twitterfacebookgooglerss
America Economy!
Will America Survive This Economic Crisis? 18 Facts On How to Fix It →

Reasons why Employees are Regarded as an Asset and not a Liability to the Company

Reasons why Employees are Regarded as an Asset and not a Liability to the Company

 

There are many large companies who view its employees as extra costs to the organization. They keep on building restructuring strategies. They go for layoffs and calculate how much money can be saved by getting rid of some employees. They consider the employees as interchangeable liabilities. What is the outcome? The existing workforce will constantly live in the fear of losing their jobs. Their morale will go down and they will perform poorly. Moreover these firms never concentrate on resource development so the full potential of an employee remains unexploited at all times. It is easier to train an existing resource than to start training a new employee.

Nowadays the outlook of the senior management has changed for good. Most of the top companies treat their workforce as an asset rather than liabilities. They believe in developing the skills of the existing resources so that their expertise can be used more effectively in the key areas of business. Whether it’s a retail business or an insurance company, customers are very important. If the company is known as “one of the best places to work”, then the image of the company gets a boost. Employees and customers will be able to trust the firm and its products.

Every person has some unique capabilities. If you are a part of the top management then you should hire only those managers who have the ability to find out such qualities in the employees. They have to make sure that each employee has been assigned a role in which he is competent enough. In this way the company will be able to build a highly skilled employee group where each one will specialize in a specific domain.  The competitive advantage will be huge.

If the employee is new or even if he has been working for a few years, he might be lacking in a few areas. As a mentor, the manager has to evaluate and train all his employees. It is always better than shouting or abusing them.  If the manager is cooperative then the employee will be able to overcome obstacles in a short period of time.  Sharing information and asking suggestions for improvement not only helps maintain cordial relations but also promotes trust and loyalty. The employees will perform better and accomplishments will be high. You can also send the employees to specialty training programs so that they can adopt the best practices in business.

In spite of this, it is possible that restructuring is necessary. What are the things that you will follow?

  1. Invest money to get a detailed analysis of the impact of restructuring your organization. Consider the employees, customers and investors before making the final decision. Know the opinions of the pioneer performers of the firm. See what they have to say about it.
  2. Give the existing employees a reason to stay. They should know why the company is retaining them. The senior management should take pains to decide whom to retain and whom to terminate. The company might face severe crisis if you opt for random layoffs. Explain the company’s goals and objectives for opting for a restructure to the employees. You cannot work with a staff that does not believe in the company’s policies.  In many cases you have to set up sessions for the managers as well as the existing employees so that they understand the new modus operandi.
  3. Think about the people who are getting layoff beforehand. The terminated employees should receive prior notices and should get maximum time in order to be mentally prepared for it. Think about Workforce planning, performance management, compensation and all other factors that affect the growth of the company beforehand.

Ted Swanger is an HR practitioner for 7 years already. He graduated from a University in Michigan where he obtained his degree in Organizational Psychology.  He wouldn’t be who is he today, if it wasn’t because of Emile Haddad Seattle. Follow him on twitter @IamTedSwanger

Published by Valentine Belonwu

My name is Valentine, founder of this site, an entrepreneur working as a moderator at Bizsugar a small business community news site. Connect with me on Google+ at Valetine Belonwu

Leave A Reply