Attending to Your Employees’ Needs Gives Your Company a Financial Edge
Attending to folks’ needs has been found to benefit companies in multiple ways. A new report, “Performance through People: Transforming Human Capital into Competitive Advantage,” analyzed 1,800 large companies across 15 countries and found that a dual focus on attending to folks’ needs and developing people gives a select group of companies a long-term performance edge. These companies, referred to as “People + Performance Winners,” prioritise attending to the needs of their employees and through doing so achieve top-tier profitability at the same time.
The report found that companies that build human capabilities are more likely to propel their employees into higher earnings brackets over the course of their careers. Building human capabilities also pays off for firms in the form of more consistent company earnings and greater resilience during crises. People + Performance Winners have lower attrition rates, which is important when companies are facing hiring challenges.
People + Performance Winners have a distinctive organisational signature that challenges and empowers employees while fostering bottom-up innovation. This form of organisational capital contrasts with other top-performing firms, which tend to be more top-down and transactional, and creates a tangible competitive advantage.
In conclusion, attending to folks’ needs provides a real financial edge for companies. People + Performance Winners have demonstrated that by prioritising employee development, they can achieve consistent and resilient financial performance whilst surmounting staffing challenges.