Why Tech Companies Must Prioritize Employees and Customers for Long-Term Success

“Customers will never love a company until the employees love it first.” - Simon Sinek

In the fast-paced world of tech, companies often prioritize shareholders above all else, focusing on short-term profits and quarterly earnings. But this approach comes at a cost—burnt-out employees, dissatisfied customers, and a business that struggles to sustain its success.

Here’s the truth: shareholders don’t create value. Customers do, and employees make it happen. Without happy customers funding the company and engaged employees driving innovation, shareholder returns will ultimately dwindle.

Tech leaders must rethink their priorities. The companies that thrive in the long run are the ones that put people—employees and customers—first. Shareholders will always make plenty of money when the foundation of the business is strong.

The Problem With Shareholder-First Thinking in Tech

Shareholders Don't Fund the Company—Customers Do

A common misconception in business is that shareholders are the ones funding companies. While shareholders may provide initial investments, the real engine of a business is its customers. Without customers purchasing products or services, there is no revenue, and the company ceases to exist.

Likewise, employees are the ones creating the value that customers pay for. They are the innovators, the builders, and the problem-solvers. Yet, in many companies, employees are treated as costs to be minimized rather than assets to be invested in.

On the other hand, shareholders are passive participants. They benefit from the value created by employees and customers but play no direct role in the company’s day-to-day success. When businesses put shareholders first, they alienate the very people—employees and customers—who make the business possible.

The Downward Spiral of Profit-Over-People Thinking

When companies focus on maximizing short-term profits at the expense of employees and customers, they enter a dangerous cycle:

1. Lower Customer Satisfaction: Cutting corners on product quality, customer support, or user experience may save money in the short term, but it drives customers away in the long run.
2. Employee Burnout and Turnover: Overworking employees or underpaying them leads to high attrition rates, which increases hiring costs and reduces productivity.
3. Reputation Damage: Customers and employees talk. Poor treatment spreads quickly, damaging the company’s reputation and making it harder to attract customers and talent.
4. Declining Profits: As customers leave and employee engagement drops, revenue falls, pushing leadership to cut costs further—and the spiral continues.

💡 Fact: According to Gallup, replacing an employee can cost up to 33% of their annual salary, making high turnover incredibly expensive.

This approach is not only unsustainable—it’s a recipe for failure.

Why Prioritizing Employees and Customers Works

1. Employee Satisfaction Drives Tech Innovation

Innovation is the lifeblood of the tech industry, and it comes from empowered, motivated employees. Companies that treat their workers well see greater productivity, creativity, and loyalty.

Case Study: Google
Google has long been celebrated for its employee-first culture. By offering perks like flexible work schedules, professional development opportunities, and mental health programs, Google creates an environment where employees can thrive. As a result, the company consistently ranks as one of the most innovative in the world.

💡 Fact: A 2022 Gallup study found that highly engaged employees are 23% more productive and contribute to 21% higher profitability.

2. A Customer-First Approach Builds Loyalty

A customer-first approach creates loyalty and trust, which are critical for sustainable growth. When customers feel valued, they return, recommend your product to others, and stick with your brand even when competitors offer alternatives.

Case Study: Amazon
Amazon’s obsession with customer satisfaction is a key driver of its success. From fast delivery to an easy returns process, Amazon prioritizes customer convenience at every step. This focus has helped Amazon grow into a trillion-dollar company while maintaining customer loyalty.

💡 Fact: A 2023 Deloitte report found that companies with a strong focus on customer experience outperform their competitors by 80% in revenue growth.

3. Shareholder Returns Follow Naturally

When employees and customers thrive, shareholders benefit too. Companies that invest in people see stronger financial performance, greater resilience in tough markets, and a higher likelihood of long-term success.

Case Study: Salesforce
Salesforce embraces a stakeholder-first approach through its "Ohana" culture, treating employees, customers, and communities as family. This focus has led to high employee retention, top-notch customer satisfaction, and consistently high revenue growth.

💡 Fact: Salesforce’s stock price has grown over 700% in the past decade, according to Yahoo Finance, proving that putting people first is a winning strategy for shareholders.

Actionable Steps for Tech Companies to Prioritize People Over Profits

For tech companies ready to embrace a people-first approach, here are actionable steps:

1. Build a People-First Culture

• Create flexibility in work schedules, including remote work options.
• Regularly survey employees using tools like CultureAmp or Officevibe to gauge satisfaction and act on feedback.
• Foster collaboration and purpose by aligning employees with the company’s mission.

2. Invest in Employee Well-Being

• Provide competitive compensation and benefits, including mental health resources.
• Reduce burnout by promoting work-life balance and manageable workloads.
• Create clear career growth opportunities to retain top talent.

3. Focus on Customer Experience

• Actively listen to customer feedback and use it to improve products and services.
• Avoid cost-cutting measures that sacrifice product quality or customer support.
• Invest in loyalty programs and personalized experiences for customers.

4. Rethink Success Metrics

• Move beyond quarterly profits as the sole measure of success.
• Track Employee Net Promoter Score (eNPS) to measure employee satisfaction.
• Measure customer retention and Net Promoter Score (NPS) to gauge loyalty and trust.

5. Hold Leadership Accountable

• Train leaders on ethical management practices and stakeholder-first principles.
• Tie executive bonuses to metrics like employee engagement and customer satisfaction rather than short-term profits.

FAQ Section

1. Why should tech companies prioritize employees over shareholders?

Employees create the innovation and value that customers pay for. Happy, motivated employees lead to better products, higher productivity, and long-term growth, which ultimately benefits shareholders.

2. How does employee satisfaction impact innovation?

Engaged employees are 23% more productive and drive 21% higher profitability, according to Gallup. They are more likely to contribute creative ideas and remain loyal to the company.

3. What are examples of employee-first companies in tech?

Google, Salesforce, and Shopify are excellent examples of tech companies that prioritize employees while achieving long-term success.

The Ripple Effect of a People-First Approach

Prioritizing employees and customers doesn’t just benefit the company—it has a broader societal impact. Treating employees well reduces burnout and improves mental health. Focusing on customers builds trust, creating a healthier economy where businesses and consumers thrive together.

Conclusion: Building a Better Future in Tech

The tech industry thrives on innovation, creativity, and trust—all of which come from people. By prioritizing employees and customers over short-term shareholder profits, companies can build a sustainable future that benefits everyone involved.

Corporate leaders, it’s time to rethink your values. Shareholders will always profit when companies focus on doing right by their employees and customers. A people-first approach isn’t just ethical—it’s strategic.

Ask yourself today: Are we truly putting our employees and customers first? What’s one change we can make this quarter to build a better culture and a stronger business?