Do You Consider Your Employees An Asset or Just Pure Cost?
The other day, I was talking to an individual about his small business, and he asked me what he should be paying his employees. Now mind you this is a small company with only two employees, and occasionally some part-time workers to handle some of the larger accounts which come up during the month. We were talking about how to trim costs off his business so that he could make more money. He was wondering how he might do that because his labor costs were the highest costs of all. Okay so let’s talk about this for second shall we?
Now then, here’s where perhaps a little philosophy is good, and I’d like to give you something to think about. Specifically I’d like to ask you a question; “in your business, do you consider your employees an asset to your company, or do you see them as merely cost?” How you answer this question says a lot about how you think when strategizing how to grow your business, it probably says a lot about your personal psychology, theory of commerce, and level of empathy as well, but I’m not here to address those issues today.
Rather, what I’d like to say is that; whereas, it is true that labor costs are real, and you need to watch those costs, you also need to understand that your employees are one of your greatest assets, and when they are happy and productive, it increases the efficiency of your business allowing you to make more money, and if they are on your same team with that set of ideals, your business will run a lot smoother. No, that’s no guarantee of success, there’s much more to running a business just that.
Nevertheless, if your employees feel that you are treating them unfairly, taking advantage of them, or completely disrespect them as human beings, you can’t expect to get their best efforts out of them, especially when you’re not looking. It really is nothing more than a matter of; buy-in. If your employees are in it to win it, to give great customer service, and to make your company great, for your benefit and theirs, it will surely show.
At that point, whether you pay them the minimum, or the maximum, or something in between with a little bonus here and there for excellence, well it can make all the difference. You can’t pay people more money and expect them to work harder, more efficiently, or better, rather you need to build in a reward system, exercise a little bit of tough love management, but make sure they know you are on their team, so that they will be on yours. Indeed I hope you will please consider these words of wisdom, they were not easily learned. Think on it.