While capital is important for a business to thrive, hiring and retaining the right people in your organisation is even more crucial. This is because, when you bring on board the right people, you cultivate excellent talent within your company which is a win-win situation for the employer as well as the employees. If you want your organisation to reach the pinnacle of success, you need to invest in your employees before anything else. As Richard Branson, Founder of Virgin Group, told Inc., “If the person who works at your company is not appreciated, they are not going to do things with a smile.” Here are a few reasons why the right people in business are a lot more valuable than money:
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Your business suffers every time you have to train new recruits
With so much competition in the market, the best talent gets hired before you know it. If you have found the right people to work with, it is very important to retain them in your organisation for as long as you can because they are bound to look elsewhere if they feel like they are not appreciated enough. Creating a positive work environment and a healthy spirit of collaboration is one way of establishing a healthy work culture. Your business suffers massively every time you have to put in time and energy into hiring and training new recruits. Thus, if your best employees ask for a reasonable raise, it is smart to give it to them.
The right people will work like a team
One way a good company turns into a great one is when employees look out for each other and the company. The benefit of this spreads outside the four walls of your office too. When word gets around that your company has a collaborative work culture, more people want to work with you. If you want to make your customers happy with your business, learn to keep your employees in good spirits. Also, satisfied employees will put in their best efforts which in turn will increase the productivity of the company. All of the above happens when your employees' work is regularly appreciated and appropriately rewarded.
Your work culture will be driven by principles that will be upheld by everyone
The larger your organisation, the harder it is to get every employee to follow your rules. It is therefore important to forego rules for morals and principles. Use your standards and ethics to establish behavioral frameworks to guide ways of working instead of a scorecard enforced by a management team that has little to no idea about handling human resources. Guiding through principles builds trust and respect among your employees and they don't feel arm-twisted into doing things a certain way.
It depends upon you whether your employees will drive your organisation to greater heights or a downward stumble. Keep the above points in mind the next time you need to make a difficult choice between human capital and money.