I often hear that companies are  “bowing to investor pressure” when shutting down lines of business or divesting business units, shedding thousands of jobs in the process. Or that investors “demand” outsourcing or offshoring strategies.

Nonsense. Nothing could be further from the truth.

We are confusing investors with traders. Wall Street bankers are not interested in the long-term value of your organization, your customers or your people (and yes, that includes you Mr. or Mrs. CEO). It’s just gambling, with the average share being held for 22 seconds or less.

When’s the last time you listened to a problem gambler for advice on how to treat interpersonal relationships? I thought so. So why would we listen to trader/gamblers for advice on how to treat our people?

We should treat our employees better than any other part of the organization. As a long-term investor would. That means training, development opportunities, correction when necessary and all coupled with a genuine concern for their well-being.

A true investor looks to improve the value of the asset and focuses on growing the value of that asset over many years, which includes investing in the asset. The trader treats everything like a disposable commodity and is always looking to trade up.

How will you treat your employees this Q4?