People Are Our #1 Asset… (or Are They?)

At a recent conference, I heard a speaker ask a series of questions that the answers to were obvious but in retrospect, head scratching.

?

• “How often do you think the average CEO looks at their financial numbers?”? [Audience: “Daily!”]?
• “How often do you think the average CEO looks at their operational numbers?”? [Audience: “Weekly”]
• “How often do you think the average CEO looks at their people numbers?”? [Audience: “Annually?”’]

?

DON’T TELL ME WHAT YOU VALUE…

?

Time and again, we hear leaders sing the same refrain, “Our people are our most important asset.”? And I have no doubt that in someway, they believe that to be true.

?

However, years ago I had a business coach say to me,

“Don’t tell me what you value; show me where you spend your time and money and I’ll tell you what you value.”?~ David Neagle

?

In other words, he wasn’t interested what I thought I valued, quite simply, because we fool ourselves all the time.? But he knew if he saw my calendar and my checkbook, what I actually valued would be in there.?

?

So, if we claim that people are our most important asset and yet look at our employee engagement numbers once a year (which happens to be lagging indicator; easy to measure but hard to change) are we really valuing our most important asset when it gets the least time and attention??

?

Of all the CEO’s I’ve worked with over the years, not one of them didn’t value their people.? The very fact that they invested in my services PROVED they were willing to put resources into their human capital.

?

And yet when pressure hits, it often leads them to reduce workforce-related expenses despite their claims that people, above all else, should be invested in.?

?

3? REASONS PEOPLE ARE NOT THE FOCUS

?

#1) CEOs Rarely Come Up Through HR.

A 2019 study showed that out of 100 CEOs, the majority came into their positions by way of these career functions:

?

??????? Operations (25)

??????? Finance (21)

??????? Engineering (17)

??????? Marketing/Sales (13)

??????? Accounting (11)

??????? Legal (7)

??????? Management & Consulting (6)

?

Given this list, should we really be surprised when CEOs and other leaders have as their main focus those areas of business they most excel in??

Very rarely do CEO’s come up through HR (even the two that quickly come to mind – Anne? Mulcahy of Xerox and Mary Barra of GM – didn’t start their careers as HR Professionals.? Mary was an engineering major and Anne worked in sales).

?

“Of note, in many cases, the early-career function chosen by the F100 CEOs is also the dominant function of the firm that they helm. For example, the Goldman Sachs, Liberty Mutual Insurance Groups, and AIG CEOs all started in finance-related functions. All three of these firms operate within the financial service space.” ~ Kimberly Whitler, Assistant Professor, Darden School of Business

?

Without their background being people and without the dominant function of their firm being people, is it any wonder that most CEOs focus isn’t naturally on people?

?

#2) People Are The Most Complex Part of Business.

Many times when staff engagement surveys come back less than stellar, leaders in their frustration will grumble, “They should just be happy to have a job,” as if having a paycheck is all that can reasonably be expected from work.

?

You don’t have to look very deep into psychology to find out what most people are motivated by.?

?

Let’s take the most widely known and accepted model of human drivers, Abraham Maslow’s “Hierarchy of Needs.”

?

This model is a psychological theory that describes the different levels of human needs.? The theory surmises:

?

• That human beings are motivated by unmet needs.
• That certain “lower” needs have to be satisfied first before “higher” needs can be focused on and satisfied.?
• Individuals may prioritize and pursue these needs differently based on their personal circumstances, cultural background, and life experiences.

Using the context of employment, the levels of the model would look like this:

?

>Physiological (Material): At the base of Maslow's hierarchy are physiological needs like food, water, and shelter.? Employees need a job that provides them with a steady income to meet these basic needs.

>Safety (Security): The next level in the hierarchy includes safety and security needs. Employees want to feel safe in their workplace, not just physically but also in terms of job stability; and where they won't be subjected to discrimination, harassment, or unsafe working conditions.

>Love/Belonging (Community): Above safety needs, there are social needs, which encompass the desire for a sense of belonging and social interaction. Employees want to work in an environment where they can build positive relationships with co-workers and supervisors.

>Esteem (Performance/Learning): Esteem needs involve the desire for recognition, respect, and achievement. Employees want opportunities for personal and professional development, opportunities for advancement, recognition of their skills and achievements, and a sense of accomplishment in their work.

>Self-Actualization (Meaning): At the pinnacle of Maslow's hierarchy is self-actualization, representing the realization of one's full potential and personal growth. Employees often seek jobs that align with their values and provide a sense of meaning and purpose.

?

So, if in a moment of frustration, we ever think our employees “should just be happy to have a paycheck,” what we are thinking is they should be content with the just their MOST fundamental needs being met.? I don’t know many people who are truly satisfied living at that most basic level, do you?

?

And because people are complex creatures with many needs, they bring a complexity to business that many CEOs and leaders do not feel equipped to deal with.?

?

• P & L Statements – make sense
• Customer Acquisition Costs – make sense
• Market Share percentages – make sense

?

Yet people, with their many complex needs and personalities, are a moving target.?

?

#3) People Problems Are the Most Uncomfortable to Handle.?

When we combine Reason #1 (CEOs rarely have an HR/people background) and #2 (People are the most complex part of business), it stands to reason that the human side of business can be the most uncomfortable part to deal with.?

?

In my years of helping organizations with people problems, and advising hundreds of? CEOs and business owners, this discomfort seems to come from three main places:

?

1. Fear of Confrontation: Addressing people problems can involve difficult conversations and potentially uncomfortable confrontations.? Some leaders may be uncomfortable with or?inexperienced in handling these types of interactions.? (Yes, even those who are considered higher Dominant in the DISC model!)
2. Time and Priorities: CEOs often have a wide range of responsibilities, including strategic planning, financial management, and external stakeholder relations. They may feel that they have limited time to address individual people problems.
3. Legal Concerns: CEOs may be concerned about the legal implications of handling people problems incorrectly, such as potential discrimination or wrongful termination lawsuits. This can make them cautious or reluctant in their approach.

?

It’s not enough to “know” that people are our most important asset.?

“To know and not do is to not know.”? ~ Laozi

We have to do better at prioritizing this human resource.? Fortunately, there are tools and resources that can help, as explained in the next article!?