Welcome back. It’s Stephen Hunt from Hunt Hospitality International. Today I want to talk about the Capital Value of your team. Now, I know we’re driven by the world of accountants, we’re always talking about figures, and how can you put value to your team member.
So there is a physical way or financial way that we can actually do that. The way I look at it is like this. So back in the day used to pay the banks 5%. And on a million dollar loan, you would pay $50,000 per year. So the way I look at it is each employee that you pay $50,000, is worth $1 million to your business. So that technically means if you’ve got a payroll of a million dollars, your team are worth $20 million to you.
Now, I don’t know about you, but 1 million or 20 million, or 100 grand is a lot of money to me. And regardless, I look after it. So it’s really, really, really important that you remember this when you’re employing, and we’ve discussed that you’ve got the right moral compass, you’ve got the same team who’ve come on board who share the same values with you. So now it’s super important to actually look after them. Remember, there is a value to them. And 50 grand is worth a million and probably today, it’s more like 30 grand is worth a million. So it’s super, super important to take care of your team.
Thanks very much. Look forward to talking to you again next time.