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Are employees a commodity?

Are employees a commodity?

The commodity’s value can fluctuate based on supply and demand. Labor has often been seen as a commodity and is part of the equation when an employer puts value on an open position. Employers likely do not even realize this, but they often treat employees as commodities. Just like a commodity.

Why employees are not recognized as assets?

By definition, employees are not assets since companies do not have control over them. Workers must convert raw materials – be they commodities or blank computer screens – into finished inventory to be paid, but if these workers want to quit, they can take their skills and training with them.

Why do employers treat employees like slaves?

They are like slaves because their employer controls their time and their space. Many employees live in a state of perpetual anxiety about losing their jobs. The slave analogy is also relevant because employees do not feel management cares about their well being or gives them the authority to make their own decisions.

What is the difference between treating employees as assets and as investors?

But referring to them as assets implies some form of depreciation, when in fact, most employees increase their relevant skills over time, and therefore, grow in value. Employees should be treated as investors in your company. Investing in the success of your company ensures their own financial success.

Are employees assets or liability?

“Far from being a liability, the greatest asset any business has is its workers. And like any asset, your people need to be invested in.” But in accounting terms, Javid is wrong: Employees aren’t a liability or an asset on a balance sheet.

Why are employees assets?

Employees are major contributors to profits and worth of the organization. Therefore, employees are the most valuable assets an organization has. It’s their abilities, knowledge, and experience that can’t be replaced.

How do you treat employee assets?

Ten Simple Principles for Treating Employees as Assets

  1. Tell the truth.
  2. Make and keep commitments.
  3. Engage employees in key decisions and planning.
  4. Communicate that improving your job and quality is everyone’s responsibility.
  5. Focus on satisfying internal customers.

Are Employees investors?

Much like financial investors invest their discretionary income, employees invest their energy. Employees also invest their skills and talents. Employees spend time, effort and money developing their skills and specialized talents, and they are looking for a return on their investment.

Why employees are treated as assets?

They consider employees as an asset. In accounting terms, assets are company resources which have future economic value. Instead of seeing employees as a problem, these leaders see them as a valuable resource.

How are employees treated as assets or commodities?

More and more in the corporate environment the attitude of cutting costs has become predominant. We have started treating our employees as commodities as opposed to assets that they truly are. Employees are now interchangeable, replaceable and discarded. They are treated like plastic water bottles.

What happens when employees treat one another poorly?

The do as I say, not as I do approach doesn’t work. And when employees in your company are treating one another poorly, it will eventually be felt on the outside by the customer. It becomes a domino effect. Bad behavior begets bad behavior.

What are the advantages of not paying workers comp?

Not paying workers’ comp premiums or FICA can result in savings that add up to as much as 20% of each dollar passed through the plan. This advantage allows for premium increases to have less of a detrimental effect on workers. If a company’s medical premiums go up by 10% year-over-year, then a $1,000 cost goes to $1,100.

Why are employees treated like plastic water bottles?

They are treated like plastic water bottles. The employees are no longer there to be treated like a human that can actually contribute to the well-being of the company, but rather if they make a manager uncomfortable for any reason at all, or if their questions rocks the boat, the employer’s tendency has become to get rid of them.