Operational Excellence Remains Elusive in US Companies

Employers and employees 'agree to disagree' in Randstad survey

While American businesses have been engaged in hot pursuit of operational excellence for the last several years, a new survey conducted by global staffing firm Randstad clearly indicates most companies, both large and small, have yet to hit that coveted target.

In its 2005 Employee Review, Randstad -- in partnership with Harris Interactive -- talked to more than 3,000 employers and employees around the country this summer. And while respondents from both groups said they valued operational excellence as a key measure of business success, their views differed significantly on the factors that determine what defines operational excellence.

Both groups agreed that two primary strategies support companies in their quest to be the best: improving customer service and reducing costs. And there the differences began, with employers valuing customer service over cost and employees ranking cost over service. "This gap highlights an opportunity for employers to team up with employees to integrate these two strategies to strengthen the company's brand," said Stef Witteveen, Chief Executive Officer of Randstad's US operations.

"The survey also indicated that employees look to their employers for strong leadership and the ability to put the right people with the right skills to work," Witteveen added. "These traits have a huge impact on employee morale and turnover -- the softer side of the workplace."

Both groups find agreement, though, when asked if they believe their organization can actually achieve operational excellence. While 75 percent of employees and a whopping 87 percent of employers agree operational excellence is an important goal, only 32 percent of employees and 44 percent of employers actually believe their own company has the ability to achieve that elusive goal.

What's Stopping Them?

Both employees and employers clearly signal that 'lack of strong leadership' is the primary barrier to turning their organization into a stellar performer, while the employee group rates 'poor communication from top management' a close second. Employers believe they are leading by example and holding employees accountable for their work, yet results from the employees indicate otherwise; only 55 percent of employees say their managers set an example or practice accountability with 52 percent saying their employers promote an atmosphere of openness and trust.

Morale hits a new low

As a result, for the first time since Randstad began tracking employment trends with its first Employee Review in 1999, survey data around employee morale dropped significantly this year, after holding steady for the last five years. In Randstad's 2004 survey, 70 percent of employers said morale at their company was 'good' to 'excellent,' yet this year, only 55 percent gave the same rating. The good news in this drop is the suggestion that employers are finally taking a more 'real world' view of their workforce. Yet the gap in communication and leadership at many organizations indicates there is still a fair amount of ground to be covered to achieve peace, harmony and operational excellence in the American workplace. Employees are working hard and consider themselves committed to their jobs, yet they have reservations about their company's goals and leadership. Many say they are loyal to the company but do not believe that loyalty is reciprocal. And, in an uncertain economy, many fear for their job's security.

The silver lining

Employees and employers do agree on how operational excellence can become more than corporate lingo:

• Strong leadership builds trust and morale
• Employing the right people with the right skills ensures high job performance and job commitment
• High morale and low turnover are stimulated by strong employee programs and effective communications

The 2005 Randstad Employee Review, a 40-page summary of the survey's results, also includes data around the respondents' view of the state of Social Security in this country. For more information, or to obtain a copy of the Randstad 2005 Employee Review, contact Public Relations at 770.303.6756 or via email at: public.relations@us.randstad.com.

About Randstad's Executive Office support team:

Randstad's expertise in Executive Office recruiting covers a wide range of positions. We're specialists at matching your company with the qualified, reliable help you need to do jobs like these: • Executive assistant • Administrative assistant • Office manager • Legal assistant

We understand you operate in a demanding and time-sensitive environment. Randstad offers temporary placement, temporary-to-hire and permanent placements, and we work close with you to determine which service alternative best suits your needs. You'll be assigned a two-member team of dedicated agents to service your account. Highly trained and qualified professionals, they work together on your project, handling both client sales and talent placement -- and that's unique in the staffing industry. For more information, or to talk with a Randstad Executive Office specialist near you, call 1.877.922.2468.

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About Randstad North America:

Headquartered in Atlanta, Ga., Randstad North America is a wholly owned subsidiary of Randstad Holding nv, a $7.1 billion global provider of professional employment services and the fourth largest staffing organization in the world. In 2004, Randstad North America’s 2,190 staffing professionals put 48,500 people to work in the U.S. and Canada each week through our 455 branches and client-dedicated locations.