When your biggest asset is also your biggest risk

We have all heard the saying ‘Employees are the most valuable asset to an organisation.” Anne M. Mulcahy is quoted as saying “Employees are a company’s greatest asset – they’re your competitive advantage. You want to attract and retain the best; provide them with encouragement, stimulus, and make them feel that they are an integral part of the company’s mission.” There is value to this argument. In many cases, employees are the window to the organisation, the first point of contact, and are part of the organization’s brand.

Stakeholders form an assumption of the culture of an organization and the dominant leadership style within it after observing or interacting with employees. Customers determine how employees are treated based on how employees treat them. Richard Branson is quoted as saying “I have always believed that the way you treat your employees is the way they will treat your customers, and that people flourish when they are praised.” Employees will either show or tell customers if they are treated as valuable assets or just means to profit. They will show or tell whether they are engaged and driven or disengaged and obligated.

Employees are either marketing assets or marketing risks. They are the organisation’s primary marketing agents. They either brag about the organisation they work for everyday to their family, associates and customers, or they complain about it. This feedback creates perceptions in the minds of the hearers on whether they will support the business or take their business to the competition. SocialHP, in an article about employee advocacy is quoted as saying “The conversation your customers and prospects have with your employees shape the way people feel about your company.” I recall some years ago hanging out with a group of friends. As we discussed options of where to eat, one of my friends lamented that he will not eat at a certain restaurant because it was part-owned by the CEO of the company he works for. My friend’s experience under that CEO’s leadership was significant enough to affect his life time value as a customer to that restaurant, and as a result, affected our decision to support it, at least when we were together.

SocialHP revealed that consumers trust “people like themselves: 63% more than marketing team, and 70% of consumer brand perception is determined by the experiences with people who work there. I have heard stories of customers who shop at a particular online store, receiving clothing with “cry for help messages” written on the tags which had led to them taking their business elsewhere. I have had several experiences, especially at restaurants, of employees encouraging me to take my business to the competition. I recall once an employee whispered to me that the chicken was stale. On another occasion, an employee volunteered that she does not eat from the business. Just recently, an employee volunteered that the owners at a particular business were verbally abusive to the staff and difficult to work for. The business success is hinged on employees’ emotional connection to the organisation.

Whether it is a small corner store, a medium size business, or a large multinational, multifaceted organisation, the business success is determined largely by the consistent hard work and dedication of employees. Owners may provide the resources to get the business started, they may have the grand idea but employees are either an asset or a risk to making the dream a reality.

McLean & Company an HR research and advisory company, in a 2024 HR Trends Report, revealed that according to a survey conducted by the American Management Association, 66% employers detected misuse of company resources and 29% of employees were using company resources for personal gain.

Employees can either be good stewards or bad stewards. Good stewards are employees who are engaged within the organisation and therefore have an emotional commitment to it. They take ownership of the company and behave as though they are investors who are desirous to see the business do well. They give their heart and soul to the organisation, they are builders and help to carry it to success. On the other hand, bad stewards are disengaged employees with no emotional commitment to the business. Often they have a chip on their shoulder and will do anything to get out of the company more than they put in. Bad stewards are takers and breakers and are a risk to the organisation’s success.

In an article titled “A winning business model: Why employees are your greatest asset.” Jill Chapman, shares seven tips to show employees that they are assets to the organisation: “Show employees how their work affects business outcome, model trustworthiness, invest in employees, encourage team members to try new things, build a strong community, let engaged employees innovate and clear a path for your team’s success”. Organisations lose business every day because they do not treat their employees like customers.

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