The panelists discussed the shift in executive thinking to looking at the intangibles – intellectual property, customer relationships, talent – as “hidden gold.”
This is not surprising. As I’ve blogged before, the Brookings Institute has determined that as much as 85% of a company’s expenses may be related to the intangible capital in its people.
The article discusses why companies find it so difficult to realize ROI on their investment in “human capital” – in their people.
Eric comments that one key way to encourage employees to give more discretionary effort is to engage them in the company’s mission. Doing so can “impact competitive positioning at virtually every level: from boosting productivity and strengthening customer relationships to controlling costs.”
Eric also discusses the value of opening recognition opportunities to the majority of employees. “Every time people are given an award, they’re reminded about the values of the company. So if you’re touching only 15 percent of the workforce once a year rather than 80 percent quarterly, you’ve lost a real opportunity.”
What is your opinion on the value of intangibles? How much of your company’s expenses are invested in your people? Visit Globoblog and tell me in Comments.
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