How Building Value for Employees Builds a More Valuable Business

All business owners know that the key to long term success is for businesses to deliver value to customers and investors. But, have you considered how essential it is to deliver value to your employees, what that value looks like to them and what the impact of that value will be on your business?

Fortunately, we don’t have to figure out how to deliver value to our employees. Zeynep Ton has already done that for us. In her Good Jobs Strategy, Ton laid out the steps we need to execute, discussed in my last blog post. Here’s a recap of her guidelines paraphrased.

1. Concentrate on fewer, higher quality products.
2. Standardize work requirements so that workers can have the freedom to work more efficiently.
3. Train workers in more than one task to reduce fluctuations in workloads.
4. Have more workers on hand instead of fewer, cross training them so that they can be employed full time on regular schedules.

 The point of these guidelines is to create value for employees. To them, a valuable job would have fair pay; a stable schedule; management that is respectful; engaging tasks that are aligned to the worker’s abilities (emotionally and physically) and intellect;, and, I would add, accessibility by reasonable transportation. Structuring a new business in this way or restructuring an existing one, results in a mindset for owners in which employees are viewed as assets instead of expenses. Here’s how these guidelines function when applied in my own business, United Sewing and Design.

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How You Can Change Your Bad Consuming Habits and Not End Up Naked

Shop at a Locally Owned Boutique
Photo by Clark Street Mercantile on Unsplash

If you’ve been paying attention to global trade issues lately, you’ve undoubtedly run across discussions about fair wages also known as a “living wage.” Simply put, a living wage is a close approximation of the amount of money it would cost to support a single person or family in the area in which they live. This well written article, by on racked.com about the apparel giant H&M, discusses why they probably aren’t paying their workers a living wage, what it means to make sure a labor force benefits from good pay and how you can make a difference. Please take the time to read it and visit the great links embedded in there. When the people you’ll read about who make the apparel you buy and wear live with their families on the other side of the world, it’s easy to put them out of your mind. However, your consumption of a $10 t-shirt or $20 pair of pants at H&M, Target, Uniqlo or other importer of apparel manufactured overseas impacts the wages of those workers. Your bad consumption habits are denying them a living wage.

The lack of a living wage and safe working conditions for the workers who manufacture over 90% of the apparel available for us to buy in the U.S. is nothing new. I’ve been covering this issue in my lectures, writing and social media for over a decade. So, let’s skip to the questions I know you’re going to ask, “Why should I care? I can’t change what’s in the store to buy. Isn’t it cheaper to live there anyway? I don’t set the prices. I’m just one person. How can I come up with the solution?” Here’s an answer you can use, with some simple steps you can adopt that aren’t too difficult or too expensive.

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United Sewing and Design: Report on Employment and Environmental Impact 2016-2017

Tote bags with phone pockets and zippered pouches handcrafted for White Horse Style from reclaimed vinyl banners.
Tote bags with phone pockets and zippered pouches handcrafted for White Horse Style from reclaimed vinyl banners.

As part of their compact with the communities they serve, social enterprises publish a report to document their impact in the areas they focus on. As a social enterprise, the two areas that United Sewing and Design focuses on are creating work opportunities for marginalized individuals facing barriers to achieving well paid employment and manufacturing products with materials removed from the waste stream for our line “White Horse Style.” (For a portfolio of White Horse Style products visit this page.) Currently, United Sewing and Design works with independent contractors to manufacture products for individual, corporate and non-profit clients. For a profile on Green Banana Paper Company, one of our clients whose company manufactures accessories from recycled banana fiber, click here. For more info, be sure to check out the helpful links at the bottom.

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Why is My Business, United Sewing and Design, a Social Enterprise?

Social enterprises can support families.
Social enterprises can support families. Photo by kazuend on Unsplash

A common definition of a “social enterprise”(SE) could be, “a profit earning business that has, as its primary goal, creating the maximum positive impact possible in society and/or the environment.

As you can see, from this definition, SE’s are profit making unlike not-for-profits. And, unlike a typical business, their primary goal is not to produce maximum profits for owners and shareholders as in a typical for-profit business, but to create positive change in society and the environment. If you’ve read the “About” page on our website, or my profile on LinkedIn, then you know that United Sewing and Design is an SE.

First, a caveat with my explanation. My business is an LLC and so, is not registered as an SE according to the State of Connecticut. The reason that I chose not to participate in that designation, also known as a “B Corp,” is because in CT, to start a B Corp., you are required to register as an “S,” or “stock corporation,” to sell stock, have shareholders (obviously) and a board of directors. This earns significantly more in fees for the state. Additionally, it also requires a layer of reporting to the public about the social or environmental good created by the SE. My contention is that a business can be labelled by its activities as an SE and participate voluntarily in the public reporting without paying burdensome fees. We’ll see how that works out.

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