People first, profits follow.

The connection between business performance and employee morale is far from casual. For disbelievers, North American Tool and Die Inc. is a fine example.

After change in ownership and management style, in just three short years the firm tripled sales and profits increased sixfold. Staff turnover

As small to medium-size business owners, we face a conflict. Our personal styles have led us to be independent. Believing no one can do it better than we can, we shudder at the thought of giving up control. But delegate we must and, in so doing, become managers of men and women.

Most management problems are really people problems, not production problems. Communication skills arc the cornerstone of good labor relations. To improve the way we manage, our attitude must be congruent with our values.

The conviction that people make the difference between success and failure influences company philosophy and decisions. How do we achieve optimum levels for our team and bolster the bottom line? It helps to understand what really motivates employees-the real issues, not what we think they may be.

In a recent report comprising 12 studies and 1,685 personnel, results clearly indicate factors creating job satisfaction greatly differ from those generating dissatisfaction. One erroneous business assumption has been that if the work week were reduced, wages increased and benefits expanded, we would find our employees miraculously motivated.

The six major contributors to job satisfaction and motivation are achievement, recognition, the work itself, responsibility, advancement and growth. Elements causing dissatisfaction include company policy and administration, supervision, interpersonal relationships, working conditions, salary, status and security.

A job problem solved does not automatically inspire motivation. All that has been accomplished is a lowering of the dissatisfaction level. We have not yet motivated workers to higher productivity.

Development of motivated, productive employees requires an atmosphere of complete trust between owners or management and staff. One admonition: You must be committed to developing trust and be prepared to work at improving relations every day, in every situation. Otherwise, employees will sense the deception and all will be for naught. The unfortunate fact is that the majority of businesses give only lip service to the concept of "people first."

Let's look at the bigger picture. Suppose you are seated in a fully loaded plane with capable pilots in the cockpit when over the loudspeaker comes this announcement: "This is your captain speaking. Thank you for flying with us today. We have 10 hours of flying time ahead of us and hope we will be close to a major airport at that time, as there is no set destination for this flight." Would your confidence level be reduced? Would you be impressed by their professionalism? Would this scenario create anxiety and stress? You would not accept such a situation in reality, but many enterprises are busy flying around with no destination in mind. People are uncomfortable if they don't know where they are going; they work best with a sense of direction and purpose.

To create the greatest impact in your new business culture, first clarify your organization's beliefs, values and ethics; establish a corporate philosophy, a mission statement and, finally, a goal statement. Ensure consensus exists during the process. Recently, owners of a major company arbitrarily posted a new mission statement throughout the organization. Management did not feel the owners' statements reflected corporate reality, and no one practiced any of the principles. Is it any wonder this company lost over one million dollars in the last two years? Clearly, senior management and owners must believe in the changes or the desired growth is doomed for failure.

Once your business has determined its direction, conduct a company-wide survey to center on the issues specifically facing your firm and staff. Many consulting and training companies have wares to sell, but will they fit your employees' needs? I was asked to do a personncl development series with the new crew of one of our clients. When I asked my customer what areas needed focus, there was no clear response. Starting the series off with a needs assessment, which included all team members, the staff accepted the program much more freely, allowing the content to be custom designed to reflect their requirements.

Two elements affect the basic makeup of an establishment's employee group-, one is the selection of the individuals that you hire. The other is the way employees are treated after they are hired. In the October issue of Doors and Hardware, I outlined the Comprehensive Personnel System, a program for selecting and developing exceptional employees. The approach focuses on two separate areas: selection and development.

The importance of hiring the right people cannot be overemphasized. The cliche that you cannot make a square block fit a round hole is especially true for staff selection. This means taking the time to establish a hiring methodology.

Before a person is hired, document the following information:

* A written job description, including work style preferred

* An applicant-screening technique, including questions for the interview as well as job fit and past employers' comments

* Questions that will be given to the applicant before the interview so he or she will be prepared to answer your concerns more fully; this also reduces anxiety for both parties

* Expectations on performance criteria and the way that performance will be monitored and tracked.

This extended appraisal and interviewing procedure takes time, but the results arc well worth it.

Focus on the development of the current team by inereasing job satisfaction and productivity. Do some research. Countless books have been written on the subject of enhancing employee performance.

As a person is being selected to work with a company, expectations and standards of conduct ought to be discussed. This conversation should include the future work relationship and opportunities the organization can offer the individual as well as what the employee needs in order to stay interested and personally motivated. Many times, we have the right people in our company in the wrong jobs, and as a result, they do not progress in their positions and as individuals.

One of the weakest areas in employee development and job satisfaction is the performance review. Participants may experience fear and trepidation when faced with a critique of job standing. But this is an excellent time to communicate met and unmet expectations by both management and staff.

To lower the anxiety level for employees, have them write their responses to the performance review questions prior to a formal meeting. It is important that two-way, supportive communication takes place and that the interview is seen as an evaluation of how well the employee performed as well as how the employee can improve in certain areas. The participative approach builds your team and instills that desired atmosphere of trust. Once a personnel system and routine has been formulated, most of your work is done.

Do you have company gossip? It can be a result of the inability of staff to vent frustrations to decision makers. Adopting an attitude of no blame and granting the right to fail without facing the firing squad sanctions open disclosure. If people are inhibited by the fear of failure, they won't dare to try. And if they don't try the unexplored and the untested, your corporate growth rate, innovation and profitability levels are going to suffer.

Ohio Bell has implemented a program called Three on Three. The senior vice president meets with each individual in the company twice a year and asks two simple but valuable questions: What three things do we do that you appreciate and would like to see more of? And, what three things do we do that you dislike and would like to sec less of? Requiring a commitment by owners to address challenges, this procedure is a vehicle staff can use to be involved in the strengthening of the enterprise.

Because achievement and recognition are the top two motivators for staff, this area must not be overlooked. Instituting programs of recognition for jobs well done is essential. Rewards for achievement include trips, dinner or tickets to the next professional ballgame.

Every month, hold a company-wide (or division-wide) meeting--on house time. Recognize one or more employees who have done a super job during that month. Have a plaque engraved with the employees' names, and display it in the work area. Bring the personnel up to date on the direction of the organization; inform them about your current business performance. Every time a customer makes a compliment, tell everyone in detail at one of those meetings. Compliments don't cost a thing, and we all appreciate them.

In addition to handing out compliments, work at trying to promote your employees' best interests. Does that sound obtuse in today's cynical work environment? Look at the workers' jobs from their perspective: Would you enjoy working with you as the boss? A friend of mine admitted that he would quit before he would do that.

Leading companies now invest I percent to 3 percent of their gross sales back into employee education. (Some might even consider that figure low.) The training of labor, now called adult learning, is a continuous process requiring a great deal of time and patience.

The varied aspects of human resources may sometimes appear impossible to administer. How do you cat an elephant? One bite at a time. The unfolding of personnel development should be the same; divide any situation into smaller parts and accomplish a little at a time.

Studies reveal that seven out of 10 workers dislike their jobs. What would happen if a business reversed these statistics? If work meant achievement, recognition and fun for your staff, would they accomplish more?

Both leadership and employees do care a great deal, and yet, misunderstandings exist and continue to plague companies across North America. If you can tap this well of concern and connect it with the goals of your corporation, the results will truly astound you.

The implementation of a company-wide personnel development formula can no longer be avoided. The traditional adversary role between management and employees is not productive. Expertise is available to help you gain knowledge and technology to realize top performance from your team. Choose to utilize that experience. Your long-term economic survival depends on it.

Ken Keis is a professional speaker and the vice president of marketing for The Consulting Resource Group, Abbotsford, British Columbia, and Sumas, Washington (6041852-0566).