Loyal customers, visionary leaders and quality goods and services all influence success, but usually, a company's best asset is its employees. E mployees help promote a company's reputation and are often responsible for a company's success. They are involved with every element of a business, so employers are usually particular with the people they select to represent their company. In this article, we provide a list explaining why a business's employees are its greatest assets.
Why should businesses value each employee as an asset?
Companies that treat employees as important assets and nurture their talent increase their chances of success. Making employees feel valued and developing their talents maximizes their potential. Conversely, employees who know their companies value their worth are more engaged, productive and loyal.
10 reasons why a business's most valuable asset is an employee
Employees are the greatest asset for any business—from small companies to global business empires. Here are 10 reasons why employees are the most important asset in an organization:
1. They fill knowledge and skill gaps
Smart business leaders hire employees with knowledge and skills that complement their own. These employees can efficiently perform tasks that are beyond the leader's capabilities. They can also share their knowledge and skills with new employees so a company's shared understanding grows.
Read more: Knowledge Transfer Plans
2. They deliver goods or services to customers
Employees help connect customers to goods or services that businesses create. Some design, manufacture and test products to make sure they meet their company's exacting standards. Others interact with customers by answering questions and selling them products or performing services with a focus on customer care. Others collect and process payments to increase their company's profits. Employees linked to purchasing decisions impact the customer experience. They determine whether customers spread positive reviews to friends or family and spend money with a business again.
Related: Guide to Customer Service
3. They are the public face of a business
Consumers interact with employees when they engage with a business. They see employees' faces in stores and in advertisements, hear their voices on customer hotlines and read their messages on social media. These interactions shape the public perception of businesses. If a customer receives a faulty product, for example, customer care staff correcting the problem can turn that negative experience into a positive one.
Customers also naturally connect with people more than corporate entities, so humanizing a business through employees is vital for fostering customer connections. The personal touch of a business's employees encourages trust and brand loyalty.
4. They often become natural ambassadors
Many employees become natural ambassadors who promote their company to family members and friends. When businesses treat employees well, those employees might correct negative perceptions of a business others might hold. As people usually trust the opinions of those they know more than other forms of marketing, an employee who speaks positively about the company they work for can be a valuable asset in an organization. The positive words of employees can often encourage others to try a business's products or services for the first time and return to shop with them again.
5. They understand the business and its customers
Employees understand the business they work for and its customers better than most people. Employees interact with customers daily, so they understand what consumers want and how to deliver it. They also regularly use their business's systems and equipment, so they know what works well and what needs refinement. Department managers can identify and promote the efforts of motivated and talented employees that may go unnoticed by a company's management. Business leaders can use employee insights to improve the overall structure of their business.
6. They drive profits
Dedicated employees help businesses increase profits by boosting sales and reducing running costs. Employees develop products and services, promote them and sell them to consumers. Quality control efforts and friendly customer care can convert a casual consumer into a regular customer. Employees also often identify cost reduction opportunities that can further boost profits.
Read more: What Is Profit and Why Is It Important?
7. They drive innovation
Employees often bring new ideas and skills that can help motivate a stagnant business. They develop new products and services and refine business operating procedures. Developing new products and services helps businesses stay relevant and appeal to changing consumer needs and wants. This is particularly important for businesses in rapidly evolving industries, such as fashion and technology. Improving operating procedures helps businesses become more efficient and save money.
Read more: What Are Innovative Thinking Skills?
8. They attract new employees
Great employees nurture a business's culture and make their companies a great place to work. When employees are happy at their place of work, they often talk to others about their experience. This positivity can make employees an efficient and cost-effective asset for recruitment. Many people search for employee ratings and reviews during their job search. When a business's employees give favorable reviews, quality candidates are more likely to consider that business for their next position. Many people are also more likely to apply for jobs after positive referrals from family members and friends employed by the same firm.
9. Their uniqueness is irreplaceable
One of the most important assets a person possesses is their uniqueness. This uniqueness ensures that, unlike most company assets, each employee is irreplaceable. Businesses that lose customers can find new ones to spend money, a supplier's products may get substituted with products from competitors and profits lost can be recovered. However, each employee brings a special blend of skills, knowledge and personality to a workplace. This combination impacts a business in slightly different ways. While businesses can fill vacant positions and train new staff members, the unique makeup of each employee is impossible to replicate.
10. They help businesses grow and endure
Businesses rely on their employees for growth and longevity. People who start a company need employees to increase their workload capabilities and expand their operations to new locations. When it's time for company founders to pursue a new venture or retire, they rely on their employees to continue their legacy and keep their business operating effectively in their absence.