Many employers are finally beginning to understand that employee development is essential to keeping employees engaged, developing an internal talent pipeline, and retaining top talent.
Research backs that up. A Deloitte survey of Millennials found that 63% say their leadership skills are underdeveloped, and 71% of employees likely to leave the company within the next two years are concerned about their leadership skills. I am dissatisfied with the way my skills are being developed. That number continues to grow.
These statistics alone demonstrate that not investing in employee development can be detrimental to your company. Additionally, it can often be difficult to get buy-in to allocate time and funding for strong employee development programs.
Here are five ways employee development can benefit your organization now and in the future.
5 reasons to invest in employee development
1. It helps you attract the best employees.
In today's workplaces, employees are looking for relationships that go beyond business transactions, especially as “work” often permeates “home.” They want to feel as if they are more than just a workforce to the company. In fact, 82% of employees want their organization to see them as a person with personal goals and aspirations, not just a resource (gartner).
When job seekers learn that a company invests in the development of their employees, they know that the company values them and wants them to grow professionally and personally. . According to the University of Phoenix Career Institute's 2022 Career Optimism Index, 68% of respondents said they would be more likely to stay with their current employer if they were offered more upskilling opportunities. doing.
Additionally, job seekers who want to develop are good candidates for open positions because they demonstrate a desire to improve their skills and, in turn, contribute to the company's success.
2. Keep your employees engaged.
A 2023 Gallup poll found that nearly 70% of U.S. employees are disengaged at work.
Disengaged employees are less productive and more prone to burnout. They feel no connection or loyalty to their workplace and are more likely to leave. Burnout and disengagement continue to rise due to increased remote work, blurring the lines between work and home, and the potential lack of camaraderie normally available in an office environment.
Investing in employee development creates opportunities for employees to feel excited about learning and growing. It also creates opportunities for employees to build deeper connections as they practice new skills together.
3. It is an investment that will pay off in the long run.
Companies may be hesitant to invest in employee development because the benefits are not necessarily immediate. However, providing a path for employee development can pay big dividends in the long run.
The most noticeable effect is improved employee retention. According to LinkedIn's Workforce Learning Report, 93% of employees would stay longer with a company that invested in their career, and SHRM research shows that the average cost of losing an employee is between 6 and 70% of their salary. We know it could be 9 months.
Retaining just one employee is rewarding because the company offers employee development. Imagine the return on investment if the majority of your employees stayed with your company for many years.
4. Create a promotable workforce and strengthen your internal talent pipeline.
Investing in employee development, rather than simply retaining employees, creates a clear path for upward mobility for employees.
There are many benefits to building a robust internal talent pipeline, rather than constantly looking outside your organization to hire more senior-level employees. Employees who have already joined the company know how to reduce ramp-up time and are already loyal.
5. It will help you organization Prepare for the future.
As we continue to battle the effects of the pandemic, it's clear that there were many traditional and outdated workplace practices that needed to evolve.What you thought you knew about how employees work can and like The way we work is changing and adaptability will be a key element in creating a more resilient workforce.
In LinkedIn's Global Talent Trends 2019 report, 92% of human resources professionals say soft skills are as important or more important than hard skills in recruiting. And he found 89% say new hires don't succeed because they lack important soft skills. Investing in employee development goes beyond just improving your employees' technical skills. Focusing on soft skills such as effective communication, adaptability, etc. will help ensure that employees are able to adapt to any changes they encounter.
While it can be easy to get caught up in running and managing the day-to-day operations of your business, employee development must be part of every modern organization's business strategy.
