The Number One Asset – Retaining new and young workers

How often do we hear that our number one assets are our employees? This often bandied about term has become so prevalent in industry that we are hard pressed to bring meaning to the term “number one asset”.

Is our number one asset more important than our number two assets and how do we measure worth? On paper our buildings and land may be our most expensive assets however we can easily fall into the trap of measuring worth only by dollar value on our balance sheet.

Our most expensive asset, a building for example, seems to heavily outweigh our employee’s worth.

When we look at our payrolls we can see how much our employees actually cost and although our payroll may account for a large percentage of our expenses it may be hard to look at a new and young worker and see them in the same light as our capital acquisitions. It is much more problematic to measure the cost and depreciation of our staff.

I was recently at an auction. A high-end cabinet shop was on the blocks. Everything was up for sale from hardwood to dust collectors. I inquired to the auctioneer as to why the sale? Apparently the shop had lost its designer and visionary. The loss of this one key employee had slowly eroded the companies standing. Even though the company was equipped with all the latest equipment and staff to run them the business had still failed. With no succession planning and no thought on how to mentor the new and young workers the shop was totally dependent on just one key employee. Without someone stepping up to take the helm the boat had sunk.

On paper it may not seem to be that any one employee could be as valuable as that shiny capital acquisition however collectively without the trained staff working to keep it running, the acquisition becomes nothing more than a glorified dust collector. Without a skilled worker the equipment sits idle and useless- not producing. Retaining workers whom we have invested both time and money becomes vital to long-term success.

We constantly upgrade our equipment. We maintain our assets and work to improve their operation. Take a vehicle for example. How much money and time do we spend keeping them running? Oil changes, tires and regular maintenance quickly add up compounding the costs –often without taking into account the staff time needed to schedule and organize the work. We can quickly look at our spreadsheets and measure cost and depreciation on equipment but employee investment can be harder to measure.  We tend to ignore any staff maintenance until our employee’s leave or other “personal issues” arise.

It is easy to look at our HR records and see the training or courses taken but much harder to compute ROI on personal development and growth.

Mentoring programs are often looked at as unwieldy and hard to manage. Many businesses view programs as something only the larger organizations implement. The word “program” can invoke fear in even the most progressive business owner however it may be as simple as a dedicated commitment and a concentrated effort on the part of the senior team to change the culture of the workforce. Actively looking to provide the care and “maintenance” to help the team grow and prosper will drive profits and increase company worth in the long term. A mentoring focus benefits both the mentors and the mentees. Pride and a feeling of belonging to a company that “cares” pay dividends both in retention and production.

• Define purpose: Be clear to what you hope to achieve through mentoring. Plan for retention and engagement.
• Include your number one assets in the conversations- transparency is vital.
• Plan to culture a place that everyone feels like they belong. Consult with all stakeholders.
• Redefine your mission statement- is it clear or does it include vague and ambiguous wording? Is management consistent with the vision?
• Allow the mentoring process to be organic- One that can change with the needs of the industry and the company.
• Access experts, information and guidance are available to develop alternative points of view and build capacity.

We send our mechanics for the latest training but how much time and effort do we spend on the mentors and supervisors that influence our staff? How have we invested in positive models for our biggest influencers? We need to be constantly looking for ways to improve the workplace. Are you providing the young workers with the new version of management- the updated copy, the one that will engage, stimulate and retain them?

When we invest in our employees and focus on their continuous learning and growth we will create a new workplace- a progressive and dynamic workplace. If we really believe that our staff is our number one asset then we need to treat them like they are valuable- like that shiny capital investment. 

The time we invest and the care we show will help our staff be all that they can be and will end up benefiting all. With a focus on mentoring and retention the company will continue to realize growth and prosperity both now and into the future.