Question

How can a manager balance the cost of an employee against the asset they are? What are some ways in which they can empower their employees as assets rather than an expense?

Answer 1

Solution:

The manager needs to understand the capacity planning and staffing exercises for the same. A manager known how much an employee is costing to the company. Hence, the manager need to understand various tasks that the employee can perform to generate a certain degree of value. The employee is paid in money for the services they offer, the manager need to understand and identify the areas where the services of the employee will be a best fit and then leverage the skills of the employee for that particular service. Hence, in order to match the cost to the company and the revenue an employee brings to the company the manager need to focus on the aspects related to the job of an employee and approximately measure the value that an employee is generating for the business against the cost an employee is to the company.

Some of the ways in which managers can empower the employees to take the maximum benefits from them as assets is to keep the employees motivated to strive higher for promotions and better career prospects. With such an intrinsic motivation the employees work hard for achieving their objectives and hence helping the manager make the most of an employee in terms of creating value and costing to the company. Also, the manager can allow the employees to take on certain authority to perform a tasks which may give an employee a sense of belonging with the organization and hence working harder for the job.

Hence, with these ways the managers can utilise their employees in a much better way as assets than making them liabilities for the business.