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by William Craig
August 28, 2018
by William Craig
August 28, 2018
Making it through the day becomes the goal of most employees, along with bringing home a paycheck. Both employees and employers suffer when employee goals fail to evolve beyond those two factors.
The pressures of everyday business weigh on shoulders of all professionals, and leaders feel like they can’t afford to invest in their employees as much as they’d like — it’s just not realistic. When employers take this viewpoint, they fail their employees and their company. The backbone of the company is its employees.
Why Leaders Should Invest in Employees
When you strategically invest in employees, you attract and keep all the best candidates, and you also build a strong work culture unafraid of innovation, change, failure and success. Employees take the bull by its horns and run with ideas, instead of running away from problems. Here are five reasons why employers should invest more in employee development, and thus, company success.
Employers face obstacles with employee retention and must continue to hire to keep their talent pool filled — 40 percent of dissatisfied employees leave their jobs, and each disengaged employee costs employers up to $550 a person annually. Retention creates a major expense and challenge for employers and developing an employment development program relieves this burden.
Showing new hires their development matters will make them less likely to move on to another company, and this gives the employer a competitive edge. The employee feels valued and trusts the employer.
Investing in continual learning boosts your reputation as an employer who cares. Word gets out, and you’ll need to guard against an influx of customers and applications from candidates. You do good for your employees, and it draws good back to your company. Offering rewards for conference attendance and continuing training or a small stipend for books cultivates an environment for continual improvement, and that’s an excellent reputation for all to possess.
Does your company invest in human transfer? Learning never stops after college, and recent graduates and experienced professionals do well with more enrichment and vocational training.
One study revealed that human resource transfer positively impacts firm performance through innovation. Companies should develop human resource transfer by employing recent graduates, then providing their entire staff with further vocational training. Researchers found this course of action produces performance benefits via innovation outcomes, which leads to sales growth and higher productivity levels.
No one wants to get stuck working the same job for decades. If you manage to retain a good employee, reward them. Promote from within — because who knows the daily ins and outs of your business better than someone on the inside? Train them every step of the way, but also get out of their way so the employee can actively explore leadership opportunities.
One study found employers underestimate the length of time it takes for new hires to understand their duties and adjust to the work culture. Continually adding new hires to your team gets expensive — instead, invest in the valuable employees you have. Internal promotion provides a natural trajectory for mentoring and leadership, and existing employees typically can accept responsibility without skipping a beat, knowing exactly how the company runs.
Hiring from within presents a positive feedback loop for the whole staff to observe. Employees see that you reward loyalty and dedication, and the team feels more engaged and likely to put in extra effort to stand out and succeed. Your best assets are already present in your company.
Leaders must remain visionaries but getting stuck in the way of conducting business traditionally happens. Eventually, innovation and growth falter and dry up. Employee development also forces the company and its leaders to grow and look to the future.
Investments in employee development create a talent pool of exceptional, 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 remain engaged while the company saves and earns more money. Development doesn’t have to be boring — it means growth. As employees become more proficient, your company’s overall performance, innovation, output and sales will increase, and that’s always good for the bottom line.