For many years I have been 100% behind creating an environment of employee security and ownership at the work place. I have believed and implemented that paying your staff well is imperative to building a long term, stronger company.
In talking with an economist professor the other day I was reminded about the saying of "Human Capital". Reminded that any companies greatest monthly expense should be the value of Dollars spent on employees. I have always endeavored to find the most capable and qualified candidate that given the right tools and training would enable my business to be more profitable.
I am constantly amazed how companies and management can so willingly dispose of not only talent, but costs in training staff. It does not matter the laws of the state or government that presides over a company, the laws and fundamentals of keeping staff far outweigh short term profits obtained by disposing of staff.
I once came across a company who fired their top sales person based on my issue. Since the sales persons commission payments were not capped by the company, the more product that the sales person sold, the more income that they achieved personally. The sales person had been so productive for the company that their monthly income had just hit a number greater than the CEO's monthly income. The CEO would not have another person in the company generate a greater income than themselves and so asked for the persons resignation.
It is easy to see the problem with the thinking of the management of this company, because the more product or service that the sales person sells, the better off the company and therefore the shareholders are. Getting rid of your best performing sales person is certainly not in the interest of the company, or the employee. Ask yourself if this type of closed mind thinking plagues your business operations and thinking. It might not be as obvious as this companies decision, but how often has your company disregarded "Human Capital"?
To come back to the point, of productivity, I believe that the above mentioned example is one of the many stories that have chiseled away at the confidence that the general employee has in any employer in the market place. Everyday the employer is withdrawing benefits, paying lower wages and demanding greater commitment. This has all left the labor market quite shell shocked, left without knowing how protected their job is. Remember for the family man, this leaves him not knowing whether he will be able to place food on the table for his family next week!
The stress of the insecure job market increase un-productivity!
An example of how security and feeling valued by your employer can make a difference can be found in the time where the Golden Gate bridge in San Francisco was built. After 23 employees fell to their death while working on the construction of the bridge, the employers at great cost put a catchment net under the construction workers in order to catch any employee before they fell to their death. No only did this net save the lives of 10 employees, but the performance of the employees increased considerably. The productivity improved to a point that they bridge was completed in 75% of the budgeted time period.
Creating a culture of security and opportunity will make your colleagues work much more effectively and create for greater profitability for the company as a whole.
In talking with an economist professor the other day I was reminded about the saying of "Human Capital". Reminded that any companies greatest monthly expense should be the value of Dollars spent on employees. I have always endeavored to find the most capable and qualified candidate that given the right tools and training would enable my business to be more profitable.
I am constantly amazed how companies and management can so willingly dispose of not only talent, but costs in training staff. It does not matter the laws of the state or government that presides over a company, the laws and fundamentals of keeping staff far outweigh short term profits obtained by disposing of staff.
I once came across a company who fired their top sales person based on my issue. Since the sales persons commission payments were not capped by the company, the more product that the sales person sold, the more income that they achieved personally. The sales person had been so productive for the company that their monthly income had just hit a number greater than the CEO's monthly income. The CEO would not have another person in the company generate a greater income than themselves and so asked for the persons resignation.
It is easy to see the problem with the thinking of the management of this company, because the more product or service that the sales person sells, the better off the company and therefore the shareholders are. Getting rid of your best performing sales person is certainly not in the interest of the company, or the employee. Ask yourself if this type of closed mind thinking plagues your business operations and thinking. It might not be as obvious as this companies decision, but how often has your company disregarded "Human Capital"?
To come back to the point, of productivity, I believe that the above mentioned example is one of the many stories that have chiseled away at the confidence that the general employee has in any employer in the market place. Everyday the employer is withdrawing benefits, paying lower wages and demanding greater commitment. This has all left the labor market quite shell shocked, left without knowing how protected their job is. Remember for the family man, this leaves him not knowing whether he will be able to place food on the table for his family next week!
The stress of the insecure job market increase un-productivity!
An example of how security and feeling valued by your employer can make a difference can be found in the time where the Golden Gate bridge in San Francisco was built. After 23 employees fell to their death while working on the construction of the bridge, the employers at great cost put a catchment net under the construction workers in order to catch any employee before they fell to their death. No only did this net save the lives of 10 employees, but the performance of the employees increased considerably. The productivity improved to a point that they bridge was completed in 75% of the budgeted time period.
Creating a culture of security and opportunity will make your colleagues work much more effectively and create for greater profitability for the company as a whole.
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