On the Road with ITR Economics

  • by itradmin - Thu, 09/21/2017 - 15:06

Your Most Valuable Asset

This week I attended an industry conference where a panel of CEOs discussed the factors they believed made their companies successful. These individuals, who had an average of more than thirty years of industry and management experience, consistently and unanimously talked about the people working for their firms as their most valuable asset and the main component in driving the success of their business.

I was struck by one CEO in particular who described his company's impressive performance over several decades as the result of "hiring smart and capable people, paying them well, and giving them lots of rope to run around and independently develop the business." His opinion was that without these talented employees, his business would not have succeeded.

Another CEO put it in even simpler terms, "You have to think of your employees as an asset. Investing in that asset through generous compensation and ongoing training will bring significant returns. On the other hand, if you think of your employees as a liability, and try to save money by cutting staffing costs, the damage to your business will be immeasurable."

I believe the comments of both CEOs are incredibly astute and critically important in today's tight labor market. An emphasis on staff retention and training is a vital component of a successful business strategy at all times, but it is of particular importance during periods of economic acceleration, such as the one we're in right now. Companies large and small must realize that their people are their most valuable asset and act accordingly. Failure to do so could result in disaster.

Alex Chausovsky
Senior Analyst