5 Reasons Why You Should Invest in Employee Development
5 April 2023
Running a business certainly requires various kinds of investments. Many companies invest their money and resources in advertising, research and development, social media, partnerships, technology, and much more to meet the needs of their target customers.
However, sometimes companies forget that their number one customer are their own employees. Sometimes we are busy trying to figure out why the turnover in our company is high, without first checking whether we have treated employees as top customers. Yet, as we know, employees have invested their time, energy, and best skills for the success and vision of the company.
Why is it important to invest in employees?
Here are 5 main reasons why investing in employees is important for company profits.
1. The Much More Expensive Cost of Turnover
The cost of employee turnover can be twice their salary, or more. By investing in their skills and building good relationships with employees, you can save costs. Losing skills in that area, then recruiting and training new employees can cost a lot of money. Therefore, preventing turnover is important to invest in employees from the start of their employment. Here are some tips for investing in new employees:
Give them an overview of the company's business value
Provide insight into how their role contributes to the company's mission
Set aside time for them to ask questions
Create opportunities for them to interact with other team members.
2. Training & Coaching to Retain Motivated Employees
A study by IBM found that employees are 12 times more likely to leave their jobs if companies do not help employees develop in their careers or personal lives. That's why companies should invest more in motivated employees by giving them comprehensive coaching and training opportunities. Some coaching topics that you can provide include:
Handling Toxic People
3. Equipping Employees to Manage and Develop Themselves
When a company does not invest in helping employees do their job well, employees tend to procrastinate. Most of them feel unsure how to start or finish tasks or make mistakes because they are confused about what is needed.
As a result, this will lead to micro-management that leads to higher turnover, poor teamwork, and even health problems. Investing in coaching and other job resources allows employees to manage themselves better and be more productive.
4. Employees Who Have Values Aligned with the Company Cultivate Loyalty
Many employees are willing to accept lower salaries if a company's values are closely aligned with their own values. Take the time to learn what is most meaningful to your employees about their jobs and always update company values with their input. This can cultivate greater loyalty and commitment to the organization.
5. Happy Employees, Happy Customers
When a company creates an environment that encourages employees to be more engaged, they will indirectly represent the company far more authentically and positively than advertising materials. A report from Gallup states that engaged employees can even increase sales by around 20%. In other words, happy employees will produce happy customers.
Happy Employees are the Best Company Ambassadors
Investing in employees certainly requires a considerable amount of money, time, and effort, but it is a worthwhile investment to make. Giving more attention to employee development can provide rapid financial benefits and be advantageous for the company in the long run.
Additionally, it will help employees become more successful and drive the company towards success. Make investments in your team now and reap the rewards in the future.