The Lincoln Electric Company is a successful business. They boast record profits, have remarkably low employee turnover, and have created an organizational structure that is both researched and respected. The have managed to do these things by focusing on key elements of their business: valuing their employees, having an open door policy, and creating employee ownership.
Lincoln Electric values its employees. They value their opinions and look out for their best interests. Not a lot of companies can say that. Not a lot of companies can say that they have an advisory board made up of workers who meet with executives biweekly to discuss employee matters. Lincoln Electric can. Not a lot of companies can say that they shut down operations four weeks a year for employees to take vacation. Lincoln Electric can. Not a lot of companies can say that they pay their employees very competitive salaries in addition to bonuses, or treat their executives just like all employees, or put their employees’ needs before their shareholders’ needs. Lincoln Electric can.
These are just some of the reasons that Lincoln Electric can boast a virtually nonexistent employee turnover rate. They value their employees and when employees feel valued, it is reflected in their job performance. According to research, fifty percent of employees who do not feel valued in their jobs say that they plan on changing jobs within the year (Spears, 2012). That same research showed that the employees who did feel valued at work had higher levels of satisfaction and were more engaged and motivated to do their best possible work (Spears, 2012). George Willis, former CEO of Lincoln Electric, agrees with this research as he stated that employees are the company’s most valuable asset. Shenhar (1993) agrees with that statement, stating that:
The success of modern organizations depends a great deal on the satisfaction employees derive from their job, and on
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