The Payoff of Investing in People

the payoff of investing in peopleSomeone once asked us about their dilemma about investing in their staff or focusing on business results during a tough time.

It’s not an easy situation for any organization to be in. A business needs to survive. If you aren’t making any money, you can’t support the employees or serve customers.

When a listener sends us a question, we don’t often hear how it turns out. This episode updates what happened when we answered a listener’s question about investing in people.

If you are faced with a challenging situation in your organization, the best thing you can do is be upfront with everyone. Let them know what the organization is going through and the impact it is going to have. Create the feeling that you are all going through it together, and let as many people as possible offer input and ideas.

Investing in people had a big payoff for the listener who gave us the update. They took the short-term hit to the bottom line to make the long-term investment in their people. He was promoted to president and promoted three of his people to Vice President. Usually, when times get tough, the first thing companies do is pull back from what they offer to employees. Instead, this company discovered when you take care of your people; they will take care of you.

Every situation is different, but you will make the right decision if you lead with empathy and discipline. The key is to invest in your team before there is a crisis. If you are already taking care of them, they are more likely to be committed when there is a crisis.