An important article by expert Scott McKain discussed the difference between how two companies look at the value of a similar position.
March 21, 2013
What’s your initial, gut-level reaction to this question: Are your employees primarily an asset…or an expense…to your business?
A very interesting article recently explored both sides of this concept. Quartz recently reported:
- The average American cashier makes $20,230 a year, which in a single-earner household would leave a family of four living under the poverty line. But if he works the cash registers at QuikTrip, it’s an entirely different story. The convenience store and gas station chain offers entry-level employees an annual salary of around $40,000, plus benefits.
- Those high wages didn’t stop QuikTrip from prospering in a hostile economic climate. While other low-cost retailers spent the recession laying off staff and shuttering stores, QuikTrip expanded to its current 645 locations across 11 states.
The critically important aspect is this: If you see your people as primarily an expense — then, that expenditure becomes something we need to minimize. In other words, we’re taught in business that profit comes from, in part, reducing expenses. The more we keep our expenses in check, this basic theory of business goes, the greater the likelihood we will become more profitable.