Have you ever encountered a company that refuses to shell out money for their employees, equipment, and supplies? Even though the company is making money, its owners are holding back from spending on training, equipment, and the like because they believe stinginess will keep the flow of income coming. You may know these companies. Some of them might not even be providing just compensation for their employees. They have ratty old office furniture, and their offices are dirty and dingy.
Imagine a metal fabricating factory that only has decades-old equipment. As a client, will you trust this company as a supplier after seeing their employees struggle with an outdated machine? You would have lost trust in the capacities of this company. For a company to impress both their workers and potential clients, it needs to show that they’re willing to make the necessary investments to be great. That includes spending money on training personnel and updating machinery and equipment, such as a new copper busbar machine.
Your business cannot offer more services or products when it cannot comply with the demands of the industry. Although it may have the best people, it will only operate in a reduced capacity because it lacks the needed equipment. It won’t be able to bid for projects or accept clients’ proposals because it will be hard-pressed to keep up with the deadlines.
While it is losing opportunities to bid on projects, your company will also produce fewer supplies and items. Your employees won’t be able to work as fast as machines. Although they are skilled, their work will not be as accurate and flawless. Imagine having to manually pound on metal instead of a machine doing that. What kind of quality work are you expecting your people to produce? If they don’t have the right tools to do their job, they will not hone their skills and provide what is needed from them.
Because you have limited capabilities, your clients will be severely disappointed in your company. You will not receive the recommendations you seek. They will not give you glowing five-star reviews on the Internet and discourage their peers from hiring you as a supplier. All those long hours you clocked in to make your business grow will all be for nothing because you refused to invest. A disappointed client is as good as gone. You won’t hear from them ever again.
Low Employee Morale
How would you feel as an employee if you worked in a company that does not put value in your welfare? If you see management being stingy with their investments, trying to push you to make do with broken-down equipment and outdated machines, wouldn’t that lower your morale? Employees need to see that the company is making the necessary investments for their own good. That will boost their morale and their willingness to stay there. But if the company takes no pride in how their office looks and their factories operate, employees will quickly look for another job.
As a business owner, you should learn the importance of investing in your people and the tools they need to succeed. While machines and equipment are only one part of the equation for a successful business, they represent a critical part of the whole business operation. Make a thorough review of what your people need and make the required adjustments to accommodate those in your budget.