It’s About The People
We establish companies to create, to realize dreams, fulfill life goals, and generate income. From the moment we start a business, we’re immersed in work, continually measuring and comparing, calculating profits per share, per hour, per worker, per machine…
Owners and managers create analyses, look for ways to cut costs, and increase revenue and profit.
We eagerly await quarterly and annual financial statements, liquidity accounts, various business performance indicators, counting and verifying assets and employees.
The human resources department reviews the number of employees, their qualifications, age, average earnings, and workforce turnover.
Owners read all these reports and impatiently look for conclusions and recommendations, searching for mechanisms to increase profit (primarily).
Let’s assume we’re talking about an averagely successful European company in any industry, meaning it has quality work equipment, uses modern technology, and employs qualified workers.
Most business professionals carefully follow developments in their industry, keep up with modern trends, and lately, we’ve all been talking about artificial intelligence and thinking about how to leverage its capabilities. However, many do not pay enough attention to the natural intelligence that surrounds them, namely their employees.
There’s no need to turn to artificial intelligence if you’re unable to understand its natural counterpart. Take things one step at a time.
The balances and indicators I mentioned often lack quality analysis of human resources potential, pay no attention to the organizational culture and climate in the company, and lack anything that could be called an employee satisfaction indicator. Of course, there are well-organized companies that take care of their people and improve the position of their employees, but a significantly larger number of companies neglect this aspect.
I often hear from friends and business partners that they recognize the importance of focusing on their employees. However, they struggle to address this effectively as they are preoccupied with client issues and the need to boost earnings for upcoming investments. As time slips by—a year or two—owners remain distracted from the needs of their people. Consequently, some of the best workers leave, and business performance falls short of expectations. “We lack good workers,” my contacts often comment. Sometimes, I remind them of the potential causes of this dilemma and other times I hold back when I sense they recall our earlier discussions.
Therefore, it is crucial to give your employees the attention they deserve.
Those who are satisfied with their jobs are the ones who can truly enhance productivity and streamline business operations.
So, pay attention to the satisfaction of your porter, driver, analyst, and developer; consider their communication styles and how managers treat them. Above all, the responsibility rests with you, the company owners, to establish a value system that respects and protects your employees, rewards good performance, cares for their well-being, and supports their continuous improvement.
This is where your strength lies, it is an inexhaustible source of new ideas, income, and profit.
And when you make a profit, don’t take it all for yourself, don’t distribute bonuses solely to top managers.
Consider sharing a portion of the profits with your hardworking employees, particularly those who consistently perform their duties diligently and without complaint.
Written by Mladen Miranović
