The Benefits of Equity

Although equity is typically not the main focus of most executive leaders, evidence suggests that it should be as its benefits are many. 

Increase Employee Engagement

The greatest asset to any organization is their people. When employees perceive equity, they are more likely to stay and contribute in a meaningful way. The benefits are numerous. From a cost perspective, organizations that keep their employees save on all the associated costs with recruiting, hiring, onboarding, and training. From a growth perspective, the more employees perceive equity, the more “inputs” they will be willing to provide. These inputs include time, hard work, and experience. With the right systems in place, these inputs can be converted into continuous improvement. 

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Increase Client Satisfaction

Happy employees translate into happy customers. When organizations leverage their talent to continuously improve, customers are the benefactors of better products/services delivered more quickly and at a cheaper cost. As a result, satisfied customers become repeat customers and share their positive experience with those in their social sphere of influence, which is growing larger for each individual with the presence of social media. 

 

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Improved Results

The benefits of equity go way beyond what most consider to be “soft.” In fact, evidence would suggest that organizations can increase their average profit growth by 33%. Organizations that design equity into the workplace and harness the power of their people into continuous improvement are able to work smarter than the competition, which translates into superior results. There results, in turn, allow an organization to create even more equity in the form of job security, financial rewards, and a sense of achievement that comes from working at a reputable organization, i.e. “outputs” in equity theory. 

 

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