Do you consider your employees assets or expenses? This is a quick post to help you orient yourself with regards to how you feel about your people, your team, your employees. How did you answer that first question?
Clearly, the largest expense line in just about every company is the people line. Unfortunately, this can make one short sighted about the most important line item on the income statement.
If people are assets, as I believe they are, you should be investing in getting the very best people and then investing in making sure they continue to be great. Two great people out perform four good people.
So, you should be willing to invest more in hiring better people and improving them.
If you believe people are expenses, which I don’t agree with, you want to make sure you pay only what is absolutely necessary. Under this belief, you are minimizing costs but making things harder for yourself.
Surprising to some, hiring two great people instead of four good ones, is usually a lower wage cost. At the same time, your company is improved.
The methodology to follow to accomplish this is called Topgrading.
You get what you pay for.