How to Maximise Employee Value

Image of Engaged Team

Author: Dean Hunter

Published: 9th February 2017

You pay each employee a salary every year for the services and skills they provide – so it’s important you make sure you’re getting good value for money. There are many proven ways to maximise the value of your workforce, and it all comes down to the fundamentals of HR; employee engagement and company culture which in turn boosts productivity and performance.

Productivity leads to profitability

Consider the daily output of your staff. If your business is in the manufacturing industry or sales, this is quite easy to figure out, while services based businesses will have to consider clients and workload. Now, if an employee could do their job more efficiently and was more engaged in their tasks, their productivity and output would increase. They would also be providing a better service to clients or customers, which will make them want to continue doing business with you.

A very productive employee and a not-so productive employee doing the same job gets paid the same salary. So doesn’t it make sense to get as much as possible for your money? Maximise employee value with a focus on productivity which leads to profitability for the company.

By following this HR strategy, you can maximise your return on human capital while additionally increasing output and revenue.

Focus on engagement

Only 36% of UK staff are actively engaged, which means most companies could do more in this area. There are huge profits to be made simply by engaging your workforce, so by focusing on this you’re making a worthwhile and affordable investment. Individuals respond to different methods, so you can’t expect to make one change and suddenly engage your entire workforce. Experiment with different engagement methods, from giving them extra tools and equipment to get the job done and testing different rewards and recognition.

Company values, missions, goals = culture

Engaged employees feel a connection to the company they work for, and the company values align with their own. Embedding sound values isn’t as easy as it sounds, especially as you need to try and reach every single staff member. The key is making employees feels like their work is valued and meaningful, and you should do this through communication. A poster of company values doesn’t really cut it – you need team meetings, newsletters and other channels to constantly deliver the company message. When you have separate teams it can help to have different objectives and goals, so everyone knows how their personal and team success is measured.

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