Investing in employee development may not be the first thing employers think of when recruiting and hiring. When dealing with the stresses of running a business, investing in employee growth may seem like a financial outlay that companies cannot afford. But seeing employees as an investment in the company is the sensible way to take advantage of an in-house resource.
Like family members you want to help do well, advancing employee development has benefits that reach close to home, including a boost to the company’s standing — a positive reputation is a valuable perk. While specific benefits of employee investment can vary from company to company depending on the business type, size, structure or culture, most business leaders agree on key points that impact businesses in positive, definitive ways.
Loyalty Means Better Retention
Employee turnover is a costly problem for employers. A solid employee development program can help reduce employee departures by attracting the best employees who want to stay with the company. Hourly employees in particular often do not receive the benefits salaried workers do. Noting an employee development program in the hiring process can give the competitive edge for hopeful new hires. Susan M. Heathfield, a human resource expert, suggests 14 Ways To Develop Employees here.
Ongoing Development To Promote From Within
Doesn’t it make sense that the best workers for future promotions would be people who know and feel committed to their work? A study by Matthew Bidwell, an associate professor at the Wharton School who studies work patterns, found that employees promoted from within had significantly better performance over the first two years than outside hires. Facilitate continuous learning and offer opportunities for growth so that employees know the company values them and will foster their efforts to grow.
Build Management Trust
A recent study found that one in three employees do not trust their employer, with other studies finding even lower numbers. Ouch! When management values things honesty and transparency, is willing to admit to mistakes, treats employees as people and not numbers, gives recognition for team efforts and asks for employee input, it can go a long way in maintaining trust for a healthy work environment.
Improved Engagement And Productivity
Keeping employees engaged at work pretty much guarantees increased team productivity. Employers should note that continually working on employee development through training programs and educational courses is a sure path to increasing employee productivity. As employees see they can move up taking on greater responsibilities and more stimulating projects, they are naturally more engaged and motivated.
Better Company Reputation And Goodwill
Being known as a “great place to work” is something to brag about. Word gets around when companies invest in their employees, and support for employee growth and fulfillment helps attract top quality candidates. Companies with the best reputations also invest in the community, not only with donations to worthy causes, but also by giving its presence at charitable events and via educational outreach to nurture the future workforce and its leaders.
The foregoing information is provided by City National Bank (CNB). Unless otherwise stated, opinions expressed are those of the respective authors and not necessarily those of CNB. The information is provided without warranty and no recommendation or endorsement by CNB is intended or should be inferred unless specifically stated.
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