, the survey finds. When employees feel appreciated, they're more willing to go above and beyond, not just for the client, but also for the company. And in these times of fierce competition and short customer money, many companies win or lose business based on how happy, motivated, and engaged their staff is.

That's especially true for younger workers, who may comply with management's mandates for now, but will be the first to seek out better opportunities once hiring picks up. More than a quarter of those surveyed who were 29-years-old or younger, said they're not committed to staying with their companies. Some common reasons for their ambivalence include feeling ignored when they bubble a problem up the ladder—59 percent of workers say they often see problems at their companies that management is not aware of, and one fifth of respondents say their supervisors say they'll address an issue, only to dismiss it.

“Leaders must recognize, particularly in the era of social media and the democratization it brings to all dimensions of society, that the key to success and growth is getting employees to tell you what’s really going on–to identify the elephants in the room that no one was willing to acknowledge," says Nayar. "The key to doing that is making employees believe that you, as a manger, are willing to listen and take action."