At a time when human capital is considered a key resource for a company’s success, it is essential to understand how to value and meet the needs of employees.
In this article, we will examine the theory of value in relation to employee need and the importance of symbolic resources as a success factor for an organisation.
How is the theory of value defined?
The labour theory of value refers to the set of shared beliefs, principles, and norms that guide the behavior of members of an organisation. These values underpin the decisions made by the company and directly influence employee satisfaction, motivation and productivity.
Adam Smith, considered the father of modern economics, emphasised the importance of labour as a source of wealth and economic development. According to his theory, the value of a good or service is determined by the amount of labour required to produce it. Smith also emphasised the importance of the specialisation of labour and the division of labour, aspects that are still relevant in today’s business environment.
Building a successful talent acquisition strategy in the digital age is very important, which is why we have devoted an entire in-depth article to it.
What does Adam Smith’s invisible hand theory state?
Adam Smith’s invisible hand theory holds that the market, if left free to operate without external interference, will automatically regulate the allocation of resources and promote the general welfare.
However, this theory also has disadvantages, such as the possibility of generating inequality and instability in the market.
What do corporate values represent?
Corporate values are the fundamental principles on which a company bases its culture and identity. They influence employee behaviour and the way the organisation interacts with customers, suppliers and other stakeholders. Some examples of work values include integrity, respect, collaboration, innovation and social responsibility.
They are important for several reasons:
- Decision orientation. Corporate values provide a framework for strategic and day-to-day business decisions. They help to set priorities and make decisions consistent with the organisation’s vision and mission.
- Corporate culture. Corporate values directly influence the organisation’s culture. A strong culture, based on shared values, contributes to a positive working environment in which employees feel motivated, involved and valued.
- Employee involvement. Corporate values provide a sense of belonging and direction for employees. When employees share and adhere to the organisation’s values, they feel more involved and are more likely to contribute to the company’s success.
- Talent attraction. A company with well-defined and shared values is more attractive to potential employees and is more likely to retain existing talent. Employees who share the organisation’s values are more likely to stay long-term and grow professionally within the company.
- Image and reputation. Corporate values help define the organisation’s image and reputation both internally and externally. A company with solid and shared values is perceived as more trustworthy and responsible by customers, suppliers and other stakeholders.
Social responsibility. Corporate values can also guide the organisation in its commitment to social and environmental responsibility. A company that integrates these values into its culture and operating practices can have a positive impact on society and the environment.
In summary, corporate values are fundamental to an organisation’s success, as they influence culture, behaviour and decision-making at all levels. They help create a positive working environment, attract talent and enhance the company’s reputation and image.
How to value your employees?
To enhance the value of its employees, a company can take several actions, including providing opportunities for professional growth, promoting a positive working environment, recognising and rewarding outstanding performance and encouraging the active participation of employees in the decision-making process.
One of the most important roles within the corporate hierarchy to achieve these specific goals is the facility manager.
Valuing employees is crucial to the success of an organisation. When employees feel valued and recognised, there are numerous benefits for both them and the company. Here are some of the most important ones.
- Motivation and productivity: employees who feel valued are more motivated and productive. Recognising and rewarding their commitment and performance can encourage them to give their best and take on more responsibility, thus contributing to the success of the organisation.
- Involvement and loyalty: when employees feel appreciated and recognised, they are more involved and loyal to the organisation. This can lead to greater job satisfaction and a lower likelihood of seeking opportunities elsewhere, reducing staff turnover and the costs associated with replacing employees.
- Positive work environment: valuing your employees contributes to a positive work environment where people feel comfortable and supported. This can lead to better collaboration between employees, greater sharing of knowledge and skills and, ultimately, a stronger and more resilient organisation.
- Talent attraction: an organisation that values its employees is more attractive to potential candidates. People are more likely to join a company where they perceive that their work will be appreciated and recognised and where they will have the opportunity to grow and develop professionally.
- Improved company performance: employees who feel valued are more likely to be innovative and look for ways to improve their performance and that of the company. This can lead to continuous improvement in company performance and increased competitiveness in the market.
- Social responsibility: valuing one’s employees is also good practice from a corporate social responsibility (CSR) perspective. A company that takes care of the well-being of its employees and treats them with respect is seen as a responsible and sustainable company, which can improve its reputation and its relations with customers, suppliers and other stakeholders.
Valuing one’s employees is a crucial aspect of human resources management and the success of any business. Making employees feel valued can lead to increased motivation, productivity, engagement and loyalty, creating a positive working environment and fostering the long-term success of the company.
How to motivate employees?
Best practices to stimulate employee motivation include:
- the offer of company benefits
- the promotion of a constructive working dialogue;
- continuous training;
- developing a corporate culture that values well-being and work-life balance.
- Satisfied employees are a company’s best ambassadors.
Cost or investment?
Investing in employee well-being and satisfaction should not be seen as a cost but rather as a long-term investment. A positive working environment where employees feel valued and motivated can lead to higher productivity, lower staff turnover and a better company climate.
People are the engine that fuels growth and innovation, and dedicating time and resources to develop, train and support employees can lead to numerous benefits. Here are a few reasons why investing in human resources is crucial for business to thrive.
- Increased productivity: a well-trained and motivated employee is more productive and able to do their job more efficiently and effectively. Investing in employee training and skills development can lead to a significant increase in productivity and, consequently, to greater profitability.
- Improving the quality of work: investing in human resources also means ensuring that employees have access to the best practices and most up-to-date knowledge in their field. This translates into an improvement in the quality of work performed and an increase in customer satisfaction.
- Reducing turnover: a positive working environment and a strong commitment to employee support and development can help reduce staff turnover. Employee turnover can be costly, both in terms of time and resources, and a reduction in turnover can lead to greater stability and cohesion within the organisation.
- Leader development: investing in human resources also means identifying and developing the leaders of the future.
- Innovation: a company’s success depends on its ability to innovate and adapt to market challenges. By investing in human resources, companies can encourage creativity and collaboration, creating an environment in which innovative ideas can flourish.
In conclusion, it is crucial for a company to consider employee welfare as a priority. Investing in symbolic resources and meeting employees’ needs can lead to a more productive and sustainable working environment, ensuring the long-term success of the organisation. If you would like to learn more about how to enhance human capital in your company, please do not hesitate to contact us.