OFFICIAL PUBLICATION OF THE Illinois Automobile Dealers Association

Pub. 13 2023 Issue 4

Biggest Asset: Depreciation or Appreciation? Are Your People Worth More or Less Today Than When You Hired Them?

Consistent Training Means Consistent Growth and Value

Commodities typically depreciate over time, meaning their value or worth slowly diminishes the longer we keep them. We either have a depreciating asset (i.e., car, trailer, boat) or an appreciating asset (i.e., real estate). Often, we say that our greatest assets in business are our people. Competence, experience and consistent growth give them this designation. However, that really depends on how much we help them learn and grow. A common belief is that if they are winners, they will self-educate for consistent growth. The reality is complacency and comfort set in quickly with most people. Once they learn just enough to become somewhat successful, they rely on that stagnating ability to continue growing in their career. This may be enough for them but bad for the growth of your business.

Continual education is imperative for the consistent growth and success of your company. This education must come from multiple channels. Corporate training, self-education and outside learning opportunities must not only be encouraged but required. We have found in our industry that, often, we don’t expect our people to continue to learn and grow. The experienced employees with good to moderate success help to create our own comfort zone or expected results. We don’t want to bother them with the same old training efforts. We just leave them alone and expect them to naturally get better with time. The problem with that idea is we don’t really get better at anything we do with just repetition. We get better with perfect practice, analysis of execution and learning new ideas about a subject. We should always push our people to work toward their personal potential. Their potential is always greater than their current reality, no matter how successful they are.

Growing your business comes directly through the growth of your people:

  • Train expectations
  • Monitor progress
  • Push employees to the next level
  • Reward growth

“Not every difficult and dangerous thing is suitable for training, but only that which is conducive to success in achieving the object of our effort.” — Epictetus

In any business, people are the greatest asset. Without the right people, the company’s vision can never be executed. It is imperative that education, training and personal growth be not only encouraged but required. This is the only way your number one asset will grow in value and be worth more today than yesterday. Take the steps today for your asset appreciation.

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