Excerpt: How Money is Spent is a Reflection of Values
As companies have moved into the employee, human-centric era, where company culture and relationship to leaders are key components, one operational consideration that many leaders grapple with is how to wisely spend money. Some are in a perpetual quandary about how much and on what.
And, by the way, some of these leaders are baby-boomers who’ve had a completely different work culture experience growing up and for those who’ve lead, a different sensibility about money regarding how and when it should be spent. This new human-centric era can challenge the values and beliefs these leaders hold dear and have contributed to their success.
However, what Marshall Goldsmith says really rings true, “What got you here, may not get you there,” (a title of one of his books). To lead these kinds of companies, the philosophy and values of their leaders must match the need. And that’s crucial, because it’s from beliefs, philosophies and values that decisions are made – particularly decisions regarding the use of money.
So in essence, how money is spent is a reflection of how a leader thinks and what is valued …and their understanding of how to maximize the use of money to successfully manage and grow a company. For example, do they see spending money on and for employees as a cost or an investment? There is lots of legitimate confusion here and that is the purpose of this briefing.
You’ll find this briefing particularly useful if you’ve ever said to yourself,
- “I know my leaders and managers need help, it’s just not in our budget right now.”
- “I’ve heard that coaching is helpful, but how can we really measure return on investment?”
- “We can’t afford training.”
- “Honestly, I think employee training is a waste of time and money.”
- “How do we determine the financial impact of our employee rewards program?”
What have you or your leadership team thought or said similar to these? They and many others are extremely common and appropriately so. The ways in which money is spent for employees, particularly in the area of employee training and development, has been difficult to measure, and for many, has not gotten the results and needed returns. Though the human resource/talent management industry is still attempting to address this, for now, there still is a gapping need to put these kinds of activities into a meaningful financial context.
The need to quantify and give tangible value to this spending, if not met, will continue to stifle the growth of some companies and substantially cripple it for others. I don’t wish that for any company and in fact wish great success for all.