If you are running a business, a shop, a factory or an office, just concentrating on the costs and profits is not enough. Surely you must reduce the costs in order to increase the profits, however, what you must remember is, apart from increased production and low cost of manufacturing, there are many other factors which affect the bottom line.
Three bottom lines
The concept of three or triple bottom lines is a framework for accounting thought to have been phrased by the business writer John Elkington in 1994. It lays down the success of a business to three factors: social, environmental and financial. It can be used to evaluate the performance of a business and to generate more value in a business. The triple bottom line principle mainly explains that not only the financial aspect but also the social and environmental aspects of a business must be fulfilled for that to be a prosperous profit-bearing venture. For that employees must also be happy and content with working there. The place must be properly constructed and complete with all security and safety measures; a firm of industrial electrical contractors Sydney can make sure safety is at an optimumlevel if it is a factory which uses a lot of electrical equipment. An HR consultancy firm can certify the practices used are of acceptable standards.
The snowball effect
Snowball effect is small things being collected for a long time and becoming a big thing. This is applicable to industrial problems as well. For example, a simple safety issue can lead to someone injuring a finger. But if you do not care enough to remedy it, in a year or two, it can be a person’s hand and you can be wasting time in a labour court finally ending up with paying large compensation payments to them. Therefore it is important that you look not only at increasing the number of machines or plants but also enhancing the quality of working and life style of the employees there. Even though there are machinery to be bought for almost anything now, we need manual help to switch them on and activate them. Not everyone has access to artificial intelligence. So keeping the human resources happy at all times can easily direct you to have a successful business.
Keeping up
Once the safety or other simple facilities are put in place, employer forgets about them sometimes. This is unacceptable; systems as such always need to be sustained. For example if you have an emergency lighting system you must always hire industrial electrical maintenance personnel to keep them up the standards. When the workers witness your dedication to something like this, it increases the trust they have placed on you creating a perfectly loyal family of employees.
A business must be run not only on the hard selling profit and loss conversations; taking care of the employees is an activity that can bring long term return.