Employees are a Valuable Asset or Just Liabilities in an Organization

What do you consider your employees? An asset or a liability. Many of them consider their employees as liabilities. Because the employees cost money to the company, the managers, owners or executives of the organizations of all sizes and industries consider them as liabilities. Human resources are the basic cost center for the organization and do not add to its value, is what the management believes. If you believe in these statements your company might be good, but it will never turn out to be great.

Great companies understand how they should treat their employees with respect and trust them in making customer-based decisions and also communicate with honesty. But many times, this becomes a challenge for the companies.

Reasons Employees are Assets in an Organization

1. Employees Provide Goods and Services:

Whatever goods or services an organization offers is provided through employees. Hence, it is essential to improve the performance and efficiency of the employees. There are employees with varied specializations and responsibilities in every department. The final goods are produced by the employees, promoting the products etc.

2. The employee turnover Can be Costly:

Employees turnover can turn out to be costly, and it can also affect the morale of both the clients and current employees. Employees may question employment longevity as well as the work environment. Besides, the clients may lose confidence in you as they may not connect with your staff and naturally may assume that there is no employee retention in your company. This can have a detrimental effect on your business.

3. Employees are the First Customer to the Company:

If you consider a customer as the king, then the first customer in your organization are the employees. If the employees in your organization are not happy and satisfied, you will not get a performance-driven result, and that will reduce the profits of the company.

4. Employees Benefit the Organization if Motivated Regularly

You will get 100% effort from your employees if you value their hard work and effort. Employees motivation programmes must be regularly held for employees. Your employees will help organizations help in the long run, keeping you ahead of all.

5. Employees are your Brand Ambassadors or Brand of Your Organization

The first face of any organization is the employees. The employee's satisfaction matters the most. An unhappy employee might spread negative words about your organization. Employee engagement is necessary to achieve the organization's goal.

6. Employees are Nurturers of a Company

Employees nurture a company in the same way kids are nurtured by parents. Employees welfare must be done to motivate the employees and increase their skills which will help the company to grow.

7. Employees are the Foundation to create a Strong and Successful Organization.

The base to a strong and successful organization is its employees. The strength, determination and dedication of the employees bring them in the list of intangible assets. If the base is not strong, the company can fall in an unexpected situation. To create a strong foundation, employees compensation must be taken care of in a better way without any biases. The organization can increase the salary or wages or provide incentives to their employees in return for their hard work.

8. Motivated Employees will Achieve Company's Short Term and Long Term Goals Easily.

If an organization takes care of the employee's benefits, employees health, employees rights and employees welfare by offering better compensation. They will indirectly motivate the employees to achieve the company's target. The employees will also develop new and innovative solutions to reach their goals.

9. The Major Contributors to the Profits in an Organization are the Employees

In the balance sheet and books of accounts, the employees appear as assets, but their value is beyond monetary value. Excellent reviews by customers or a brand name cannot be created without employees' efforts. It is the loyalty of the employees that create brand loyalty to the customers.

10. The HR Department also Consists of Employees.

The HR department consists of employees who are responsible for more employees hiring. They need to look at specific talents that can team up with the existing employees of the company. Hence employees in an organization are the workforce. Employees are more essential than the machinery or other tangible assets in a company. The organization to recognize their talents must build an employee value proposition to develop a unique edge in the company.

Key Takeaway

Employers must comprehend the trick of getting quality work from its employees. They need to understand that employees are the true assets of a company. A satisfied employee will perform his job with loyalty and hard work which will, in return, bring satisfied customers and clients. Employees' works appreciated at the right time attached with an employee value proposition will motivate the employees to perform more. Better compensations and benefits at work will retain the employees that will save the company's cost of hiring new resources and training them.

Recognizing the employees work at the right moment, and complementing the quality work will increase productivity and earn profits for the organization. The employer needs to take care of the employees who in turn, will take care of the company.