When calculating the cost of a product or service, companies usually take into consideration a list of tangible and intangible aspects. Some elements are simple to determine as people can quantify them.
However, some factors are much harder to measure, as they don’t come with a real price.
The same happens when business leaders need to evaluate how much a team member worth.
Employers can use different methods to figure out the employee’s value based on productivity and revenue. But performance is not everything. There are other attributes leaders should examine to understand how relevant a person is to the company.
As declared by HuffPost contributor Matt Straz, “your employees are the most important part of your company and should be paid what they’re worth. If you don’t make them feel valued, they’ll find someone else who will.”
While setting the value of a team member, here are some aspects you should be looking at:
Motivation and high-performance. Do you know someone who likes to share new ideas and solutions with your group? Who keeps informed about what is happening in the industry and is not afraid to try? Usually, this is the kind of person known for delivering results consistently.
“It is no secret that employees who take initiative demonstrate greater productivity and are more likely to take risks that pay off,” declared Robert Half.
Emotional Expensiveness is how the international speaker on leadership & management Cy Wakeman addresses the cost employees generate to companies in terms of attitude.
“The emotional expensive or overly dramatic employee is draining. His or her dramatic existence is not neutral. It takes something away from everyone on the team and decreases morale,” she said.
Cy Wakeman developed an Employee Value Equation for those interested in finding out how much an employee worth using numbers.
Decision-making skills – Not all team members have the ability to make a judgment of two different scenarios and choose what to do about it. Many workers play it safe most of the time, and they end up not achieving great results because they can’t manage failures.
As reported by the Business Dictionary, “valuable employees also exhibit strong decision making skills.”
As stated on the website, “they are able to quickly and effectively calculate the benefits and drawbacks of two decisions and act accordingly.”
Reliability – It is not always easy to find people who want to stay longer in a company. But, more than that, they are willing to grow and help the organisation thrives. By being honest and open with the employers, they win the trust of the group.
Straz said business leaders need to make sure they recognize when a team member has been loyal. Employers should thank the person for the support she has given to the company and reward her with regular pay raises.
“Support your employees in a way that matches their value, and they’ll help drive your business to success,” added Straz.
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