I admit up front that my argument in this post is somewhat circuitous. So here is my summary conclusion from articles I sight herein: the best companies attract the best (e.g., most skilled, highly educated, and nicest) workers. Civil, polite and nice people are more likely to make more effective leaders. If skilled people are such a business advantage (and the best companies know they are), then invest in and grow the talent you have.
Recent research is uncovering that much of the income inequality that is happening in our economy is due to “a gap in wages between companies, not within them.” And, “more productive, higher paying companies are hiring better workers.” ("Corporate Inequality is the Defining Fact of Business Today", HBR, May 2015).
In the article Nicholas Bloom, a professor at Stanford’s business school, comments, “Back in the 1980s, college graduates and low-skilled people would be in every firm. Today, much like our neighborhoods, companies seem to be more segregated by education and skill.” Dr. Bloom goes on to say that this seems to be happening for soft skills as well, “Nice, fun, polite people are sorting into some firms,” and jerks (I can’t use the word he uses) "are sorting into others.”
From a macro-economic, and “health of our society” standpoint, this research is worrisome. The data confirms another advantage of a more privileged background: better and higher paying jobs in the best companies. Thankfully, other research on the impact of what I consider to be “healthier”, more skillful leadership traits and the neuroplasticity of our brain confirms that we can change and learn new behaviors throughout our lives, regardless of where we start or where we work. From my experience, we can even learn to be nicer.
Studies by Christine Porath, Alexandra Gerbasi and Sebatian Schorch at the Grenoble École de Management, have shown that, “behavior involving politeness and regard for others in the workplace pays off.” At a biotechnology company, a study confirmed “those seen as civil were twice as likely to be viewed as leaders.” (“No Time to Be Nice at Work”, New York Times, June 19, 2015).
Morgan W. McCall Jr., and Michael Lombardo and others found from their research while at the Center for Creative Leadership, that “no. 1 characteristic associated with an executive’s failure is an insensitive, abrasive or bullying style.” (“Is Your Boss Mean?” The New York Times, June 21, 2015)
So if successful companies hire more skillful and nicer employees, they must see a return on their investment. Higher skilled employees, and this includes healthier, more polite and caring leaders clearly have a big impact on the success of your enterprise. If you can’t immediately attract or afford to hire the “best” leaders and employees, develop the ones you have.
Welcome to Moira's blog. I write a (mostly) monthly post about the work of building better work places: people strategies, systems, teams and leaders.