A company’s biggest asset is its employees. Your staff is also your most important customer as it serves as the face of your brand. You hear a lot about ROI, but another important item that factors into a company is ROEI, or return on employee investment.
The difference between a good company and a great company is what defines the company – its people. People generate ideas and make good service happen. Strategic investments in a company and its employees can make a huge contribution to the bottom line.
As a manager, you must make a choice and weigh the options when it comes to expenditures. For example, at OffWhite, we continue to invest in technology and access to the most current versions of software. It is a priority for us to keep everyone up the curve, making doing our jobs each day the best it can be.
You need to look at your employees and optimize your workforce by making investments that prevent unnecessary or costly expenses such as constant turnover and excessive sick leave. It is a much better move to make the investment which will not only eliminate some of those expenses, but will also boost employee productivity and keep your employees engaged.
Investing in resources and training for your workforce also results in more productive employees who can accomplish more in less time. With a strong employee retention plan, fewer employees are needed to complete the same tasks.
The strategic and balanced investment in your employees will go a long way towards improving the company bottom line. Making the investment in your employees will give them more of a sense of ownership in their work. It makes the employee feel more vested in what they are doing and more engaged in seeing success. And you know a happy employee – an employee who has ownership in the contribution they are making because those investments have been made – makes for a valuable, long-term employee. That is an asset you cannot do without.
As most of you are working on budgets for next year, now is a good time to add ROEI into your thinking and plan if you haven’t already done so. What kinds of investments do you currently make in your employees? Are there more investments that would be beneficial?