Our Most Valuable Resource

There is a meme that has been circulating on social media for the last few years. It says:

When organizations experience financial issues the first things to go are training and development. A freeze is put on conference attendance, educational benefits are cut or curtailed and a bunker mentality takes over the organization. This is, to me one of the most counter-intuitive approaches to addressing financial issues in organizations – in any sector.

At a time when organizations need innovation and new approaches we stifle our employees by eliminating the very things that can spur a new approach to dealing with resource and capacity issues.

In any organization (except maybe Apple) resources are finite. Any good CEO pays careful attention to the stewardship of resources – especially human resources. An organization that does not view human resources as its most important resource is most likely an organization you do not want to work for. Companies that put people first generate a host of benefits that allow them to operate successfully in good times and bad.

Costco is a shining example of a company that recognizes the role of employees in creating a profitability. They pay a wage well above average retail compensation, have profit sharing, health benefits and pension plans. Turnover is low and employees have job security and opportunities for advancement. Costco invests in their employees and are rewarded for their investment. This type of approach has not gone unnoticed.

In August Jack Kelly of Forbes magazine reported that 160 CEO’s of major corporations signed a statement that included this:

“Investing in our employees. This starts with compensating them fairly and providing important benefits. It also includes supporting them through training and education that help develop new skills for a rapidly changing world. We foster diversity and inclusion, dignity and respect.”

These CEO’s see how putting people before profits ensures profit for shareholders and the long-term sustainability of their organizations.

How does this translate to the non-profit sector where wages tend to be lower and the motivation is good service to your clients/consumers? Exactly the same. I have had the privilege to conduct accreditation reviews in dozens of organizations across Canada and the United States. My own observations backed by countless research studies show higher client satisfaction rates, lower turnover and happier employees in organizations that treat their human resources as their most important resource. Wages are important but people put equal weight to being trusted, engaged and respected by their employer.

Which brings us back to the question: “What if we invest in our employees and they leave?”

That is part of the circle of organizational life. My own view as a not-for-profit CEO has always been if we are doing our job right we are sending a person into the world with solid values and those values will benefit the organization which hires them. It also provides opportunity to bring in new people and advance current people – all of which benefits the organization. Turnover is not always a bad thing.

Currently in Ontario the not-for-profit sector is going through a forced transformation due to service cuts and service realignment. Storm clouds are on the horizon in the for profit sector as well. Think on the strategies your organization can employ to invest in your employees to help navigate the next few years. Solutions are not limited to senior leadership; they can be found in any employee. How you engage your employees may well determine how you survive in uncertain times.