CFO: “What if we spend all this money on training and they leave?”
CEO: “What if we don’t… and they stay?”
Most CEOs say their people are their greatest asset — yet when budgets are tight, HR is often the first department to be cut. So, why the disconnect?
As highlighted in a recent Peoplogica newsletter, it comes down to two key issues:
- People don’t show up on the balance sheet. Unlike physical assets, employees aren’t listed in financial reports, so their value is often overlooked — even though losing a top performer can have a serious impact on business performance.
- HR often doesn’t push back. While other departments defend their budgets by showing risk to operations or revenue, HR tends to quietly accept cuts — instead of arguing for the long-term value of investing in talent.
To change this, HR must step into a more strategic role. That means advocating for leadership development at every level, taking ownership of employee performance and engagement, and using data to back up decisions.
Now more than ever, HR professionals need to be bold, proactive, and willing to challenge outdated thinking. If people truly are a company’s greatest asset, then HR must fight to protect and grow that value — not sit quietly while it’s compromised.
This article was adapted from insights shared in a recent Peoplogica newsletter.
