A Compelling Place to Work in Action: Growing Beechworth
Tom O'Toole has grown his business from $100,000 to more than $3 million by creating a compelling place to work. He has grown from a staff of 2 to more than 100 and his business has won National and State Marketing, Business and Tourism awards. Tom is an example of how employees can have a huge impact on profit.
Tom O'Toole was initially an angry boss who lived by the philosophy that the angrier and louder you yelled at your staff, the more compliant they would be.
Things started to change when Tom realised there was a better way to run a business. Tom began treating his employees with respect. He listened to them, he began to trust them and empower them. "One of the hardest things to do in business is to let go," says Tom.
Over time, the bakery staff began to enjoy their workday. And, as Tom listened to feedback from employees and customers, he was able to improve and build his business.
Over the next 15 years Tom's business grew. His business became not just a bakery but also a tourist attraction, and his business model has been emulated around the world. He listened to feedback from his customers and employees. Customers asked for seating, so Tom bought the shop next door and filled it with seats. He hired a jazz band to play on Sundays. He put in a playpen for toddlers. He let his staff bring their kids in after school. He sent his staff to training courses. He encouraged his staff to set goals.
And, it continues to grow. The bakery has recently opened at a second site in Echuca. Employees and customers are regularly invited to give feedback, and the bakery invests $100,000 annually in staff training.
Tom says, "People say what if you train them and they leave? But, what if you don't train them and they stay?"
Visiting Beechworth Bakery, you can see that the employees are passionate about their jobs. They smile and laugh which has a positive effect on the customer.
"They have an atmosphere here and we work hard at maintaining it. You're here to enjoy yourself," says employee Sylvia Bankia, "Time flies - you're constantly on the go."
Because employees and managers have developed a shared purpose and values, they have a combined positive attitude to the company as a whole.
Today, Beechworth Bakery is famous throughout Australia, and its transformation serves as an example to others both locally and internationally. The bakery draws in tourists from around the world, and is credited with turning a dying rural town into a tourist attraction.
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Employee satisfaction has a direct impact on profit. Increasing employee satisfaction involves gaining feedback, empowering them, training, and valuing their contribution. The direct manager has the largest impact on an employee's morale. |