People are not things that an organisation owns. They are individuals with families, aspirations and feelings; they experience hope, happiness, sadness and tragedy. Despite what some people may think, the value of people is not something that can be quantified by cost alone and then slowly written off.
Remembering that people are human beings and treating them objectively, ethically, fairly, openly and with compassion is not just the right thing to do. It is also good for business. Happier, settled and less stressed employees will be more productive and less disruptive.
I appreciate that by using the ‘greatest asset’ phrase, organisations are trying to show that they value their employees. Like them you have probably worked out that without people you wouldn’t be able to get things done, and your organisation couldn’t exist. But don’t label people as an asset – instead acknowledge that they are an essential part of your organisation. It couldn’t function without people, and properly managed, they are a critical part of your competitive advantage.
You will doubtless face competitors in your line of business and the people you employ can be the advantage you have over them. If your People Strategy includes recruiting and developing a high performing team you have the potential to outperform your competitors. Unfortunately I come across organisations that only seem to tolerate employees as a necessary evil, and treat them as just a way of getting work done. Unsurprisingly it is these organisations that have to deal with a constant stream of difficult employment issues and high employee turnover.
Some of the organisations claim that their approach to People Management works as they are making a profit, which to them is an indicator that they are operating successfully. I would argue that their organisations would run better, costs would be lower and profit margins much higher, if they had an effective People Strategy that reduced employee turnover. It doesn’t take a genius to work out that the need to recruit less often would save time and money, and avoid lost productivity caused by vacancies.
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