How Employee Self-esteem Has a Direct Impact on Business Success



As a former manager turned motivational coach and therapist, I have seen how self-esteem of individual employees and in particular managers can impact a business; its productivity and culture. Hence there is more than one reason why I am such an advocate why companies should invest in it and believe me, the ROI is real.

There are countless things to be said about confidence, self-esteem and how to improve it, but in this article I will focus on why it is important and how it impacts business.

Investing in employee self-esteem (and overall emotional wellbeing) is one of the best ROI an employer will ever see. Why? Because as countless of organizations state in their mission statement; it is their people that make their organization, they are the assets.

If your employees are one of you biggest assets and your aim is to decrease turnover and absenteeism, investing in their mental, emotional wellbeing and progression will be one of the best investments you can ever make. Why? when people feel good mentally and emotionally they are more productive and contribute positively to the work environment and culture. Makes sense right?

Here come two facts that I strongly believe in:

FACT 1: Employees with healthy self-esteem produce better results.
One of the main causes of business failure is the fear of decision-making, change, and failure. And what’s the reason behind that? The perception employees have about their competence and their ability to respond to challenges and new situations. Employees with a healthy self-esteem trust their abilities to do the work and that they will do it well. They also trust their decisions which also impacts effectiveness.

FACT 2: Employees with a healthy self-esteem contributes positively to the work environment and company culture. 
Your self-esteem affects how you see the world, it affects the way you communicate and how you interpret others, and importantly, how you interact with others. It is a fact that leaders and employees with a good self-esteem are better communicators which is a must in any corporate environment.

And last but not least, it is also linked to motivation.
A company’s ability to motivate their employees is a well-known factor for success. The art of motivating lies in the ability to make people want to do better, provide them with a reason to do something. When you are investing in self-esteem you are not only increasing the mental and emotional wellbeing which will improve productivity but you are also indirectly using it as an intrinsic motivational tool. They will feel invested in. It is a win-win situation and as an employer you can not lose.