Getting through the day becomes the goal of most employees while taking home a paycheck. Both employees and employers suffer when employee goals do not evolve beyond these two factors.
The pressures of day-to-day business weigh on the shoulders of all professionals, and leaders feel they can’t afford to invest in their people as much as they would like – it just isn’t not realistic. When employers take this point of view, they betray their employees and their company. The backbone of the business is its employees.
Why leaders should invest in people
When you invest strategically in people, you attract and retain all of the best candidates, and you also build a strong work culture without fear of innovation, change, failure and success. Employees take the bull by the horns and run with ideas, instead of running away from problems. Here are five reasons why employers should invest more in employee development, and therefore in business success.
- Attracts and retains great employees
Employers face barriers to employee retention and need to keep hiring to keep their talent pool filled – 40 percent of dissatisfied employees leave their jobs, and each disengaged employee costs employers up to $ 550 per person per year. Retention creates a major expense and challenge for employers and the development of an employment development program alleviates this burden.
Showing new hires that their development is important will make them less likely to move on to another company, giving the employer a competitive advantage. The employee feels valued and trusts the employer.
- Strengthens the reputation of the employer
Investing in lifelong learning strengthens your reputation as a caring employer. Word is spreading, and you’ll need to guard against an influx of clients and candidate applications. You do good for your employees and it pays good for your business. Offering rewards for attending conferences and continuing education or a small allowance for books cultivates an environment of continuous improvement, and it’s a great reputation for all.
- Increase innovation and performance
Does your company invest in human transfer? Learning never stops after college, and recent graduates and experienced professionals do well with more enrichment and professional training.
A study found that the transfer of human resources positively impacts the performance of the company through innovation. Companies must develop the transfer of human resources by employing young graduates, then by providing additional professional training to all their staff. The researchers found that this course of action produces performance benefits through innovation outcomes, leading to higher sales growth and higher productivity levels.
- Allows upward mobility of employees to promote
No one wants to be stuck working the same job for decades. If you manage to retain a good employee, reward them. Promote from the inside, because who knows the ins and outs of your business better than someone from the inside? Train them every step of the way, but also avoid the employee being able to actively explore leadership opportunities.
A study found that employers underestimate the time it takes for new recruits to understand their tasks and adapt to the work culture. It is expensive to add new recruits to your team on an ongoing basis. Instead, invest in the valuable employees you have. Internal promotion provides a natural trajectory for mentoring and leadership, and existing employees can usually take on responsibility without wasting time, knowing exactly how the business operates.
Internal hiring presents a positive feedback loop that all staff can observe. Employees see that you reward loyalty and dedication, and the team feels more engaged and likely to go the extra mile to stand out and be successful. Your best assets are already present in your business.
- Encourages to look to the future
Leaders need to be visionary, but traditionally they get stuck in the conduct of business. Eventually, innovation and growth falter and dry up. Employee development also obliges the company and its leaders to develop and look to the future.
Investments in employee development create a talent pool of exceptional and loyal employees who are ready for promotion and upward mobility. Leaders can also learn about the strengths and weaknesses of employees and their work culture.
Employees stay engaged while the business saves and earns more money. Development doesn’t have to be boring – it means growth. As employees become more proficient, the overall performance, innovation, production and sales of your business will increase, and that’s always good for the bottom line.