Employees

Employees need several kinds of satisfactions if they are to remain productive and enthusiastic in industry. They need to know that their working conditions are safe and adequate for the kind of work they do. Also, they need reasonable hours of work in order to make their jobs acceptable. If they must work overtime several nights a week, their take-home pay may be higher, but their efficiency and feelings about their jobs will decline.

In addition to agreeable working conditions, employees need to have adequate compensation for the work they do. Today potential employees also examine the benefits package management offers to compare them with other companies. If one company offers stocks, insurance, vacations, and even child care, other industries must follow suit, or they will lose out on hiring the best employees.

Adequacy of working conditions and financial compensation are hardly enough, however, to keep employees satisfied for long. Employees also need to feel confident of management's abilities to organize the company. The employer who pays well and has a new modern plant to display their products may still lose the loyalty and devotion of employees through lack of attention to details and disorganization. One recent research study showed that more than half the small businesses failed not due to lack of money but to the employer's lack of management skill.