Will Higher Morale Mean Higher Profit?

Source: CPA Trendlines

A Gallup poll says when employees are “engaged,” profits increase at double the rate of companies whose employees are not so engaged. The poll also says only 29 percent of employees are engaged.

Sixty-five percent of CPAs in a survey by Bay Street Group say their colleagues are “committed and motivated.” One person reported that the firm regularly gives employees new high-level responsibilities and compensates them based on their performance.

Here are some comments by the other 35 percent of respondents:

• When new clients are brought in, staff complains even though they have time.
• One accountant reports its staff is not productive and has low morale.
• In one firm, a CPA reported that people are not motivated because the management style is autocratic.

The authors’ conclusion from the survey is that employees in general become engaged because of the character of the firm, not because of their inherent personal qualities.

For the complete article, click here and see Can Morale Drive Profit? (October 29, 2007).

From CPA Trendlines, http://www.telberg.com/telbergblog/, October 29, 2007, Bay Street Group LLC, Dobbs Ferry, NY.