I‘ve had a few interesting discussions of late regarding the subject of generating profits at the expense of an organization’s people.
So we have a baseline let me say unequivocally that I believe putting profits in front of an organization’s people is incredibly short sighted. You can “get away” with not taking care of your people for the sake of profits in the short-term. But if you’re goal is long-term sustainable profitability you must take care of your people first.
We have seen a ton of short-term profit driven thinking during the pandemic. As an example, many companies used the pandemic as cover to “eliminate the positions” of older employees. That may have even made some business sense but the savage nature of how they went about it did not.
Demonstrating without a doubt that you do NOT care about your people doesn’t just affect the people you’ve pushed out the back door. It dramatically affects those left behind as they have been given a preview of their future with the organization.
One of the clearest examples of the outcome of putting profit before people would be a little company named General Electric. Their leadership team was ruthless in driving continuous year over year profits. At least until they had so demoralized their workforce that profitability became impossible.
What companies that put profits above people fail to understand is that their profits come from customers. Customers interact with a company’s people. If the people who work for the company are unhappy it’s virtually impossible for them to make the company’s customers happy.
Profit first leaders somehow seem to fool themselves into believing that they alone are primarily responsible for their company’s profit. They are not. Let me repeat, they are NOT.
The other challenge of putting profits before people is that profit first leaders put profits not only before their employees, they put profits before their customers as well. They cut corners on customer service, they cut corners on product quality. They cut corners on caring for their people. Their drive for profits become all consuming right up until the point it consumes the company itself.
Here’s a simple question. As a leader of a company. Would you rather make one dollar a year for the next 5 years or would you rather make 90 cents a year indefinitely?
If you do not take care of your people then your people will not take care of the company. That has been proven to be true a million times over.
The fastest and surest path to long-term sustainable profits is people. Both the people who make and sell your products and the people who buy them. If you ignore and or abuse either one then you may make a buck today but you won’t have two pennies to rub together tomorrow.
And that my friends is a fact!
One thought on “Profits Before People?”