Why do some company’s invest in their employees and how do they benefit from their investment? Perhaps the question that needs to be asked is, why doesn’t every company invest in their employees?
Lets begin by understanding what the benefits are from the investments made to grow your employees. The American Institute of Stress has revealed that 54% of employees value personal and career development even more than salary and benefits. Another 44% of employees site a lack of opportunities and advancement as a top cause of workplace stress, according to Gallup. These statistics indicate that a large percentage of employees want to be a part of a company that realize and appreciate the importance of investing in their people.
Lets look at the benefits:
1. Loyalty – When employees feel that leadership cares about them and their growth they become more emotionally engaged. This results in deeper sense of commitment to the company and their mission. They are willing to go above and beyond in effort and attitude. This is the key to increased overall production.
2. Morale – A positive attitude overcomes a lot in the workplace. When people feel valued and respected they experience greater joy and fulfillment at work. Better morale also reduces workplace stress dramatically. This will result in healthier employees. Who doesn’t want a reduction in lost workdays and healthcare expenditures?
3. Retention – It goes to reason that happier employees stay longer. Why would they want to leave a company that doesn’t just value them as employees, but as people too?
4. Reputation – What company doesn’t want to be known as the best place to work? Companies that get this have an endless supply to the best talent available. Great talent is the key to continual growth and innovation.
5. Communication – Is one of the most important elements to a healthy and growing company. When the workplace encourages open and honest dialogue, people feel valued. This can transcend an average company to a great company.
6. Production – The U.S. Department of Labor and Statistics has reported that employee disengagement costs businesses between 450 – 500 billion dollars annually in lost production. One of the primary reasons these numbers exist is due to a lack of or ineffective engagement procedures. Conversely, Gallup has stated that companies who continually reinvest in their workforce experience up to 20% of increased production. What is that worth to your company?
7. ROI – Everyone wants to know the ROI for these programs. Instead they should ask what is the benefit of people staying longer, reduced recruitment costs, a more productive workforce, and happier and healthier employees? According to Espresa, it has been reported that a more engaged workforce can increase profitability up to 21%. What does that mean to your bottom line?
It is clear based on these 7 benefits identified here that it is essential to examine how you are engaging your people. Start by asking the question, is what we are doing effective? Do we need to do more or perhaps something different?
To help you reach all your 2018 goals I would suggest you meet with your team and examine these questions to help you determine the path you need to take. It has been said doing the same thing over and over and expecting different results is insane. Stop the frustration, reduce your stress and create a plan that will help your company reach new heights in 2018.