As a recovering accountant, one phrase senior leaders often say as a toast (which makes me chuckle) — usually with a glass held high — is, “People truly are our greatest asset.” While this statement will bring those who work in Human Resources to tears, I often wonder if the Finance folks are thinking, “But they aren’t on the balance sheet, as we don’t own them.”
We appreciate the rhetoric, but unless you work for a sports team, employees aren’t recorded as assets. In fact, labor is a very expensive expense with future liabilities attached, such as vacation accruals and pension obligations.
Essentially, the business of sports works because they actually buy and sell players. They aim to buy low and sell high — or buy high and yield massive income from that player’s presence through ticket sales, merchandise and sponsorships prior to selling the asset at some point in the future. When a team eventually sells a player, they record a profit or loss on the disposal of that asset relative to the price they paid for that player initially.
This parallels the regular working world because here’s a challenging thought: If you’re an employee, were you a “good buy”? If you left today, are you worth more than when you started? Has the business derived significant income from your labor? Did you drive sales or manage expenses? Ultimately, what is your return on investment (ROI)?
The soccer team I follow in England is Birmingham City. Last season in League One, they earned the highest number of points recorded in English Football League history. Their coach, Chris Davies, was heralded as a hero, and the players were worshipped by the fans. The team finished at the very top of League One last season and were promoted to the Championship League. But this season has been a very different story.
With few games left, they sit below the halfway mark. Rumors suggest ownership is thinking about firing Chris Davies, and fans are divided about last season’s hero. I’ve also noticed that very few players from last season are even on the pitch now. So much change, so quickly.
The workplace parallels are clear. Managers are hired for results; if they don’t deliver, senior leaders and ownership start to get concerned and tough conversations ensue. A manager might be doing a great job, but if the team underperforms, they may need to take them off the field. They might hire a coach or invest in training to ensure the team wins at the “game of work.”
In healthy organizations, change is the only constant. Today’s global competition means yesterday’s playbook may not be the right one for today’s game. It’s a tough way of thinking about the workplace but just because you have a place on the team this season doesn’t mean you should bank on being on the team next season. You have to earn your shirt.
Conversely, I have observed unhealthy organizations slip down the league table and risk relegation because, instead of focusing on winning statistics, they focus on maintaining the static. They prefer the comfort of the status quo over the discomfort of growth.
Tenure can measure loyalty, but is length of service always a good thing? I’m not sure. I know of employees who just received 30-year awards but stopped contributing a decade ago. Why did they stay if they’re so unproductive? Well, the pay is good; there’s a salary bump for each year of service, and the pension pot keeps growing.
Why were they not challenged to be better players? Often, managers avoid the hassle if there isn’t a “whistle being blown” above them. If ownership doesn’t want to reach the “Premier League of Work,” why trouble the troops? In the competition called the Workplace League — mediocrity is a fast-track to failure or acquisition.
Ultimately, whether you are a manager or a frontline player, the goal is to remain an appreciating asset rather than a legacy cost. If you want to avoid being relegated to the sidelines, stop measuring your value by the years on your clock and start measuring it by the scoreboard. Don’t just settle for tenure; play for the promotion.
Paul Butler is a Santa Clarita resident and a client partner with Newleaf Training and Development of Valencia (newleaftd.com). For questions or comments, email Butler at [email protected].
