Why it is important to invest in your employees
Should I invest in training my employees or should I not?
There is an old conversation between a CEO and a CFO where the CFO asks what happens if we invest in developing our people and they leave us? To which the CEO responds what happens if we don’t and they stay.” The fact is that many companies believe that employee development is the responsibility of the employee and the company. However, it has been shown that employee development can be mutually beneficial for both the employee and the employer. Here are some ways that employee development can benefit the employer.
- Improves Moral – When employees believe that they are working somewhere that they can achieve and grow, they are more excited and enthused about going to work. This excitement will trickle down to the overall work performance and the productivity of the company.
- Competitive advantage over competitors – As an employer you are able to boost an interest in employees and your willingness to invest in your employee which will attract more candidates to your company over your competitor. You are in a better position to attract the best candidates to your company.
- Promote your company as “Employer of Choice”. – When employees feel valued and engaged at work, they are more likely to promote your company as “the best to work” and recommend colleagues and friends. As the word travels about your company and the benefits, you are more likely to attract the best candidates.
- Decrease Retention – When a company invests in an employee, they feel valued and are less likely to leave. Replacing an employee can be costly. When employees are leaving it is difficult to maintain the same level of production even with new employees. That is because new employees need time to train and be acclimatized to the new work before they reach their full level of productivity. In addition, there are costs for training (for the employee to be at the same level as the previous employee) and hiring.
As an employer there are many measures that you can employ to invest in your employee’s development. How you choose to invest in your employee is to you, however it is important that you do engage in some investment strategy to keep them engage. This will not only benefit your employees but will undoubtedly aid your bottom line.