The evidence suggests that in only about half of the cases do firms even attempt to evaluate the effects of having outside contractors or part-time help. And, in virtually all of those instances, the sole metric of evaluation is direct labor costs. The question, however, should not be what labor costs on an hourly basis, but what value it can add to the organization when properly trained, empowered, and committed employees deliver outstanding performance. Meanwhile, evidence from other studies is both provocative and increasingly conclusive. Perhaps the barrier is that putting people first really requires a fundamental shift in how leaders think about their job.
Courage is, unfortunately, in very short supply today.
Firms that have leaders with courage, who can and do put people first, will prosper. The others will be left in the dust. Journey with The Anatomy of Fire and Modern Management Hits Oz. . . . Jeffrey Pfeffer is Thomas D. Dee Professor of Organizational Behavior at Stanford Business School. Pfeffer has consulted to many corporations and given executive seminars in 21 countries.