Paying It Forward is Good Business: 6 Reasons Why Leaders Should Embrace Generosity

Creating a culture of generosity by paying it forward is not just good business — it’s the right business. Leaders who embrace this principle will have an advantage over those who don't, and here's why.

In the fast-paced, competitive world of business, it’s easy to get caught up in the grind of quarterly reports and bottom lines. But the collateral damage ends up being burnt-out employees, repetitive meetings, a loss of vision, a severe lack of joy (yes, it's an important component of a strong corporate culture), high turnover, and unnecessary stress.

But what if I told you there’s a surefire way to meet deadlines and duties while also creating an attractive workplace filled with engaged employees? Enter the magical, mystical concept of “paying it forward.” Yes, it sounds like something your grandmother might have preached about, but trust me, it’s got some serious business mojo.

So, grab a cup of coffee (better yet, buy one for someone else) and let’s dive into why paying it forward is not just a warm-and-fuzzy idea but a smart, strategic move for corporate leaders.

1. Create a Culture Where People Actually Like Each Other

Imagine a workplace where everyone is as excited to see each other as they are to see their favorite Netflix series release. Paying it forward helps create that environment. When employees help one another, share tips, or just give a high-five for a job well done, it fosters camaraderie. Next thing you know, you’ve got a team that not only survives Monday but actually thrives on it.

A culture that fosters camaraderie not only boosts morale but also enhances teamwork and productivity. Bonus: when employees see that their contributions are valued and that they’re part of a supportive community, they’re more likely to go above and beyond in their roles.

2. Make Your Clients Think You’re the Business Equivalent of the Goose Who Laid the Golden Egg

You know what clients love? Being treated like royalty. Paying it forward can make your business that fabled goose of client relationships—rare, magical, and highly coveted. When you go out of your way to help clients without expecting immediate returns, they’ll remember you. They might even write you a love letter (or at least a glowing review). Your business isn’t just about what you sell or do — it’s about the people who help you do it.

By prioritizing generosity and reciprocity in dealings with clients and partners, businesses build stronger, more resilient relationships. When you’re seen as a company that genuinely cares about the success and well-being of your clients and partners, you gain their trust and loyalty. This can translate into long-term partnerships, repeat business, and valuable referrals (read: lots of golden eggs).

3. Pay it Forward and Pad Your Reputation

In today’s socially conscious market, companies are increasingly judged by their ethical standards and community involvement. Embracing a pay-it-forward mentality not only aligns with these values but also gives your brand a reputation boost. In the age of online reviews and social media, a good reputation can spread faster than a viral cat video. People will start talking about how awesome you are and this positive perception can lead to increased brand equity and make your company a preferred choice among consumers and stakeholders. Remember though, this has to come from a genuine desire to pay it forward, or your upstanding reputation will lose steam quicker than a New Year's resolution.

4. Turn Problem-Solving into a Team Sport

Let’s face it: no one enjoys dealing with problems alone. It’s like being stuck in a never-ending game of Monopoly. Generosity and collaboration often lead to a free flow of ideas and creative solutions. When you foster a culture of paying it forward, you encourage team collaboration. Employees start helping each other out, brainstorming together, and sharing solutions. Before you know it, problem-solving becomes a team sport — and everyone’s playing to win.

A culture of paying it forward promotes a mindset where individuals feel comfortable sharing their insights and working together to tackle challenges. This collaborative environment can lead to more effective problem-solving and innovative solutions that drive business growth.

5. Attract Top Talent Who Actually Wants to Work for You

Ever notice how the best employees are like the coolest kids in school? They’re not just looking for a job; they’re looking for a place where they’ll be appreciated. A culture that values paying it forward is a magnet for top talent. They’ll want to work in an environment where kindness and mutual support are part of the daily grind, rather than just a buzzword in HR’s handbook.

A company that actively practices paying it forward is likely to attract individuals who are motivated by more than just financial rewards. Additionally, such a culture helps retain employees, as people are more inclined to stay with a company that aligns with their values and where they feel appreciated.

6. Start a Ripple Effect That’s More Powerful Than a Viral Video

Paying it forward has a ripple effect. Generosity is contagious. When you lead by example, your generosity inspires others to do the same. This can create a wave of positive energy that extends beyond your company, making you a catalyst for a more supportive and collaborative business world. Being a catalyst for change is kind of a big deal, and those who inspire others to proliferate these values ultimately fan the flame of innovation and success beyond what they could have accomplished on their own.

Examples of Paying it Forward

Although you don't need to plan your generosity, it can help to start thinking about what paying it forward looks like for you.

In everyday life it might be:

• A random act of kindness: letting someone out in traffic; holding the door; smiling with eye contact; raking or mowing someone's lawn, or plowing their driveway, etc.

• An anonymous gift: paying for people behind you in the check-out line; sending money to someone; sharing a good fortune; passing along savings opportunities just because you're thinking of them, etc.

In the office it might be:

• A random act of kindness: letting someone share their idea in a meeting; holding the elevator; smiling with eye contact; cleaning someone's cubicle, getting someone a coffee, giving someone a ride to work, etc.

• An anonymous gift: ordering lunch; sending an uplifting note to someone having a hard time; sharing a solution to a problem, etc.

In leadership it might be:

• Sharing personal experiences and knowledge with employees with the intention to help them grow and succeed.

• Giving ideas and resources that have worked for you or that you think could work for someone else.

• Offering encouragement and assistance when you see someone struggling.

• Acknowledging the efforts, successes, and challenges that others experience.

• Advocating for those with less experience and providing the training that will position them well.

• Leading by example (Hint: this is the essential leadership quality of Generosity, the 'G' in Leading with GRIT®)

Conclusion: The Bottom Line

In the grand game of business, paying it forward is like finding a secret level where everyone wins. It boosts morale, strengthens relationships, enhances your reputation, drives innovation, attracts top talent, and sets off a ripple effect of goodness. Plus, it’s a lot more fun than spreadsheets and quarterly projections (which will also get done, by the way, but probably much quicker and with a smile instead of frown).

By helping others, by paying it forward, you'll create an energy that is more attractive and hard to dismiss. Often we want something so badly, we try too hard, we get too focused (usually on the wrong things) and we create an energy that is repelling. When your energy is more attractive, good things (including your goals) flow more easily into your world.

Generosity (the "G" in GRIT) is about giving and receiving (remember to also receive gracefully, which allows the good energy to flow both ways). This kind of generosity creates a feeling of abundance — you have enough and you are enough.

As a leader, it’s essential to recognize that the impact of your actions goes beyond the balance sheet. Embrace the power of paying it forward and watch as it transforms your business into a more vibrant, dynamic, and successful organization.

P.S. Paying it forward (Generosity) comes very naturally when you have your GRIT together — it starts with your Truth→ you align with Integrity→ and you Respect yourself and others! Get the full GRIT roadmap in my book, Leading with GRIT®