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Employees Aren’t Annual Costs — They’re Long-Term Investments
Companies should treat people like the critical assets they are
People are the foundation to a successful business. One that will be resilient. One that will continue to expand its moat over time by outmaneuvering its competition or disrupting itself before competitors do. The people will be the ones who deliver the best customer service, build game-changing products, and craft systems to make the appearance of “cost efficiency.”
Yet, many are confused about how they can measure this. I’ve spoken to 100-plus companies and professionals in the startup ecosystem in Canada and one of the biggest points of concern I hear is: “Sure, I get it. But how can I measure this return on investment?”
I respond to continuous objections with: “You will see it in higher returns on invested capital over the decades you operate the company.”
Of course, what they are telling me is that they can’t invest in their people with a 10-year time horizon. The answer they wanted from me was: “Here are the 10 things that will happen with 80% certainty that will generate X% gains to your top and bottom line in the next quarter.”
And I get it. The company may have investors who are fixated on quarterly financial growth and don’t…
