We have all heard the saying: ‘People are a company’s greatest asset’ or some variation of that saying. However, is this really true? Do we really live up to this? To analyse this, first let us look at some other assets and examine how we treat them.
Our homes: Owning a home is a great undertaking. Often, it is the single biggest investment that an individual makes in his/her lifetime. We clean our homes, do maintenance on them, and ensure that they are insured.
Investment portfolios: These are constantly scrutinised to ensure that they are performing. Underperforming stock is sold as soon as possible in order to minimise losses. We keep abreast of what is happening in the market so that we can operate from a position of wisdom and be proactive.
Machinery: Investment in major machinery or technology is capitalised. Adequate insurance is put in place to ensure that replacement is not onerous on the organisation. Training is delivered to ensure correct usage.
Do we treat our employees this way? How many of us have been consistently scaling back on the benefits that we offer our employees? This is done while we are asking them to produce more, work longer hours, and be more committed. How many companies have seen the need to cut back on training and development in these tough economic times?
Companies are in business to make a profit. In order to do this, they need to control their expenses. That is business sense. The challenge is that we see our employees as expenses and not the assets of which we speak. This is why, in an era where it is critical for us to ensure that we have the right people in the right roles and that those persons are rewarded for good results, we have been steadily cutting back on employee benefits.
In order for us to turn our economic (mis)fortunes around, we need our people working together and being productive. The best way for this to be achieved is to ensure that they are motivated, fully engaged and loyal. This is highly unlikely, if we see them merely as expenses.