Small and medium-sized business owners are focused on the growth of their business, and without an in-house HR expert, adding employee development to the list of responsibilities may feel overwhelming. However, a Gallup study finds that organizations that have made a strategic investment in employee development report 11% greater profitability and are twice as likely to retain their employees.
Moreover, 22% of small and medium-sized businesses cite employee recruitment and retention as one of their top business problems.
Without employee development, strong businesses are left weaker year after year as their employees’ expertise falls behind industry expectations. That is why investing time and money on employee development is a critical part of a successful business strategy.
Want to know how employee development programs benefit your business?
It Helps to Recruit Employees
Successful job candidates are looking for opportunities that help them learn, grow, and advance their career. If companies want to attract the best talent, they have to communicate how their organization can help candidates with professional advancement, and that goes beyond simply giving them promotions and new titles. This requires asking thoughtful questions about which new skills the candidate would like to develop, and then demonstrating how the company can help them to achieve this through formal and informal training.
It Helps to Retain Employees
As it turns out, talent is seeking more than just a steady paycheque. According to research by Catalyst, 35% of women and 32% of men stated that they would leave a job for the chance to develop new skills and competencies. This factor was second only to increased compensation. This underlines the importance of developing talent within your company.
For small and medium-sized businesses, losing staff has many downsides, including expensive hiring searches, lost company knowledge and a negative impact on employee morale. If your organization is struggling with recruitment and high employee turnover, perhaps it’s time to boost your employee development and training programs.
It Helps to Create a Healthy Organizational Culture
Providing opportunities for growth creates employee loyalty and demonstrates an organizations respect and appreciation for each employee. A commitment to employee development establishes a shared vision around the benefits of growth for employees and the business. Dedicated training and development programs foster how strongly employees feel connected to their employment and the work they perform. Research has shown that strong employee engagement helps to improve the productivity of employees, reduces absenteeism and increases profitability.
Billionaire and serial entrepreneur, Richard Branson, says on employee development and engagement:
“It should go without saying, if the person who works at your company is 100 percent proud of the brand and you give them the tools to do a good job, and they are treated well, they’re going to be happy. If the person who works at your company is not appreciated, they are not going to do things with a smile. Effectively, in the end, shareholders do well, the customers do better, and your staff remains happy.”
It Helps to Build a Consistent, Stable Business
The investment companies make in employee development contribute positively to the long-term stability of their business. When employees are challenged and experience employee development, it’s less likely that they will leave. With a lower rate of turnover, organizations create a consistent customer experience.
Furthermore, it preserves vital institutional knowledge, which can increase productivity by reducing time and resources spent on onboarding new employees. It also prevents mistakes caused by lack of information or experience and it limits the risk of disruption due to employee absence or departure.
Conclusion
As the business landscape continues to shift around us, companies need to think strategically about employee development and the role they play in it. Those that want to remain competitive and retain top talent should be meeting the rapid rate of change they face with a similar sense of urgency. To do this, it is critical for companies to have an HR professional invested in their business to help prioritize a culture of continued learning in their organizations. This will not only allow them to remain agile in the face of disruption, but will also create a more engaged workforce that has the tools to drive innovation for the future.
If you require help to apply this information to your particular situation, contact our expert HR team for a complimentary consultation at info@firstavehr.ca or by phone at 647-406-4476.
Your HR Solution
Between recruiting and retaining employees to managing employee performance, there are many challenges small and medium-sized businesses face when it comes to the responsibilities of HR management. Outsourcing HR through First Avenue Consulting can help businesses save time and money and allow you to focus on growing your business.
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