Why You Should Treat Your Employees As An Asset

Posted on written by Marvin

Why You Should Treat Your Employees As An Asset - PSS Blog

In the world of business, assets are not just the financial and physical resources that a company owns. Human resources, or more specifically, your employees, are equally—if not more—valuable.

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 who will rise in value in the long term?

Deciphering the Asset: The Value of Human Capital

An asset, by definition, is a valuable resource that can generate revenue, provide utility, or contribute to the wealth of its owner. When we apply this concept to employees, it becomes clear that people are the backbone of any business, driving its success and innovation. By investing in employees, companies are essentially investing in their own future.

The notion that the greatest investment a company can make is in its people is not just an overused cliche; it’s a proven business strategy. Investing in employee development, satisfaction, and well-being can yield substantial returns through enhanced productivity, innovation, and loyalty.

Investing in your workforce and offering praise and rewards when applicable will contribute to a positive and efficient group of employees.

Unfortunately, many companies treat their employees poorly and then wonder why they have stagnant productivity or a high staff turnover rate.

What Happens When Employees Are Undervalued?

Ignoring the well-being and development of employees can have dire consequences for a business, including high turnover rates, poor morale, and diminished productivity. These outcomes not only affect the bottom line but can also tarnish a company’s reputation and its ability to attract top talent.

Employees who are treated poorly by the companies they work for are often disengaged. it has been widely reported that employee disengagement is costing the UK economy £340 billion every year. This is loss through training and recruitment costs, sick days, poor performance, high absenteeism and lack of creativity and innovation.

One of the top reasons that people leave organisations is lack of development opportunities. Investing in people and their professional development is one of the most effective motivators for retaining staff. If you are unwilling to invest in training for an employee, this can be interpreted as indifference towards that person’s professional development. This can be very disheartening and demotivating for that individual.

“Train people well enough so that they can leave, treat them well enough so they don’t want to”

Richard Branson

 Ideas from the Front Line: Leveraging Employee Insights

Front-line employees, those who interact directly with products, services, and customers, are often a goldmine of ideas for business improvement. Their daily experiences equip them with unique insights that can lead to valuable innovations and efficiencies.

This is particularly true for health and safety. The IOSH Managing Safely course highlights this exact point. When risk assessing, frontline staff can be invaluable as they go through the process every day, so suggestions to make the workplace safer and more productive will come very easily to them. Empowering employees by involving them in either their route for professional development or any evaluation of processes within the business will promote a vested interest in the company.

Top Five Reasons to Prioritize Employee Contentment

  1. Increased Productivity: Content employees are more engaged and motivated, leading to higher productivity levels
  2. Enhanced Loyalty: When employees feel valued and satisfied, they are more likely to remain loyal to the company, reducing turnover rates
  3. Improved Morale: A content workforce fosters a positive workplace culture that can attract top talent
  4. Greater Innovation: Happy employees are more creative and open to exploring new ideas, driving innovation
  5. Stronger Reputation: Companies known for treating their employees well are viewed more favourably by customers, clients, and potential hires

Five Strategies to Enhance Employee Contentment

  1. Offer Professional Development: Opportunities for growth and advancement show employees that you value their career progression
  2. Recognize and Reward: Regular acknowledgement of employees’ hard work and contributions fosters a sense of appreciation and belonging
  3. Ensure Work-Life Balance: Respecting employees’ time and personal life leads to happier, more productive team members
  4. Foster Open Communication: Encouraging open dialogue and listening to employee feedback demonstrates respect and consideration for their opinions
  5. Promote Health and Wellbeing: Supporting employees’ physical and mental health shows a commitment to their overall well-being

If your organisation would like to build a better wellbeing culture that values employees and their contribution to the company, the IOSH Managing Occupational Health and Wellbeing course provides managers with the knowledge and tools to create a healthier, more engaging work environment. By promoting health and wellbeing, organisations can ensure their employees are not just content but thriving!

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Project Skills Solutions have been providing NRSWA training to individuals and companies since 2004. Our team are trained to give you the very best advice in your course selection and focussed on customer service.
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