I have to start this post (and I’ll probably end it) by saying that
good employees are your most valuable resource.  Whatever is next most
valuable is so far behind good employees you can hardly see it from
here.  You’ll notice I said “good” employees.  Average and below
employees contribute little to moving your business forward, and are
actually more of a hindrance than a resource in many ways.  So when we
say employees are your most valuable resource, we’re talking about
those employees who contribute something to the success of your
business.

Now, I know placing value on your employees is a popular theme these
days.  Everyone says it.  But how do you know if your actions line up
with your words?  The rule of thumb I use is taking a look at which
type of employees are leaving the company.

If you value your employees, they’ll know it.  You won’t have to
tell them.  Your actions toward them will make it clear how you feel
about them one way or the other.  What you say will be immaterial. 
And, if you value your employees, they’re going to want to stay.

What happens in that scenario is this:  good employees feel
appreciated and feel they are an important part of the success of the
business.  They begin to feel the same enthusiasm for moving the
business forward you feel.  They begin to be willing to do whatever it
takes to see the business succeed.  They want to stay with you.

Below average employees (and I’m being charitable calling them
that)  begin to feel threatened in this environment.  They just want to
come to work, put in their time, and leave at 5:00 and go do whatever
it is that below average employees do in their time off.

In this model, you’re peeling off the bottom.  The net result is
you’re retaining good employees (who are excited about what they do and
are becoming better employees every day) and you’re losing  below
average employees.  The bottom line of all this is the quality of your
workforce is gradually (but inexorably) improving.   Overall, it will
be better this month than last, and it will be better next month than
this.  They’ll produce more.  They’ll produce better quality with fewer
mistakes and rework and they’ll be happier doing it.

On the other hand, I remember going into one business that had
terrible employee relations.  Many employees had been told to their
faces that they were worthless (why they were still there — either from
their own volition or that of management — is beyond me.)  There was no
appreciation for a job well done, consequently, there were no jobs
being done well.

That business was peeling off the top.  Good employees were saying,
“I can do better than this.  I don’t need to stand for this.  I’m going
where people will appreciate what I do, and where I can make a
meaningful contribution.”  The quality of the workforce in this
business was (and had been for a long time) gradually decreasing, until
we were forced too take whatever employee we could find.  In my first
week we were so desperate for employees we literally went to the bus
station looking for any warm body we could find to help.

Look at your business and see if you are peeling off the top or off
the bottom.  This is never static.  It is a very dynamic thing, and
you’re never standing still.  Is your workforce stronger today than
yesterday?  Are your key employees content with working for you?  Have
they bought into the dream?  Do they feel a passion for your success? 
Of so, then you are truly placing high value on your most valuable
resource.  If not… Well, you’d better consider making an adjustment and
doing it soon.  Good employees are your most valuable resource. 
There’s no other way to say it.