The Power of Listening to Frontline Employees

Listening to employees

Image credit: DALL-E2

One of the most remarkable organizational turnarounds recently is Adidas’ journey from a $794 million loss in the 4th quarter of 2022 to its current trajectory towards profitability this year. A pivotal move by Adidas’ CEO Bjørn Gulden in spearheading this transformation was giving out his cell phone number to all employees. He emphasized the necessity of direct access to management, encouraging employees to alert him if anything was amiss.

Often, executives overlook the input of their employees, relying instead on plans crafted by senior management or guided by external consultant reports. However, no one understands a company’s challenges better than its frontline workers, who face these issues daily. Frequently, these employees not only identify problems but also envision potential solutions, but their input goes unheard. Sometimes they are brushed off and sometimes this is due to their own reluctance to speak up.

When employees are empowered to express their concerns and propose solutions, management gains invaluable insights. Moreover, employee motivation and employee engagement soar. They feel valued and recognized, and if they contribute to the solution, they are even more driven to implement it.

Providing employees with the CEO’s contact number is just one way to foster feedback and engage them in the company’s transformation. When Hubert Joly assumed leadership at Best Buy, he started his tenure by immersing himself for a week with associates at a store in St. Cloud, Minnesota. When Carlos Ghosn took the reins at Nissan, he established cross-functional teams of middle managers. These teams, credible to both employees and executives, were tasked with recommending solutions to the company’s problems. Both Joly and Ghosn led their companies from significant losses to growth and success.

Personally, I’ve always liked  ‘walking the corridors’ and initiating discussions with employees I encounter. During COVID, when this wasn’t feasible, I held regular skip-level meetings and more frequent townhalls..

The specific method a leader uses to engage with employees of all levels is less critical. What’s crucial is that leaders make themselves approachable, actively seek to listen to their staff, and involve them in problem-solving . The rewards will be better company performance, and higher employee engagement.