How do you view your employees?
You pay them a wage and invest in training and development so they can work to the standard you require. You might also cover costs for business trips and other activities. This makes them seem like an expense. After all, you are paying money for their service.
What about treating them as an asset? Instead of seeing them as something that costs you money why not look at your workforce as people that will rise in value in the long term?
We have 3 reasons why management and business owners should treat their employee’s as an asset rather than an expense.
You Will Increase Staff Retention
Many companies have issues with retaining staff.
Bad management practices, no rewards and poor morale all lead to a high turnover rate. The average turnover rate in the UK is around 8% however some companies record a far higher number. For example Sports Direct, which was criticised in Parliament for its workplace practices and treatment of employee’s, recorded a turnover rate of 22%.
Treating employee’s like part of a large family and making them feel as though they are valued will keep staff turnover rates low.
Motivation Will Rise Significantly
Aside from keeping your best employees at your company, treating your workforce like an asset that should be rewarded for the work that they do will also contribute to their motivation.
A team with poor morale is a team that won’t put everything into the job. Productivity and quality are sacrificed when staff aren’t motivated. Treating your employees in the right way and investing in their career through training and development will keep them driven and interested in what they do.
Invest in your workforce and offering praise and rewards when applicable will contribute to a positive and efficient group of employees.
They Make Your Business Work
You have to remember that it is your staff that make your business tick over.
Unless you have some superhuman ability where you can carry out 10 jobs at the one time, your business depends on your staff and treating them like an asset is paramount to how well your business operates. Many companies seem to think that with a slow economy and limited job prospects in many areas they can treat their workforce poorly.
Remember that it isn’t just the work that your business does that is at stake by ill-treating your employee’s but it is also your reputation as well.
Treating Your Employee’s As Assets
Think of your staff as any other asset you have.
You buy a house. You want it to increase in value over time so you invest in it and treat it well. The same should ring true for your employee’s. The better you treat them and the more you spend on their training and development then the better it will be for your business in the long term.
Not only will staff retention rates increase but you will have a highly motivated and skilled workforce that will be committed to your company realising its full potential.