If you a business leader who believes your company’s profitability lives and dies by the health of your balance sheet, then this might be the right article for you.
Taking the time to also consider the impact your staff have on shaping and driving the worth of your organisation can often impact your bottom line in more ways than you may realise.
Knowing how to value your employees is critical to assembling a workforce that can take your business to greater heights, and even ensure they feel recognised and rewarded for their efforts.
Here are five ways to ensure your most valued assets are hitting the mark and feeling appreciated for it.
1. Measuring initiative
It’s no secret that employees who take initiative demonstrate greater productivity and are more likely to take risks that pay off.
That’s why it’s critical to distinguish your most motivated workers from the others. One option is to rank employees in terms of their original ideas, innovation and engagement with wider industry trends. This exercise will offer you a compelling snapshot of your high-value performers, particular when performance reviews come round.
2. Factoring in emotional expenses
Sometimes, your star achievers are also the most likely to bring the rest of your team down. Consider the case of the talented web developer with the habit of unfairly criticising teammates or a micromanaging finance manager who has a knack for lowering staff morale.
Emotionally expensive team members can drain enthusiasm, passion and productivity – factors with consequences for company culture and business growth.
Emotional expenses are an important quotient for calculating and knowing how to value your employees – failing to address them can be a costly mistake.
3. Cost effectiveness
Although it’s vital to consider the impact of an employee’s personality and attitude, it’s equally important to think about whether your staff member delivers on the sum they are paid. Does your favourite hire’s skill set match their salary or could they easily be replaced?
Sometimes, two lower-paid staff members might promise more versatility than a high-flyer who demands an above-industry pay cheque.
While you shouldn’t devalue skills and experience, your employees’ cost effectiveness should always line up with your business needs.
4. Decisions, decisions
Sharp decision making is an essential factor in business success.
However, many employees fail to take the lead when it comes to making the kind of professional choices that will see your company get ahead. Typically, high-value employees can determine the pros and cons of two competing choices and take the path that results in the highest return.
They’re also capable of making choices that compromise their likeability in order to serve your organisation in the long term.
5. Loyalty rewards
Ultimately, character is a powerful indicator of a good employee – recognising integrity is an astute business move.
Loyal employees put commitment to the organisation ahead of their personal agendas and are less likely to flirt with the competition or jump ship.
Disloyal staff members can poison morale and spell disaster for employee retention and growth.
Investing in loyal staff members is always a smarter alternative than valuing shiny new hires that may just be a flash in the pan.
How to value your employees
Calculating employee value can be a tricky process, but it’s necessary if you want to see your business soar.
Remember that your staff members are your most lucrative assets – if you don’t measure their worth, you risk sacrificing growth.