How Investing in Employee Development Increases Your ROI
Employees indicate higher levels of job satisfaction and happiness when their employer invests in training and development programs. These programs also help your employees perform better on the job.
Employees are a company’s most valuable asset, and ensuring they feel a sense of loyalty to your business increases profits by limiting hiring expenses. Below are some additional reasons why your business should invest in employee development.
1. Increases Retention
When employers devote more resources to leadership, training and development programs, they experience a higher retention rate. This means the people they hire stay with the company longer, which decreases the costs associated with replacing workers. Higher retention means less interviews and less time spent having to hire and train new employees.
2. Better Quality Employees
Offering development programs to employees’ results in having a more talented labor pool. Such programs are also an added perk you can use to recruit potential new candidates.
3. Increased Employee Loyalty
Development programs increase employee loyalty, leading to better work quality and performance. Employees who have a connection with their employer also take a more vested interest in the company’s success.
4. Higher Employee Motivation
Offering training programs to employees results in a more motivated workforce, which means higher levels of productivity.
5. Addresses Weaknesses
Training helps address and correct weaknesses employees have, which helps them grow personally and professionally.
6. Increases Consistency
Access to development and training programs guarantees all employees are aware of all company policies. Having the entire workforce knowledgeable about company-specific rules, safety requirements and discrimination policies leads to a more unified workplace.
7. Improves Ability to Promote from Within
Development programs increase a company’s ability to promote from within, as opposed to hiring outside talent. Promoting from within also saves money:
Promoted employees don’t need a lengthy adjustment period like outside hires, so they can hit the ground running on day one in their new position
New hires, on average, require a 20 percent higher salary
8. Improves Leadership Skills
Improving leadership skills results in employees stepping up and doing more, with less supervision. Workers volunteer to pick up the slack, easing the burden on supervisors.
Creating leadership and training programs saves companies money, increases productivity and profit, and results in a more unified work environment. If you are interested in creating these types of programs for your organization, contact our top recruiters today. We’re experts in helping businesses foster professional environments their employees love.