The Value of Investing in Your Employees
In today’s modern workplace, investing in your employees is critical to your success. At ProService Hawaii, we’ve found that employers who invest in the growth and development of their employees are more likely to attract the most talented candidates and intelligently scale their companies.
While many managers are asking “how do I get my employees to be more productive?” – a better question is “how can I invest in my employees so they’re motivated to stay and equipped to be more productive?”
Laying the Foundation
Business leaders in Hawaii, such as Denis Brown, President of Big Brothers Big Sisters, know the foundation of an innovative, safe, and respectful work environment is made by encouraging a culture of empowerment.
When people know they are being heard, it makes them feel empowered.
An open line of communication between you and your team is the foundation an impactful development program. Daily team meetings or weekly tag-ups are great ways to learn how your employees are doing and where they want to improve. What’s most important is consistent communication that ensures your employees know they’re voice matters and your support is available to them.
Employee Development Programs
Employee development programs (EDP), such as stretch assignments (or special project assignments), mentoring programs, and leadership training, are a just a few examples of EDPs your team may value.
There are many types of programs you can implement, just make sure what you’re offering is not only something your employees will benefit from but something they’ll be interested in utilizing.
The Value of an Employee Development Program
Investing in your employees through Employee Development Programs can create tremendous value for your company and the way you’re perceived in the market. When you offer these programs, they have the potential to:
- Act as a company benefit: When prospecting candidates for hire, offering an EDP may be incredibly attractive to a more ambitious, ideal candidate. In fact “79% of employers believe offering benefits to employees is a critical component of attracting talent” (Burson Marsteller). These kinds of programs may also help retain those quality candidates once they’ve come aboard, as benefits are a major contributor to why employees stay with their employer.
- Build loyalty between you and your employee: When you invest in someone’s professional development, it shows that you’re dedicated to them and invested in their success. 70% of employees report that benefits customized to meet their needs would increase their loyalty to their employers (MetLife)
- Create promotable people: Leadership programs serve as opportunities to build an employee’s confidence in the areas they’re excelling in and refine what needs improvement. Promoting from within through a development program is also a great long-term strategy for scaling your company and much less expensive than recruiting new hires.
- Help employees feel engaged at work: A Gallup study showing that only 13% of employees are engaged at work – meaning only 1 out of 8 employees are making positive contributions to their companies. For an employee to feel engaged, they often need to feel motivated by goal setting and crossing milestones. EDPs offer a milestone to cross while likely helping them achieve their other goals more effectively.
Creative Ways to Invest in Your Employees
Host Team Building Activities
Team building doesn't have to mean obstacle courses and trust falls. There are many ways to foster trust and quality relationships.
You could host team building games, office retreats, or a fun outing (bowling, karaoke, etc). Gallup found that close friendships at work boost employee satisfaction by 50% and people with a best friend at work are 7x more likely to be fully engaged. The objective of team building is to set the stage for your employees to develop stronger relationships which ultimately contributes to a more satisfying work environment. While this may not seem like a direct investment in your employees' skills, fostering a collaborative, friendly environment will increase productivity and overall employee satisfaction.
Create a Healthy Work Environment
Creating a healthy environment for your team is beneficial in two ways: First, you can design a more enjoyable environment, and second, you’re supporting a healthy lifestyle which will lower company health-cost and sick days.
Some examples of workplace wellness programs are:
- Yoga classes
- Healthy lunch services
- On-site fitness center
- Meditation rooms
- Team sports leagues or healthy living competitions
Investing in your employees' health will result in a happier and healthier company where employees feel rewarded for their work.
Supporting an employee in their educational advancement is a great way to invest in your employees and create opportunities to promote from within. Denis Brown, President of Big Brothers Big Sisters offers tuition reimbursement to his employees and states; “I would definitely recommend tuition reimbursement to other small organizations. Sure, there’s a risk, but the reward is a better employee. Even if you only get the better employee for another two or three years, it might be worth the investment. Plus, many employees will appreciate the gesture enough that they’ll want to stay.”
The Monetary Value of Investing in Your Employees
Companies lose a tremendous amount of money each year to turnover. While it’s difficult to calculate the true cost of replacing a salaried employee, factors such as training time, cost of on-boarding, and customer service issues caused by new employee reveal that the cost is rather massive. Some studies predict that every time a business replaces a salaried employee, it costs 6 to 9 months’ salary on average. That means for a manager making $40,000 a year, that's $20,000 to $30,000 in recruiting and training expenses. Conversely, investing in your current staff with development programs and other benefits, you will create an engaged company culture where your employees feel they have a purpose when they show up to work.
If you’re ready to begin developing benefits and EDPs but aren’t sure where to start, our trainers at ProService Hawaii are here to guide you through the process. Give us a call!