Why Doesn't Business Management Invest in Human Capital?

If you are in business management, what decisionworkforce does not come to work thinking how
is easier for you to make: Invest in a new vehicle,they can make their bosses day terrible or ruin
new technology or develop your employees orthe company. Their inability to perform their jobs
your human capital?many times is directly connected to poor business
How much money do you spend in marketingmanagement, poor attitudes by other internal
your business? For some companies this may becustomers and under developed self leadership
up to 10 to 15% of their total revenue. And ifskills.
you are a small business or sole proprietor, byOne of my executive business coaching clients is
belonging to a chamber, a couple of professionala new car salesman. He is totally committed to his
associations and a formal networking group, youclients. Yet, when he does everything he needs to
have already invested at least $30,000 indo to sell a car, he continually meets resistance
marketing.from the finance manager.
With the value of your business being far moreA recent example was a customer was coming in
about your human capital than your products orto pick up his car during his lunchtime. The finance
services, how much are you losing by notmanager knew this, but had to eat his lunch first.
investing in your people? Losses include: highHe then adopted a very negative attitude to the
turnover, lack of productivity, absenteeism andsalesman and the awaiting customer.
lost external loyal customers.When human capital is not properly developed
Maybe you have the belief that you are payingincluding everyone truly being on board to
them and they should be delivery effectiveachieving the business goals, the end result is that
productivity without any further investment. Afterbusinesses are not building external loyal
all, you hired them and they should know whatcustomers and draining thousands of dollars from
they should be doing.their bottom line.
What I have learned is that 99% of the