While network television brings more devastating news about the economy every night, we also need to be mindful of employers and employees who are making beneficial, even heroic, efforts to help each other and help the economy.

This is an outstanding effort from an employer that will motivate and retain good employees while reducing costly employee turnover.

Last December, 300 employees in Ashland, Ohio, were devastated when Archway Cookies, owned by a private equity firm, suddenly closed the plant, eliminating their jobs and health insurance. However, Lance, Inc., a Charlotte, North Carolina-based snack maker, bought Archway, reopened the plant, immediately hired 60 employees and reinstated its health insurance. More employees will be rehired as business improves.

So far this would be a great story, but there is more.

Lance gave the 300 former Archway employees a $1,500 prepaid debit card to help with expenses. Rita Devan, an employee, said, “What are these people doing? They don’t know me. They don’t know us. They don’t know any of the Archway people. And they’re giving each and every one of us $1,500.” According to CNN (the source of this article), David Singer, the CEO of Lance, Inc., said the gift cards were a way for employees and the community to know that the new owners are different. “We wouldn’t do it anyway,” Singer said. “We want to make money. But this is the group of people we intend to hire. We just wanted them to know who we were.”

Many, if not most, business managers and executives would criticize the company’s generous action.

However, what is Lance likely to have received in return for his $450,000 investment?

1. A huge reservoir of goodwill from employees back at work; employees who have not yet returned to work; local officials; and the community at large.

2. A workforce that will likely go to any lengths to make sure Lance not only gets every penny back on his investment, but makes a lot of money and prospers.

Why is this? It is human nature. How do most people respond when someone demonstrates trust in them and makes a financial investment in them? before do they get anything in return?

Most of us would be determined to prove they made the right choice by doing whatever we can.

And, if there are some employees who don’t feel or act this way, the peer pressure on them will be substantial.

3. A workforce is likely to be very cooperative when the company asks for help to reduce costs or waste, learn new skills, improve quality or productivity, work overtime, or cut management slack if it makes a mistake.

4. Employees who value their employer and demonstrate it in small and large work actions on a day-to-day basis.

5. High retention of qualified employees and low employee turnover costs. This is a company that will spend its time and money improving its internal operations, products, and customer service rather than recruiting, interviewing, hiring, orienting, and training new employees.

6. Lower recruitment costs; qualified employees will look to this company as an employer; they will have a deep bank.

7. Much less grievances and complaints, sloppy or incomplete work, bad attitudes, tardiness, and absenteeism.

8. Thousands of dollars in positive publicity in the trade and consumer press, and in print and broadcast media.

Also, I estimate that Lance will recover 3-4 times his dollar investment.

Every organization wants talented, hard-working and cooperative employees and wants to reduce costly staff turnover. Notice that Lance, Inc., was willing to make a financial investment in advance to forge a strong new employer-employee relationship.

Management often has to take the first step in these matters because it is management’s responsibility to lead and because it has the resources. While your organization may not need to take steps similar to Lance’s, are there smaller but similar in principle things you could do? Remember that at some point the economy will turn around; how well you’ll retain valuable employees then has a lot to do with how you’re treating them now.