Business Owners make more money with an effective Human Capital Strategy!

 For centuries we have known that leading and motivating employees in a positive way results in a better place for everyone to work.  It also drives greater revenue and profits for the business.

A 1994 Harvard Business Study of 435 public companies showed that companies rated in the top 10% of Human Resources practices had 3.66 times higher revenue per employee than companies rated in the bottom 10% of HR practices.  Annual studies by the Insperity Mid-Market group of the top 100 best places to work in the United States shows these companies out produced and out gained the Dow, NASDAQ and S&P.

 How does this work?  A simple formula.

 A persons total capacity for work, TC, equals their minimum required work, MR plus discretionary effort, DE.

 TC = MR + DE

 As a business owner you can demand MR.  Your employees choose to bring DE.  How can you help with this decision?  Here are the best practices:

• Align employees with business strategy
• Improve employee engagement
• Improved performance management
• Align compensation with goals
• Improve recruiting and retention
• Reduce the cost of benefits compliance

 I will expand on these practices in future articles.  Email me at broh@dfwbusinesspro.com if your business can’t wait.