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Your Riskiest Most Stressful Investment You Continually Make in Your Business

January 9, 2020

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Photo by NeONBRAND on Unsplash

Unfortunately, too many business owners see this investment as a cost.  It’s even listed in their accounts as a cost, an overhead.

If you haven’t already guessed it, we are talking about your payroll.

It’s most likely your largest continuous investment.

We look after our investments differently to our costs, don’t we?

We seek to enhance and build up our investments, whereas we seek to minimise our costs.

If you have a share portfolio, you are always looking for improvement in quality, risk optimisation, dividends and so on.

If you have property, you make sure it’s insured, maintained and enhanced.

If you have livestock, you make sure you feed them well, inoculate them, keep them content and flourishing.

What about your payroll – your employees?

How do you protect and enhance that investment?

Have you ever experienced the stress about the uncertainty of making the next payroll?

Isn’t it true that for most of business owners, our employees do the bulk of the work that earns the revenue, covers payroll and other financial needs of the business?

What do you do to protect that investment?

That investment gets weakened by these:

  • employee turnover
  • employee disengagement
  • under-performance
  • diminished productivity
  • undesirable culture
  • under-developed leadership and supervision

Some statistics about your payroll investment

Here are a dozen interesting statistics about your biggest continuous investment (from an article written by Elizabeth The on Rise in December 2017 – nothing much has changed since then):

  1. 36% of businesses see engagement as a top challenge. (Globoforce)
  2. Organizations with high employee engagement outperform those with low employee engagement by 202%. (Business2Community)
  3. 37% of engaged employees are looking for jobs or are open to new opportunities, as are 56% of not engaged employees and 73% of actively disengaged employees. (Gallup)
  4. Disengaged employees cost organizations between $450 and $550 billion annually. (The Engagement Institute)
  5. Belief in senior leadership is the strongest engagement driver, with growth and development as the second. (Modern Survey)
  6. Employees who use their strengths, skills, and abilities every day are six times more likely to be engaged at work, 8% more productive, and 15% less likely to leave their jobs. (Gallup)
  7. Employees who feel their voice is heard at work are 4.6 times more likely to feel empowered to perform their best work. (Salesforce)
  8. 93% of employees say they’re more likely to stay with an empathetic employer. (Businessolver)
  9. 70% of employees say that motivation and morale would improve massively with managers saying thank you more. (Reward Gateway)
  10. 85% of employees said they were likely to stay longer with an employer that showed a high level of social responsibility. (Ultimate Software)
  11. Highly engaged business teams result in 21% greater profitability. (Gallup)
  12. Companies with engaged employees see 233% greater customer loyalty and a 26% greater annual increase in revenue. (Aberdeen)

So, what can you do to protect and enhance that investment?

Here are some core actions I help my clients with, to protect and enhance that investment:

  • Help leaders rapidly coach for the right culture (it is the biggest determinant of reliable performance and rewarding productivity).
  • Help leaders to identify the disengaged individuals and help them rapidly re-engage.
  • Help leaders find and make the time to spend the right amount of time with their people.
  • Help leaders organise themselves to reduce stress in themselves and thus their people.
  • Help leaders make powerful investment choices in training and developing their primary asset – their people, ensuring an attractive measurable return on investment.

Why not connect with the right person or people who can help you protect and enhance your biggest ongoing investment in your business?

Ready for Action?

Book a chat with David
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