Reasons to Start Investing in People

Employees frequently worry whether they are working in the proper environment, where they are neither overworked nor underpaid. Employees deserve a workplace where they are supported and have an opportunity to grow and excel in their careers. Recognition, respect, and appreciation are not only motivation tools that leaders can employ to cheer their peers up but also a necessity to establish a workspace that employees deserve to work in. As a result, businesses must take the time to learn what a good work environment means to their employees and why they must begin investing in people. Hence, social impact investor Warren Valdmanis discusses why businesses should start investing in people and how this will benefit them in this episode on the TED Business podcast.

A “good” job, according to Warren, is one that corresponds with worker productivity and helps us construct better businesses. A job may be labeled as “good” only if a person is treated fairly, has a promising future, feels psychologically safe, and has a feeling of purpose, according to Warren. Unfortunately, the majority of work possibilities do not meet this criterion, and only a small percentage of them positively influence their employees. All of these elements play a significant part in businesses realizing the need of investing in people. The first and most crucial aspect is that being appropriately treated is vital because it creates a great work atmosphere, but it is also something that all employees deserve. Being appropriately treated, in his perspective, entails more than just paying people decently. It is only one of the factors that goes into being treated fairly. Other perks, flexibility, incentives, and exceptional mentorship, on the other hand, play a big influence in making employees feel like they are being treated fairly. He goes on to discuss the second reason, “having a hopeful future,” as a critical component that enterprises must comprehend in order to understand why they must begin investing in people. An organization with a bright future is one where personnel is effectively mentored. This not only broadens their knowledge but also positions them as a valuable addition to the firm, allowing them to further their careers. This increases employee retention and engagement because they view work as a chance to develop and learn rather than a place where they must meet deadlines and expectations. Warren emphasizes that psychological safety is one of the most significant variables that lead to firms making attempts for investing in people, pointing to a pretty clear issue. Without a doubt, workplaces must provide a psychologically secure environment for employees so that they may express themselves, exchange great ideas, perform successfully, and provide excellent customer service. The last criterion, “having a sense of purpose,” aids employees in being committed and engaged to their job, which is helpful to the business since work is completed efficiently and with a goal in mind.

Apart from investing in resources, technology, infrastructure, and a variety of other things, businesses must recognize the value of investing in people, as explained by social impact investor Warren Valdmanis in this TED Business podcast episode.