?? "Good Jobs Strategy": How the Smartest Companies Invest in Employees to Lower Costs and Boost Profits, by MIT Professor Zeynep Ton

I'm thrilled to share that I am now a graduate of the 美国麻省理工学院 - 斯隆管理学院 Advanced Management Program. The learning journey has been genuinely transformational, and I will share more details soon. However, I couldn't wait to reveal what has been one of the most impactful lecture of the Program: "Good Jobs Strategy," led by Professor Zeynep Ton . ??

The so-called “Good Jobs Strategy” concept is grounded in successful research across various organizations.

The central premise is that the continual enhancement of customer value is at the core of any competitive edge. In sectors focused on service, this value is often fostered by frontline staff like sales assistants and call center agents. It's evident that these teams must be very strong, both proficient and motivated to deliver this continual value. As such, their payroll should not be considered merely another expense to be streamlined. Instead, it should be seen as a definite competitive advantage and treated accordingly: paid more than the market. In this context, why is payroll viewed as a cost that needs perpetual optimization? Why do leaders believe they cannot create such a well-paid and strong frontline team?

Primarily, leaders underestimate the direct and indirect costs for the company of underinvesting in strong front line teams. Let's delve deeper into her rationale.

Considering direct costs, if a company pays the bare minimum, the risk of employee turnover increases. This leads to higher costs associated with hiring, onboarding, and training. Moreover, the time taken to reach full productivity is extended. These costs can amount to up to 45% of the total payroll cost.

Even more detrimental are the indirect costs of poor operational execution due to a lack of investment in people. The continuous loss of knowledge and lack of expertise lead to errors, which are often visible to customers. This results in a bad customer experience and a reluctance to return, leading to lost sales and higher acquisition costs, and ultimately, lower profits. ??

Pay isn't everything, but the absence of adequate pay guarantees negative consequences for the organization. To avoid the cycle of low pay, high turnover, poor operational execution, and low performance, top-notch companies are adopting the so-called 'Good Jobs Strategy' approach.

Shifting our mindset to paying above the market rate doesn't equate to being soft or paternalistic with our employees. On the contrary, it enables us to be less tolerant of low performance. Indeed, it helps us cultivate a high-performing organization. ??

I was impressed by her provocative model and deeply inspired by her final words that remind me why I'm still playing the game: "Management can be the most noble profession in the world. You can go home and tell your family that today you made some people happy."

Thank you, Professor Zeynep Ton , for your inspiration and your captivating lecture, both in style and substance. You are unique.

I invite you to read her new book: "The Case for Good Jobs,"?a leadership guide for choosing excellence and providing good jobs that offer a living wage, dignity, and opportunities for growth. Let's start today to make a difference. ??