Employees Are People Too

“When we treat people like numbers, they respond like numbers. They do the minimum required and nothing more.” — Simon Sinek

When companies treat employees as expenses to be managed rather than people to be valued, something fundamental breaks. This chapter explores what happens when organizations forget that employees are human beings with needs, fears, and aspirations.

The Numbers Game

Many companies manage by spreadsheet. Employees become “headcount,” “resources,” or “human capital”—numbers to be optimized for quarterly results.

When People Become Numbers

• Layoffs are announced to boost stock price
• Bonuses go to executives while workers are cut
• People are “resources” to be allocated
• Loyalty becomes a one-way street

The Story of Two Companies

Sinek contrasts two responses to the 2008 financial crisis:

Crisis Response

Company A:

• Immediate layoffs to cut costs
• Executive bonuses maintained
• Survivors fear they’re next
• Trust evaporates
• Productivity drops

Company B (Barry-Wehmiller):

• Everyone takes 4 weeks unpaid leave
• Pain shared equally
• No one loses their job
• Trust deepens
• People sacrifice for each other

Bob Chapman and Barry-Wehmiller

Bob Chapman, CEO of Barry-Wehmiller, implemented the furlough program with a powerful message to employees:

Chapman’s Message

“It is better that we should all suffer a little than any of us should have to suffer a lot.”

Employees could take the four weeks whenever they wanted. Some took Fridays off to extend weekends. Others saved weeks for later. The company survived without layoffs, and loyalty soared.

Discretionary Effort

When people feel valued, they give something invaluable: discretionary effort—the extra mile that can’t be measured or mandated.

What Is Discretionary Effort?

• Staying late to help a colleague
• Going above and beyond for customers
• Innovating and problem-solving
• Protecting the company’s interests
• Mentoring others

You can’t demand discretionary effort. It’s freely given—but only when people feel safe and valued.

The Cost of Not Caring

When companies don’t care about their people, the costs are real but often invisible:

Hidden Costs of Low Trust

• Employees do minimum required work
• Innovation disappears
• Customer service suffers
• Turnover increases
• Best people leave
• Remaining people are stressed and disengaged

Key Takeaways

• Treating employees as numbers destroys trust and discretionary effort
• When leaders sacrifice for their people, loyalty deepens
• Sharing pain equally (like Barry-Wehmiller’s furloughs) builds trust
• Discretionary effort can’t be mandated—it’s freely given when people feel valued
• The costs of not caring are real but often invisible