Posted in:Talent Management
As we enter September, it is hard to believe that we are already nine months into 2020. This year is a special one where we see more people grateful for each step forward and we want to take a pause to recognize the resilience we are seeing. Some companies are doing very well, but many businesses have seen activity decrease this year due to the effects of the COVID-19 pandemic. However, the cool air of September provides the perfect opportunity to step back and focus on the things that really matter.
Inputs to Success
When it comes to factors of production, there are three main inputs to success: land, capital, and labour. Through thoughtful strategy and focused execution entrepreneurs turn these factors of production into products and services, which are then sold to generate revenue that can support business aspirations and the livelihood of their team members while responding to market needs. However, these three factors are not equally weighted. Let’s take a closer look at each one.
As more and more transactions begin to take place online, land or property is quickly becoming less of a factor with each passing year. The COVID-19 pandemic is accelerating this change, making land (and location) much less of a key factor.
An infusion of money does help propel a business forward, but sometimes those gifts can turn sour if a return cannot be provided to investors. In addition, most investors do not fund business ventures without an eye for some payback, which can curtail business growth in the future. This makes capital a valuable but somewhat fraught consideration when looking at business success.
Labour is a special production factor, because it is nearly invisible and takes nurturing. The knowledge held in the minds of employees can be very powerful if harnessed appropriately. It is crucial that employers find ways to encourage the expression of opinions and ideas to drive innovation, so their business can adapt to the times.
Another benefit of focusing on the labour aspect is that it can strengthen your competitive advantage, specifically it is hard to replace and replicate; a double-edged sword. We’ve often said a key ingredient in a company’s success is its people – and this year, that may be more applicable than ever.
Here to Help
If you’d like to focus on strengthening your company’s human resources function, we can help. We can be reached for a free confidential consultation at +1-403-470-5350 or [email protected]
For further details on how Honiva can help you prepare you during your recovery and rebuilding, please view our service offerings. We also welcome business owners to attend our next online seminar to learn how to improve employee management practices and strengthen your company long term. Register for the free HR Education session at EventBrite.