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Business success is attributed to many things, but retaining your employees and allowing them to grow is the foundation for a productive workforce. Employee retention is vital, which is why investing in their professional development is essential to success. The benefits of employer-sponsored professional development are not just for the employee; they also enhance organizational culture and contribute to the bottom line. It’s a win-win situation. Studies show that companies who invest in employee professional development see improved profit margins, higher sales, and a more engaged workforce.
1.) Improved Productivity
Employees are more productive when using skills that they have gained through professional development, so investing in employee professional improvement can be beneficial to business success. When employees feel valued, it improves their job satisfaction and engagement. This increased engagement leads to improved productivity because employees can handle their responsibilities and complete work tasks as efficiently as possible. When employees invest in their own personal and professional development, it shows commitment to themselves and their company, resulting in higher job satisfaction and improved retention rates. Professionals who spend time improving themselves make better decisions about where they want to advance their careers. The ASTD (American Society for Training and Development) reported that companies that offer thorough training have a 218% higher income from each employee than those with less comprehensive training, and shareholders benefit from a 6% higher return if the training expense is increased by $680 per employee.
2.) Lower Turnover Rates – Better Employee Retention
Studies have shown that companies with high retention rates and low turnover rates are more successful. Increasing employer engagement is proven to decrease employee turnover. But what can you do to improve engagement? One way is to invest in professional development so employees feel like they are utilizing their talents, and their knowledge and skills will continue to grow. They’ll know they’re working on meaningful tasks that have an impact on themselves, their teams, and their company.. Pricewaterhouse Coopers estimated that the cost of losing an employee in the first year could be up to three times the person’s salary, and according to a CED Magazine Survey, 70% of respondents said that job-related training and development opportunities directly influence their decision to stay with a company.
3.) Boost Morale and Confidence
One of the critical detractors from employee performance is a lack of confidence. Sometimes we need to get out of our way, and professional development courses have significantly boosted confidence. That confidence boost comes from multiple sources:
- Knowing their employer values them.
- Feeling confident in the knowledge they’ve gained through the professional development itself.
- Feedback from successful colleagues.
Nothing boosts morale quite like knowing that your boss cares enough about you to invest in your future success.
4.) Happier customers
In addition to increased employee productivity, businesses that invest in their employees’ professional development have more satisfied customers. The culture of learning at these companies makes them more attractive to potential hires, and they also enjoy lower attrition rates. Lower employee turnover means customers get a consistent user experience, leading to more brand loyalty. An Adobe study found that the top 10% of your customer base is spending three times more per order than the average customer, while the top 1% pays five times more. Keeping customers happy leads to more revenue and as every business owner knows, acquiring new customers is much more costly than keeping those you already have.
5.) Attract Top Talent
The job market is growing increasingly more competitive. Top talent is no longer swayed by high salaries alone. They look at total compensation packages as more than dollars. They want to know that their job is growth-focused, just like they are. It makes sense to invest as much as possible into attracting top talent because these are typically people who have many other options available to them. To appeal to these individuals, there must be monetary incentives and non-monetary ones such as time off, more autonomy, etc. According to a Gallup report, 87% of millennials rate “professional or career growth development opportunities” as important to them in a job. A significant reason employees work hard and stay with your company is to grow, learn, and improve. If you don’t invest in their professional development, it can be challenging to retain them. When you are investing in their professional development, you will see them grow as individuals and show how they work with others on your team.
6.) Competitive Edge
In business, standing still is the same as going backward. If you want to keep advancing your business- investing in your most important resource – your employees – is crucial to ensure they have the required skills to gain an edge and stay ahead of the competition. Combining the above-listed benefits leads to an advantage that may give you the edge you need to inch forward of the competition. In a world where innovation is constant, employees need to constantly learn and improve to stay ahead of their competitors. Investing in your employees is the same as investing in your business, and it delivers incredible ROI.
According to HR Magazine, companies that invest $1,500 or more in training costs per employee have, on average, a 24% higher profit margin than companies with lower training investments. Investing in employee development and growth is not only suitable for employees, but that it’s also good for business. Providing employees with more room to grow professionally can give their full potential to their organization, helping organizations be more successful, leading to increased profit and other benefits such as better customer service. Professional development prepares employees with the skills they need to accomplish their goals and produce better results for the business.
Additionally, if you are the founder or leader of a startup, you are pulled in many directions at all times. You cannot possibly be the most competent resource for every single skill your employees need. Outsourcing some of their training not only saves you time, but it gives them resources that are experts at what they need to learn. You diversify the knowledge base of your business, leading innovation and ultimately giving you one of the significant foundations you need to be a successful business.
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