What Truly Drives CEOs to Invest in People—Care or Financial Returns?
In today’s competitive and ever-evolving business landscape, one key question challenges CEOs of small to medium-sized enterprises (SMEs):
What truly drives your decision to invest in people—genuine care for your employees or the promise of financial returns?
This question isn’t just philosophical. It strikes at the heart of how organisations are run, the cultures they create, and the legacies they leave.
As we unpack this, it becomes evident that care and financial returns are not mutually exclusive, but they often compete for attention in decision-making.
The Case for Care
Some leaders view investing in people as a moral imperative. They believe in fostering environments where employees feel valued, supported, and inspired.
These leaders prioritise care for several reasons:
- It builds trust and loyalty.
- It creates a strong organisational culture.
- It aligns with a deeper sense of purpose and responsibility beyond profit.
Such leaders often adopt people-first strategies because they see employees not just as resources but as individuals whose well-being matters.
But can care alone justify significant investments in training, development, and employee experience? Or is there always an expectation of a return?
The Case for Financial Returns
On the other hand, many CEOs are driven by numbers. They know that:
- Investing in people increases productivity.
- Happy employees lead to happier customers, which boosts revenue.
- Retention saves costs associated with turnover.
For these CEOs, the decision to invest in people is less about altruism and more about outcomes.
If there’s no clear link to financial performance, the investment may not make sense. But does a purely financial lens miss the deeper benefits of truly caring for employees?
Where Do Care and Financial Returns Meet?
For most CEOs, the answer lies somewhere in the middle. Care and financial returns often reinforce each other:
- Investing in people creates a positive work environment that improves productivity and innovation.
- A culture of care enhances a company’s reputation, making it easier to attract and retain top talent.
The challenge is knowing where to strike the balance. Are your people investments driven more by a sense of duty or the promise of profitability? And does one necessarily have to outweigh the other?
The Question for CEOs
So, what drives you? As a CEO, do you lead with your head, your heart, or a combination of both?
Is it possible to prioritise care and still achieve outstanding financial results? Or is financial return always the ultimate goal?
Let’s open the conversation. CEOs, we’d love to hear your thoughts. Are your decisions about investing in people rooted in care, financial returns, or both? Comment below or take our LinkedIn poll to share your perspective.
