*Given that you hire a person that adds value immediately through personality, perspective, behavior, professionalism, intuitiveness, integrity, etc...
Restaurant Theorem 1.1
Does the Employee have Value?
1.1.1 A new employee starts with a competency of 0, but by day 5 they fit in, are responsible, learned policies and procedures. Due to increased knowledge and experience they are productive and therefore have value.
Is an Employee an Asset?
1.1.2 Because of 1.1.1, employees have value. If you lose an employee there is a cost to replace them. If there is a cost to replace them, employees are an asset.
Is the Employee an Investment?
1.1.3 Because and employee has value (1.1.1) and they are an asset (1.1.2), can they also increase in value. If that employee who worked 5 days quits, you lost 1 vested week in that person. You have to start over by hiring new employee and their value starts at 0, the person who worked 5 days has a higher value than the new employee. Because an employee’s value can increase over time, it makes them an investment!
If you had an A player that has worked for you for 1 year! Look at the investment you have in them. If they told you they were going to quit and now you had to replace them with a new hire, that new hire does not have the same level of knowledge and experience. How will that difference in the new employee affect their co-workers, guests, manager and company?