7 Reasons Why Employees Are a Company’s Valuable Assets Not Liabilities

Last Updated: October 14, 2023 | by Paul Harstrom

Employees are a company’s most valuable asset. No doubt, dedicated patrons, forward-thinking executives, and delivering top-notch products and services contribute to a company’s achievements. However, the loyal workforce, including your employees, frequently stands as a company’s most valuable asset rather than a Liability

Employees play a pivotal role in shaping their company’s image and often hold the key to its prosperity. They are intricately involved in every facet of a business, making it imperative for employers to exercise careful consideration when choosing individuals to represent their organization. 

In the following sections, with solid reasons, we will explain why employees are your company’s valuable asset rather than a liability or an expense. So, keep reading until the end to gain valuable insights into the topic.

How Employees Are a Company’s Valuable Assets:

Entrepreneurs require employees to:

  • Expand their operational capacities
  • Enter new markets
  • Drive business growth

When company founders seek new ventures or retirement, they depend on their employees to preserve their legacy, ensuring the business continues to operate efficiently and grow even in their absence.

employees are assets working in home office

Hence, one of the most valuable assets a successful company can possess is its unique and loyal employees, emphasizing that employees are assets. This uniqueness ensures that each employee is irreplaceable, unlike many other company assets. 

“Your number one customers are your people. Look after employees first, and then customers last.” 

Ian Hutchinson

While businesses can acquire new customers, substitute suppliers, and recover lost profits, each employee brings a unique blend of skills, knowledge, and personality to the workplace, influencing the business in distinct ways. The individual makeup of each employee remains impossible to replicate.

Why Employees Are Not Liabilities?

Some managers treat their employees as just an expense or liability, something to cut down on to save money. They prioritize numbers over people. This is because, in accounting, employees are seen as a cost, just like buying materials or equipment.

On the other hand, great leaders see employees as valuable assets. They believe that employees can help the company grow, make customers happy, and improve various aspects of the business. They recognize that investing in employee development can lead to better results because they are future outcomes of a company.

So, how managers see employees as a liability or an asset can make a big difference in how employees feel and perform. At LEAD Diligently, we understand this concept and help business executives gain the necessary skills to bring out the full potential of their employees.

“Take good care of your employees, and they’ll take good care of your customers, and the customers will come back.” 

J.W. Marriott

Consider your company as a complex system, much like the human body, where employees are the most valuable asset and serve as the essential components, similar to how our organs collaborate to maintain our well-being and enable us to perform tasks skillfully and efficiently.

Just as we invest in maintaining our physical health to lead a fulfilling life, it is equally vital to invest in the well-being of our employees, recognizing that employees are assets and the lifeblood of our organization.

Click here to read our 8 guiding business pillars demonstrating employees’ importance in an organization.

Neglecting the needs of employees can hinder overall health and success. Therefore, nurturing and supporting our employees should be a top priority.

Numerous psychological insights underline the significance of fostering intrinsic motivation among our staff. We can cultivate a loyal, hardworking, creative, and innovative team by demonstrating our commitment through actions, attitudes, and investments in their growth

This team, driven by a sense of purpose and autonomy, has the potential to elevate our company to new heights. Hence, it is undeniable that employees are valuable and our company’s most valuable assets.

At LEAD Diligently, our mission goes beyond providing conventional leadership development; it is more deeply about creating a culture of stretch and support where whole + intentional leaders and employees are having regular personal/professional development conversations and increasing alignment between the needs of the organization and the needs of the individual.

7 Reasons Why Employees Are Your Company’s Assets Not Liabilities:

Intrinsic motivation, born from a profound sense of purpose and the desire for autonomy and mastery, represents an innate and potent force within every individual. It ignites boundless energy and enthusiasm when we engage in tasks driven by this intrinsic passion. 

This force propelled visionaries like Leonardo da Vinci, Pablo Picasso, and Albert Einstein to achieve remarkable greatness throughout history. Employees are considered valuable assets for a company rather than liabilities because they are pivotal in driving purpose, motivation, and performance within the organization. 

“When the reward is the activity itself – deepening learning, delighting customers, doing one’s best – there are no shortcuts.”

Daniel H. Pink

By nurturing and promoting intrinsic motivation among your employees, recognizing that employees are assets, you can unlock the strength for them to accomplish extraordinary feats that can take your company to unparalleled success.

“Autonomy: the urge to direct our own lives. 

Mastery: the desire to get better and better at something that matters. Purpose: the yearning to do what we do in the service of something larger than ourselves. 

These are the building blocks of our businesses’ entirely new operating system.”

Daniel H. Pink

Each employee brings a unique blend of skills, knowledge, and personality to the workplace, influencing the business in distinct ways. The individual makeup of each employee remains impossible to replicate. 

Here are several compelling reasons why employees stand as invaluable assets for your organization.

employees are the most valuable asset

Representing the Company to the Public: 

When customers interact with a business, they usually talk to employees. These employees show the company’s face and values.

If an employee can solve a problem for a customer, it can turn a bad experience into a good one. People also trust companies more when they see real people working there.

Also, read 10 Tips to Maintain Healthy Work-Life Balance

In-Depth Understanding of the Business and Its Customers: 

Employees know the company and its customers well because they deal with them daily. They know what customers want and how to make them happy.

Furthermore, employees, who are assets, regularly engage with their company’s systems and equipment, affording them firsthand knowledge of what works seamlessly and where improvements are needed.

Bridging Expertise Gaps: 

Innovative business leaders hire people who are good at things they might not be. This helps the company do tasks that the leader can’t do alone. These employees also share their knowledge with others, making the whole team brighter.

Click here to read more about the traits of disciplined leadership.

Attracting New Talent: 

When employees are happy, they tell others, making the company a great workplace. 

Positive reviews from employees can attract talented new people. People also like working where their friends or family already work.

Enabling Product and Service Delivery: 

Employees are the ones who make sure customers get the things a company makes or provides. Some create and test products, while others help customers buy or use these products, recognizing that employees are the most valuable asset. Employees who deal with customers affect how happy those customers are.

Becoming Natural Brand Advocates: 

Many employees become fans of the company they work for. When they talk positively about their job, it can change what others think about the company. People trust recommendations from friends and family, which is very helpful for business growth.

Driving Profitability And Innovation: 

Dedicated employees help the company make more money by:

  • Selling products
  • Making customers happy
  • Finding ways to save money

They can turn one-time buyers into loyal customers by giving excellent service. Additionally, Employees often bring new innovative ideas and skills to the company. They help create new products and improve how things are done. This keeps the company competitive, especially in industries that change quickly.

Conclusion of why Employees are Valuable Assets:

Employees are valuable assets for a company as they help businesses to grow and stay around for a long time. Even when founders leave, employees keep the business going and growing. 

A company can achieve massive success if its Employees are motivated by purpose, given autonomy, and empowered to achieve mastery. Such employees are more likely to be engaged, innovative, and committed to the organization’s success, making them a source of competitive advantage rather than liabilities.

In essence, employees are like the heart and soul of a company. They bring diverse skills, connect with customers, and help businesses thrive and grow.

 Do you feel the same about your employees or , being an employee, what would be your opinion on this topic? Let us know about your thoughts in the comment section below!

How LEAD Diligently Can Help You

Lead Diligently offers expert-led leadership development programs to help you build business executive skills & advance profitable enterprises.

We are on a mission to help our clients gain the clarity they need to wholly pursue their God-given purpose and grow profitable enterprises.


Are employees a financial burden on a company?

No, employees are not a financial burden when managed effectively. Their contributions far outweigh their costs, increasing revenue and overall company profitability.

Why should a company invest in employee training and development?

When a company invests in its employees’ training and development, it can expect higher returns in terms of increased productivity and innovation.

How can a company maximize the potential of its employees?

Companies can maximize employee potential through the following:

• Effective leadership
• Ongoing training
• Creating a positive work environment
• Recognizing and rewarding employee contributions

This cultivates an environment where employees thrive and benefit the company.

Why employees are the most important asset in an organization?

Employees are the backbone of any organization. They bring their unique skills, knowledge, and dedication to the table, driving innovation, productivity, and customer satisfaction.

Beyond that, they shape the company culture, influence its reputation, and contribute to long-term growth. Employees are the driving force behind an organization’s success, making them its most vital asset.

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