Ep 160: Determining Value

When I say the word “value”, the meaning that typically comes to mind is generated by that persons position or context. Andrew and I were having a chat about how employees think of value versus how employers think of value and is there a disconnect between these two groups that should be concerning? Welcome to EP 160: Determining Value

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As someone who’s been on both sides of the employee-employer equation, I’ve come to understand that value is a fluid concept that shifts depending on where you stand. For employees, value can be anything from a paycheck and benefits to growth opportunities or simply feeling appreciated for their hard work. I’ve seen this firsthand as a mentor, where the definition of value varies wildly from one person to the next. Now that I’m in a leadership position, I try to stay mindful of those diverse perspectives, recognizing that what people prioritize in their work lives can change based on where they are in their career.

On the flip side, as an employer, I’ve learned to see value in terms of what an individual brings to the team—whether it’s their skills, attitude, or ability to help the company succeed. However, as an employee again, I find myself thinking more about what I get out of the job in return for my effort. Balancing these two viewpoints—what employees expect and what employers prioritize—is crucial in fostering a healthy, productive work environment.

So, let’s kick off by diving into the employee’s perspective on value: what drives them, what they’re looking for, and how they measure it. After that, we’ll switch gears and explore how employers define and recognize value from their side of the table.

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Job Satisfaction and Personal Fulfillment jump to 4:18

Employee Perspective
From an employee’s perspective, value isn’t just about the paycheck—it’s about job satisfaction and personal fulfillment. Yes, fair compensation is important, but once that’s met, the real question becomes: are you doing meaningful work that you enjoy? Does your job align with your values?

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Monetary Compensation and Benefits jump to 7:12

Employee Perspective
From my perspective, while monetary compensation is important, it’s crucial not to overvalue small differences. If you’re earning $62,000 and your friend makes $64,000, it shouldn’t be a deal breaker. However, if the gap is significant—like $90,000 versus $60,000—that’s worth examining. What I see frequently is that employees often judge their value based on salary alone, and while that makes sense, as an employer, I have to manage broader considerations. I can’t just give one person a substantial raise without considering how it affects everyone else in the company. People should appreciate that sometimes it’s not about withholding; it’s about managing fairness across the board. It’s important to provide incremental raises regularly, like 3-4% each year, rather than waiting years for a big adjustment. Incremental increases help employees feel valued and prevent resentment from building up.

We also spent a fair amount of time discussing the idea that small incremental raises, even just 3-5%, go a long way in making employees feel valued. The frustration comes when you work hard year after year and don’t see any reflection of that in your paycheck. I’d much rather have smaller, more frequent raises than wait several years for one large adjustment. It shows that the company values my contributions on an ongoing basis rather than dangling a carrot for the future. The lack of even modest increases can wear down an employee over time, leading to dissatisfaction. Compensation isn’t just about the big raises—it’s about the ongoing message that the company sees and appreciates your work.

We both recognize that monetary compensation isn’t the only part of the value equation. Benefits—whether they’re healthcare, exam reimbursements, or membership fees—add up to a significant portion of an employee’s total compensation package. However, many younger employees or those without families may not fully appreciate this until later in their careers. For now, cash in hand seems to take priority. Still, as employers, it’s vital to communicate the full scope of what the company is offering, even if some employees don’t immediately recognize the value.

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Growth Opportunities and Career Advancement jump to 20:28

Employee Perspective
I see value from an employee’s perspective as something that goes beyond just compensation. It’s about creating a work environment where individuals feel they’re part of something bigger and have real opportunities for growth. Early in my career, I learned that advancement and career development are crucial. Employees want to feel that they can eventually have a meaningful stake, whether it’s getting their name on the door or simply being recognized for their contributions. Communication plays a big role here, both in understanding employees’ ambitions and providing a clear path for them to grow within the company.

Mentorship is key to this, but it needs to come from someone in a leadership role – someone who not only provides guidance but also advocates for the employee when needed. A Gallup study backs this up, showing that 87% of Millennials value professional development and career growth opportunities. The numbers show that when employees feel their personal growth is being invested in, it strengthens their connection to the company.

Recognition is another important aspect. It doesn’t have to be big, public gestures; even private acknowledgment of work well done can go a long way. Research from Bersin & Associates highlights that companies with highly effective recognition programs have 31% lower voluntary turnover. Employees don’t want superficial gestures like pizza parties or one-size-fits-all rewards – they want meaningful, authentic appreciation. When employees feel valued, it increases their commitment to the company and reinforces a sense of belonging.

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Productivity and Contribution jump to 42:25

Employer Perspective
I view value through the lens of productivity and contribution to business success. Employees who can directly impact the bottom line, like the woman who exceeded all expectations, demonstrate tremendous value. On the flip side, high salaries can set unrealistic expectations. If an employee doesn’t meet those, even if they’re a great fit otherwise, there’s a mismatch between what we’re paying and what we’re getting. I’ve seen cases where if someone was being paid less, their performance would seem more aligned with our expectations. So, balancing salary with productivity is key.

There are employees who work 40 hours and deliver 40 hours of work, but not everyone is like that—I’m not. To get 40 hours of output from myself, I might need to work 50 hours. Some people are just more efficient, while others need more time, and it’s important to recognize that difference. What’s frustrating, though, is when people work 40 hours and give us only 25 hours of productivity. In my semi-new role, I totally understand this balancing act—paying people what they’re worth without overpaying or underpaying, while also adjusting as we see their contributions evolve. While we do log the amount of time people spend working, the purpose of this has more to do with making sure that no one is overburdened (the the best of our abilities). There are always a few employees who, no matter what, will put in extra time, but the key takeaway is that value is often tied to productivity when evaluating employees.

Andrew added that as an employer, it’s crucial to get this balance right from the beginning. It’s difficult to gauge someone’s value at first, but you can adjust salaries as necessary. He also mentions that value isn’t just about productivity; there are intangible qualities that contribute to an employee’s value. Some people, for example, act as the “glue” in the office, holding teams together and maintaining the office dynamic. Even if they’re not 100% productive, their role in fostering a collaborative atmosphere is invaluable. These qualities can balance out a slightly lower productivity level, making them just as essential to the company’s success.

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Team Dynamics jump to 47:48

Employer Perspective
Andrew and I discussed how important cultural fit and team dynamics are when evaluating the value an employee brings to an organization, especially from an employer’s perspective.

I like to emphasize the role of what I “pied pipers”—those individuals who, through their personality, help make the workday a little more enjoyable for everyone, and are able to galvanize opinions and get people to follow along. These people aren’t necessarily focused on being the most productive every minute, but they play a crucial role in creating a positive environment. To me, if employees only have their noses to the grindstone without taking the time to engage with one another, they lose out on forming connections that ultimately benefit team cohesion and job satisfaction. I shared an experience from a past firm where, during hiring decisions, we would have prospective employees interact with the team they’d work with. If the team didn’t feel like the candidate was a good fit, we wouldn’t hire them—simple as that. Cultural compatibility simply cannot be overlooked.

Andrew used a similar hiring process, where after the initial interview with him, the potential new employee would spend time with his team to see if they meshed well. If his staff didn’t like the candidate, he’d move on to find someone else. For him, getting along with coworkers was critical to maintaining a productive and harmonious office environment.

I then shared a personal story from when I was interviewing at BOKA Powell. After meeting with the owners, I had to sit down with the firm’s leadership council in a tough meeting where they peppered me with questions. It was an intense experience, but I understood the need for it—they wanted to make sure I was a good cultural fit, especially since I was being considered for a senior role. Interestingly, after I was hired, one person admitted they initially didn’t think I should be brought on. In hindsight, their concerns were valid, though I think those traits they were worried about would’ve been hard to judge from the interview alone.

Highlighting the importance of cultural alignment for employee retention, there is a study from the Journal of Personnel Psychology that found employees who fit well with their organization’s culture are 87% less likely to leave. Andrew and I both agreed that this, but practical factors like salary still play a role—loving the job is great, but it’s hard to stay if it doesn’t pay the bills.

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Long Term Potential and Retention jump to 53:07

Employer Perspective
From my standpoint, long-term potential became increasingly important to me in my 30s – which was undoubtedly related to the events taking place in my life focused on starting a family. Now that I am in a position of evaluating long term potential, it is easy to understand the challenge in identifying that potential, especially with younger employees who don’t have decades of experience to lean on. When you’re evaluating someone in their late 20s or early 30s, it’s hard to predict how life might change for them—whether they’ll move or leave the firm for reasons completely outside of work. Despite that uncertainty, I think it’s a risk worth taking because if you find someone extraordinary, you want to do everything just outside of reason to retain them … which is the flip side of the coin.

Retention becomes increasingly important if for no other reason than the idea of training their replacement. Employers, especially those evolving into leadership roles, need to invest in their younger staff to mold them into senior positions within the firm. This can be challenging because it can feel more efficient to simply do the work yourself rather than teach someone else. (It’s like teaching a kid to tie their shoes: it’s frustrating and takes longer, but it’s necessary for their growth). I’ve always pushed the idea that people with senior roles in the firm should spend more time mentoring and developing their staff rather than being caught up in day-to-day work tasks. This is essentially about creating “miniature versions” of yourself, even though that requires stepping away from things you know you can do efficiently to invest time in teaching others.

Andrew agreed and shared that some employers are not always transparent with their team about this process. They might give more responsibilities to certain employees, but without clearly explaining that this is part of grooming them for leadership roles. Both of us agreed that being upfront about these intentions—about training someone to eventually replace you—can help set clearer expectations and reduce frustrations on both sides.

We also touched on the financial aspect of retention, including a study that found employee turnover costs businesses up to 33% of that employee’s annual salary. This statistic highlights how costly it is for firms to lose and then onboard new employees. The first few months with any new hire are typically spent getting mediocre results, simply because they need time to adapt to how the firm operates and earn the trust of their colleagues. Even if someone is talented, there’s always a learning curve. This makes long-term retention crucial for maximizing value.

In the end, while loyalty is important, I chose to focus on retention as a key indicator of value. If an employee has been with a firm for a while, it’s likely because they fit within the company culture, are competent in their role, and are valued by the organization.

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What’s the Rank jump to

For many, it is the time of the year for state fairs to start – a seasonal event that that I know that I certainly look forward to. I can’t help but imagine that state fairs are the fairly typical across the land and as such, we decided to look to our own State Fair of Texas for the inspiration to today’s ranking.

What are the best Three beat State Fair/Festival Foods?

	#3	#2	#1
Andrew’s State Fair/Festival Foods	Foot Long Corny Dog	Kettle Corn	Smoked Turkey Leg
Bob’s Best State Fair/Festival Foods	Country Fried Bacon and Gravy	Smoked Turkey Leg	Corny Dog

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Ep 160: Determining Value

I don’t think it would come as a surprise to anyone to learn that the concept of “value” varies between employees and employers. People want to feel appreciated, do meaningful work, and see clear paths for advancement. I had these same considerations – still do in fact – but these priorities can shift over time and with responsibility. What I valued as an employee isn’t always what I focus on now in my current role. Balancing perspectives is key, especially as you realize that value isn’t static; it evolves with career stages. Ultimately, understanding these shifts and maintaining open communication can help bridge the gap between what employees and employers prioritize so that both groups can see how the other fits within a larger picture but still being able to focus on the individual. It’s hard and I don’t have it figured out … but I’m working on it.

Cheers,

 

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Special thanks to today’s sponsor Construction Specialties – they are so focused on the importance of mastering movement, that they have created CEUs specifically on mastering movement. Each course is worth 1 AIA LU/HSW and is part of the Mastering Movement Academy by CS. Visit masteringmovement.net to take this and other courses.