Employee development is critical for keeping employees motivated, building an internal talent pipeline, and retaining top talent, according to many businesses. In fact, this thesis is backed up by many studies and research papers.
In that context, according to a Deloitte survey of millennials, 63% of them believe that their leadership abilities are not being completely developed, with 71% of them planning to leave their job position in the next two years if they remain unhappy with how their leadership skills are being developed in the company. Needless to point out, as time passes by, these figures are steadily increasing.
In that regard, the aforementioned numbers alone demonstrate how a company’s failure to invest in staff development may be very costly for the company’s future. For that reason, it’s essential that each company invests time and allocates a sufficient budget for effective employee development programs.
To make things easier for you and give you an idea of why workforce development is essential for your company regardless of your company size, here are six reasons why you need it and how employee development can help your company develop further.
It Keeps Employees Interested In Their Work
As the number of disengaged employees has risen steadily over the last few years, it’s pretty evident that employees who are disengaged are less productive and more likely to burn out. Furthermore, they are more inclined to depart if they do not have a sense of connection or loyalty to their workplace. Burnout and disengagement are on the rise, thanks to more remote work that blurs the barriers between work and home, as well as the possible loss of camaraderie that office environments normally provide.
Investing in employee development gives employees the opportunity to be enthusiastic about progressing and learning. So, whether it’s the usual volunteer projects or some fun virtual team building activities, including these strategies in your management and practicing new skills together will have your employees build stronger bonds with their coworkers.
It Helps Your Company Be Ready For The Future
As we continue to deal with the aftermath of the pandemic, it’s clear that many old, out-of-date workplace practices need to be changed. What we thought we knew about how people can and want to work is evolving, with adaptability playing an important role in building a resilient workforce.
For that reason, employees must be better prepared for whatever changes come their way by focusing on skills and techniques like effective adaptability and communication, among other things. One of the best ways to help your workforce develop their skills in adaptability and communication is through organizing a group coaching program to help them onboard and embrace your refurbished company culture.
It Develops Promotable Staff And Increases The Talent Pipeline Strength
Investing in employee development gives a clear path for employees to have upward mobility, in addition to merely keeping them in the organization.
There are numerous advantages to building a strong internal talent pipeline rather than continually turning outside the organization to attract more high-level professionals. Employees who have already worked for the organization are familiar with the ins and outs, decreasing ramp-up time and demonstrating loyalty.
It Pays Off In The Long Run
Companies may be reluctant to invest in staff development even though the benefits aren’t always apparent. However, giving opportunities for employee growth pays off in the long run with increased employee retention being the most visible benefit.
According to LinkedIn’s Workforce Learning Report, 93% of employees would gladly stay at a firm longer than their initial anticipation if the company continually invests in their careers. For that reason, when deciding whether to allocate a budget for employee development, consider the potential return on investment if the majority of the staff decides to stay with your company in the years to come.
It Helps In The Recruitment Of Excellent New Staff
Employees in the modern workplace want more than a transactional relationship at work, especially given that “work” has often spilled over into “home.” They want to be seen as more than just a company’s labor resource. So, when a job seeker sees a company engage in employee development, they know the company values them and wants to see them improve professionally and personally.
Strengthens The Employer’s Reputation
Investing in continuing education helps you establish a positive reputation as a caring employer. Once the word gets out, you’ll need to be prepared to deal with an inflow of job applications and clients. It reflects positively on your company when you do something kind for your employees. Offering incentives for conference participation and ongoing training, as well as a little stipend for books, foster a culture of continuous growth, which is a great reputation to have.
Final Thoughts
So, yes, investing in your employees’ personal development is key to making sure that you end up with a motivated, happy and healthy team. That being said, the more you invest in your employees, the more they will reward you with their loyalty and their hard work. At the same time, they’ll become better employees, which will lead to further investment from you as an employer. It’s a cycle that many companies have benefited from overtime.