People Might Not Be Your Greatest Asset in China
Your greatest asset in China may not be your people. That might be strange to hear from a guy with such a strong emphasis on leadership. However, great leaders and the highly motivated workers who follow them are your greatest asset. If you do not have that, then workers are not your most valuable asset.
Tom Deierlein at LinkedIn quoted Gallup to say:
- Only 30% of working population today admits to being fully engaged. Data suggests that is optimistic.
- 52% of Americans admit to being disengaged in their jobs.
- 18% to being actively disengaged.
- Gallup estimates that a disengaged employee costs an organization approximately $3,400 on top of every $10,000 of salary.
- We have all heard the axiom “people leave bosses – not companies”. Well, here is what happens when they leave: The cost to replace someone earning $50,000/year can easily reach $75,000. In fact, turnover costs you 30-50% of the annual salary of entry-level employees, 150% of middle level employees, and up to 400% for specialized, high level employees!
Gallup determined that well managed work groups are 50% more productive and 44% more profitable.
Bad hires actually cost you money every day month after month. No wonder that impacts your bottom line by 44%!
Invest in Hiring to Develop Your Greatest Asset
The LinkedIn article says you need to train your leaders and that is true. Of course, great leaders train up their people so everyone is always more productive. However, the best way to get it going is to hire great leaders.
You can be sure that I do not mean to hire people with the best resume though great resumes are not bad. I mean you need to hire truly great leaders at the top and at the work group level. What they are is less measured than it is valuable.
In management the wrong guy is the individual contributor. You need a force multiplier and then you will have your greatest asset . When your leaders are leaders first and individual contributors second, then you are looking at being 44% more profitable.
Are you ready to get that going?