When it comes to your company’s most valuable asset, a lot of areas come to mind. Research and Development, marketing, or even a patent might take the top spot. But that’s not even close to your company’s most valuable asset. The answer is the tens, hundreds, or thousands of employees that make up the workforce of your company. In the 20th century, companies considered production equipment to be its most valuable asset.
However, today, it’s considered to be the knowledge of its employees and their productivity. All intangible assets such as patents, copyrights, intellectual property, brands, trademarks, and R&D are created by people. Therefore, people matter most to you and your business. They are the most essential contributors toward profits and shareholder value. That said, people are key assets for any organization. In today’s continuously changing business world, it is human assets, not the fixed or tangible assets that differentiate an organization from its competitors. The knowledge economy distinguishes one organization from another.
How people benefit your business
Employees champion your business and determine the success or failure of it. The work they do determines what customers and partners see, so it’s important for you to treat your employees with the value they bring. Employees leading an organization might be able to be replaced physically, but their skillsets and knowledge can’t be. This is because each person hired brings a different set of skills to the table even though the job yields the same set of skills.
Besides, the skillset of employees accounts for 85 percent of a company’s assets. Therefore, employee efficiency and talent determines the pace and growth of an organization. Organizations need to recognize the value their employees have and praise them accordingly. This includes their knowledge, expertise, abilities, skillsets, and experience. These are all invaluable and intangible assets for securing a future for the company. So when employees feel valued, they will gladly compete in the race and beat the competition.
Photo by Marten Bjork on Unsplash
Reasons employees are considered invaluable assets
1. Essential to providing goods or services.
Improving employee efficiency and performance are major priorities for an organization. Employees produce the final product, take care of finances, promote your business, and maintain the records for decision making.
2. Employees are the first customer of any organization.
If the organization does not have happy and satisfied employees, they will not deliver performance-oriented results. Therefore reducing the profits of the organization.
3. Employees give their 100 percent to any organization.
No matter what size the business is, success is the result of continuous hard and smart efforts put in by happy and valued employees. This results in keeping the organization going, competing with its competitors and elevating ahead of them all.
4. Employees are the face of an organization.
It’s the satisfaction level of your employees that matters the most. So, if an employee isn’t happy, she might spread a negative word about the organization, even after leaving it. What’s more, is that an unhappy employee will lack motivation and will not perform well, leading to unsatisfactory performance. This results in unachievable performance targets, low profits, and employee churn.
5. They are the nurturers of the organization.
Employees are the ones who give their heart and soul to an organization. Similar to how parents raise their children, employees nurture their organization with their values and endless efforts to take it to the top.
6. Skilled people with knowledge.
The most irreplaceable factors employees bring to the table are their skillsets. Their skills include training and development programs, experience in a specific field, and an understanding of companies’ cultures, systems, and work procedures.
7. Employees are the base of a strong and long-running organization.
Employees run the organization, no matter what level. This means their strength, commitment and dedication, and their emotional connection with the organization can’t be judged as assets in monetary value.
8. Motivated employees make a significant difference.
Employees reach new targets, meet customers’ demands and needs, develop new and innovative products, and perform enormous and huge efforts to achieve the company’s objectives.
9. Employees are major contributors to profits and worth of the organization.
It goes without saying, but employees can’t be given a monetary value for the effort they put in to help the business earn profits. This results in excellent customer reviews and creating brand loyalty from customers. Therefore, employees are the most valuable assets an organization has. It’s their abilities, knowledge, and experience that can’t be replaced. So, going forward, organizations need to place emphasis and importance on the contribution that employees that they have in order to propel themselves ahead.