As a business owner or executive leader, you’ve likely invested a lot of time, energy, and money into recruiting and retaining a solid team. But let me ask you this: Are you truly getting the full value out of your employees?
In many medium-sized businesses, employees are unintentionally underutilised. Not because they lack talent or drive, but because the business hasn’t put the right systems in place to leverage their full potential. It’s a bit like buying a top-of-the-range car and only using it to drive to the corner store. The value is there—you’re just not tapping into it.
The Value of Your People
Let’s talk numbers for a moment.
If an employee has the potential to contribute R500,000 in value annually, but only delivers R300,000 due to unclear expectations, skill misalignment, or lack of motivation, you’re effectively losing R200,000 per person per year. Multiply that across a team of 20 or 50, and the loss becomes eye-watering.
Many business owners focus heavily on customer acquisition, sales, or cost control. These are all important, but often the greatest untapped source of profit and innovation is your existing workforce.
The Hidden Costs of Underutilisation
When employees are not fully engaged or challenged, it doesn’t just cost you money. It affects morale, culture, and long-term stability. Underutilised staff tend to:
- Become disengaged or demotivated.
- Deliver lower-quality work.
- Ignore growth opportunities for themselves and the business.
- Eventually leave, taking their potential (and your training investment) with them.
You may be unknowingly creating a work environment that stifles rather than supports employees.
But There’s Good News
Unlocking this hidden value doesn’t require a major restructuring or a large HR department. What it does require is strategic intent—knowing where to focus and how to get there.
Here are five practical ways to start maximising employee value:
- A Talent Strategy – You need to know what type of talent you need and identify the gap between your existing talent and the talent you will need in future. What is your business strategy? Can your existing talent make it happen?
- Role Clarity – Clearly defined roles and responsibilities reduce confusion and improve accountability. Everyone should know what “great performance” looks like in their role and this should be reflected in their job descriptions. Not only the ‘what’, but also the ‘how’.
- Skills Mapping – Take stock of the capabilities within your team. You may have untapped expertise sitting idle while outsourcing tasks or leaving needs unmet. Assess to what extent your company’s skills base meets the skills you need for the near future.
- Performance Measurement – Develop and implement consistent metrics to track performance and progress. Remember: What gets measured gets done and can be improved upon. Don’t only focus on formal, annual reviews, but create a culture of informal and immediate feedback. Here are some pointers.
- Development Pathways – Help your team grow. Whether it’s internal mentorship or external training, development creates loyalty – and results. Here are some of the most effective ways of unlocking the potential of each of your employees.
- Reward Structures – Ensure your incentives align with the behaviours and outcomes you’ve identified in your talent strategy. Recognition doesn’t always have to be financial, but it must be meaningful. A ‘day off’ or a person-specific ‘thank you’ could go a long way to make a team member feel appreciated.
Final Thought
HR doesn’t need to be complicated—but it does need to be intentional. When you invest in the right people strategies, you don’t just improve productivity – you build a more innovative, resilient, and profitable business.
Do you need assistance in identifying possible gaps in your HR practices and processes? Our ‘Deep Dive HR Audit can help! It’s a structured, 60-minute interview with your HR champion across key HR domains. It results in the identification of your people management strengths and development areas, with recommended priorities and guidelines for implementation, all contained in a tailored report.
About Competence SA
Competence SA identifies, develops, and enables potential through the provision of the following services:
- Talent management consulting
- Job descriptions and competency frameworks
- Recruitment
- Psychometric testing
- Employee development
- Leadership development
Contact us at hello@competencesa.co.za or 082 853 7456
