The Importance of Investing in People


Last Updated on April 8, 2016

In the world of business, one element is above all – money. Without it, how would a business push forward? One can say that it is the main reason a business exists. Of course, many people work towards making the business flourish, but it is mostly and primarily because all of them would want to make a living. From the top of the corporate “food chain” (where the CEO and founder/s are) to the lowest areas where entry-level employees and staff converge, working because of monetary support is always the case.

But what really drives a company? What makes the business work? The founders are there to start all of it, the executive division is there to manage and direct it, and of course, the manpower is there to make it work.

The Importance of Human Resources

It’s the people who make the company.

The employer-employee relationship in a working industry is a mutual bond. The employers are there to manage and supervise the employees, while the employees are there to accomplish all the tasks required to make the company keep advancing. If the employers are the mind and soul, the employees are the heart and body of the industry.

Imagine a small noodle shop business consisting of the owner (employer) and a cook (employee). If the owner decided to stop paying the cook, would it be wise for the cook to keep working there? Would the cook even be happy to work there in the first place? In a very bad case, the cook might even do something that can harm the business’ reputation, and then go on to look for a better job. The noodle shop might then close, which leaves its owner broke and unhappy.

Happy Employees = Dynamic Business

If the employee is unmotivated, it would affect the business greatly in a negative way. Had the owner of the noodle shop continued paying the cook, the shop wouldn’t have closed down and things would’ve been better for the owner and, perhaps, the cook. That’s why human resource development is a very important part of the business. Among many other things, its goal is to find ways to motivate the workers so the company can function.

Following the idea, one can safely say that companies should invest in motivating their workers to boost productivity which, in turn, make the company grow. The human resource development handles these types of things, and is focused on certain points that help the employees like what they are doing.

Keeping Employees Happy


There are several factors that contribute to employees’ level of satisfaction with the company, such that they’d stay and continue to be productive. Here are some of them:


As mentioned earlier, one of the main reasons a person works is money. If an employee is not satisfied with what he/she is earning, a decision to look for another job or company might not be too far off. A company should take into account how much it should pay its employees. Considering the type of work; the work load; and the employee’s capabilities, experience and credentials; reasonable salary and appropriate benefits must be provided.


There are a number of things that can drive motivation. Whether they are simple things like schedule, environment, company reception, or more complicated subjects like personal affairs, legal matters and unforeseen events, companies should take these matters into account and act accordingly in order to motivate the employees.

Job Security

One important point to consider is how secure a person is with his/her job. People always take into consideration how long they could be working for a certain company. The stability of the business is one important factor that is, in one way or another, up to the employees as well as the employers. No one would want to work in a company that is closing down.

Human Capital Priority

In a nutshell, human capital is a term used to determine what a person has to offer. Investing in human capital can mean providing funds for a person’s education, training, and even medical care to make him/her be more productive at work. An employee with outstanding performance in the company is always an asset. As the old saying goes, “Diamonds are not found, they are made.” Thus, prioritizing human capital over the “product” itself can often reap better rewards.

Career Growth

A person pursuing a career path normally wants to move higher. Like a child with high hopes and big dreams, an employee also has aspirations on a profession, which usually involves moving higher up the ranks.

There are different ways a person can be promoted. Different companies have different systems of promotion and career growth but the good ones always keep in mind the employees first before the company itself. After all, if the employees are fit to work, the company’s success follows.

With that said, it is imperative that companies should invest in motivating their workers to boost productivity. Without motivation, a person would lose the will to go on and eventually either stop working or move on to something else. A company that has employees with low morale and motivation would surely fail in the long run, no matter how good the management is. That is why human resource development is a crucial part of every business. Investing in people is as important as investing in the brand itself.

Tags: Business company employees human resources investing people

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