Group of people

Why Companies Should Invest In Their People.

Why don’t companies invest in their people?  
The should, it’s the smartest business decision they can make.

Based on a survey done by Gallup in 2018, a  staggering 85% of people are not happy at work. Another stat that came out of this survey  is the true cost of replacing employees can be twice their base salaries depending on their wage, role and experience. The cost of replacing high performers who often deliver 400%  more in productivity than their average counterpart  is  even higher!!!! 

A focus on an employee-centric company culture is the new trend but the work behind  the shift  is not changing fast enough.  Employers need to change the way they lead  the  company culture and that  takes a lot of  heavy lifting and requires  the  commitment  of both time and money. For many reasons, employees have not been a priority or worse, a budget line on the budget.   

Customers come second, employees first. It’s a philosophy that brings unexpected benefits to both the company and its clients.

Richard Branson

A few reasons why  I believe companies are not investing in their  people: 

Small to medium sized businesses could be managed by the owner, therefore does not have the resources or knowledge to lead the change. They are unsure of where to begin, because they do not know what to ask.  How can you ask a question when you  don’t know there is a solution to be  needed?  This is  what  I think owner managed businesses feel about Human Resources and Talent Management. They are great business leaders, but leading people is not their expertise. 

Company leaders have a dictatorship style that has been a very traditional  method of managing.  With this type of style, you  are either  not aware  or  you  do not  care  about  the state of your  employee, or both!  This type of culture is  unproductive,  costly  and inefficient.   

Organizations are unaware of  the  culture because  there is a  lack of communication between the leadership and employees. Communication is key to set expectations, retain top talent, and continue to understand the state of employee  satisfaction.  There is no such thing as over communicating. 

Employers  don’t  ask. 96% of employees want to have a check in at least once a  quarter, if not monthly.  They want to be heard,  they want to  contribute,  they want to  have impact  in the company, and  they want to  hear praise.  However,  most  organizations are still completing traditional Performance Reviews on a semi-annual or annual basis,  or  not at all. They are ineffective and may do more harm than good.  To understand the state of your company, you need to ask your employees and listen to what they have to say.  

Your culture is your brand, which means  it’s  not just for your current employees, but also for your customers and potential future employees as well.  To be competitive you want to be known as a top employer. A positive, well-regarded culture distinguishes your company, helping you stand out among competitors when recruiting talent in this increasingly competitive economy. When given the opportunity to choose, you can bet that a prospective employee will  gravitate towards the company with the defined vision  and  values  and with an employee-centric culture. 

To be a top-employer, you need to invest in your people.  It will take time, resources, and money but you  can’t  afford not to! 

Tracy Arno, CEO

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