ABSTRACT
This chapter is based on research conducted in Australia which offers a compelling business case for the importance of employee dialogue. The research involved two empirical studies conducted six years apart, showing that the quality of an organisation’s relationships with its employees makes a bigger contribution to financial performance than that of any other primary stakeholder group. In short, employee orientation is worth more to the corporate bottom line than orientation towards customers, communities, suppliers or shareholders. The first study measured the extent to which organisations engage in genuine dialogue with their employees. This means far more than mere two-way communication. Real dialogue emphasises listening rather than talking, having ‘positive regard’ for the other person, and a willingness to change one’s own position. The results were reinforced by a second study which investigated a similar concept entitled ‘employee concern’. This evaluated tangible managerial behaviours and attitudes indicative of the presence of genuine dialogue.
