Human Resources – Asset or Expense?

How many of you have heard, or even spoken the phrase, "our people are our best resource," or something similar?  I know that over the years in countless all-employee meetings I have heard these words used.  Unfortunately, without corresponding actions, these are nothing more than "throw-away" words devoid of substance and meaning.   

If employees are indeed the most important resource within the company, how does the CEO treat them?  It all starts with the CEO.  CEOs must walk the talk and reflect the message that they convey at their company addresses.  Does your leadership talk about the company’s intellectual capital or do they talk about “headcount?” 

When discussing the capital assets of the company does the leadership talk only of property, plant, and equipment, or do they also include the people – the human resources? 

Has the statement, "we can't afford to give increases this year," been used in your company?  If so, this is more than likely reflective of an opinion that employees are not so much an asset worthy of investment, but instead a necessary expense to minimize.   

Treating employees as assets instead of expenses increases their engagement, their sense of ownership, and their output!  Investing in employees rather than trying to minimize their cost provides returns across all areas of a company’s business – quality, productivity, delivery, and customer satisfaction and it begins with creating and nurturing a culture of mutual trust and respect. 

To learn more about the leadership topics of organizational development, resource leveraging, and intellectual asset management, send me a note at info@ventusstrategies.com