POWERING WORKPLACE PERFORMANCE

13 AUGUST, 2018

8 WAYS INVESTING IN STAFF DEVELOPMENT IMPROVES YOUR BOTTOM LINE

What is employee development and why is investing in employees important?

Employee development refers to learning and performance solutions that provide your team with skills to help them succeed in their job. It can also encompass other management functions like recruitment and selection and policies and procedures, though training and development is probably the key element for employee development plans.

Since human resources play a critical role in any business, employee development and training can support your organisation’s profitability, whether it’s through higher customer satisfaction, digital learning, or other factors.

The Benefits of Employee Development

In a business environment that’s constantly evolving in response to emerging technologies and best practices, organisations must remain proactive when navigating industry trends and the increasingly competitive marketplace.

The importance of investing in employees is a topical point of discussion amongst businesses looking to shape their workforce for tomorrow’s business climate. But what exactly is employee development? And is it suitable for every organisation to invest in employee training?

9 worthwhile benefits of investing in employee development

Employee development allows businesses to combine short-term and long-term goals through investing in employees and the growth of their workforce. Employee development takes numerous forms depending on the role of the individual undertaking it and the industry that they work in. This means that any organisation, no matter its size or industry, can benefit from investing in employees.

But in order to fully capitalise on the benefits of employee development, an organisation must first adopt a holistic approach to learning and actively invest in employee training.

Here are 9 ways that organisations can enhance their employee development initiatives and support a workplace culture that incentivises adaptive thinking:

1. Improve employee performance and client satisfaction

Well-trained employees can deliver better customer service while acting as a positive representative of your company. They can offer better product or service quality because they have the necessary skills for their role. Your employees could be more knowledgeable about products and services, for example, when dealing with customers. They might be able to resolve customer issues more quickly and effectively than otherwise.

2. Drive higher employee productivity and efficiency

Productivity is associated with training and development programs. Employees who are well-supported with a staff development plan are more likely to be engaged and energised about their future with the organisation. This translates to better processes, operations, product quality, and customer satisfaction.

If your employees are more productive, your business is extracting more value out of each person. Higher productivity can have a direct impact on profitability, allowing you to generate more revenue with the same inputs.

3. Promote employee self-management

As your employees become more productive and effective in their roles, you might be able to reduce the need for supervision.  Promoting self-management could allow you to reallocate direct line-management resources to other areas where they’re needed. Employees who are empowered in their roles can be more effective, satisfied, and committed. Additionally, by lowering the need for supervision, your business can make better use of its management personnel.

4. Encourage employee self-reflection

Self-reflection is vital to personal development.

Employee development can encourage self-reflection, which is a critical part of personal growth. Employees that are inspired to self-reflect are able to identify both their strengths and weaknesses, and analyse how both contribute to their overall performance. This level of insight is key to enabling continuous improvement, allowing employees to build relevant new skills that will enhance their performance.

5. Ensure employees are engaged and satisfied

Employee development can also have a positive impact on profit levels through higher employee engagement. By investing in training and development efforts, you’re demonstrating your value to your team. Staff who feel cared for and supported tend to feel more engaged, loyal, and committed to the organisation.

Additionally, training can give team members an evolving set of skills they need to continue to succeed in their jobs. If your employees have the skills for their job, they are comparatively more likely to feel and be productive, experience job satisfaction, and stay engaged.

Strong employee engagement could have other flow-on effects, such as loyalty, morale, trust, innovation, creativity, and enthusiasm for day-to-day tasks. All of these can have a positive impact on profit.

6. Boost employee attendance and retention

Absenteeism and turnover can pose major costs for organisations. However, if you invest in your employees, you are taking a proactive approach to encouraging higher job satisfaction and employee engagement. In turn, this can reduce absenteeism and turnover.

Ultimately, showing ongoing interest in employee development is closely linked to having a positive impact on your bottom line through higher retention and lower recruitment and employee costs.

7. Support innovative thinking in employees

Providing training and development opportunities can encourage your employees to have new ideas and develop new processes and approaches.

Skill enrichment gives your team the insight, knowledge, and competencies to develop new and novel ways to deliver quality outcomes for the customer. For your managers, it can also have a positive impact on profit by ensuring they’re able to manage your human resources successfully.

8. Strengthen your internal talent pipeline 

With well-trained, productive, and engaged employees, your organisation has a foundation for maximising other inputs, including time, existing capital, and other non-human resources. Whether it’s a micro-credential, on-the-job training, or a higher qualification, your investment in training has a compounding effect on quality. For example, well-trained staff will be able to use your technology tools and infrastructure more effectively.

Highly skilled employees allow businesses to reduce the risk of costly errors, improve the quality of their products and services, and fully leverage available resources and inputs. This in turn empowers businesses to improve internal processes, capitalise on existing strengths and potentially achieve higher profits.

9. Protect your organisation from industry disruption

Human resources will continue to play a vital part in your organisation over the longer term. Your employee training plan can be mapped out in alignment with your longer-term strategic goals, which might change as market conditions shift. By training your staff, you can ensure your organisation has the skill set to compete, scale up, and remain profitable in the longer term – no matter what the future brings.

Learn how DeakinCo. can help maximise your employee development ROI

When implemented properly, staff training and development can have a powerful impact on your organisation’s profitability by improving customer satisfaction, business processes and employee engagement. Implementing a comprehensive staff development plan can allow your organisation to achieve higher profitability in the short-term while simultaneously ensuring the long-term stability of your organisation.

DeakinCo. has been a trusted partner in corporate education and training for leading organisations across Australia for more than 30 years. We provide bespoke learning and development solutions to help you prepare your workforce for the future. Explore our website to find out more about how DeakinCo. can help transform your workforce, or contact our team today for a discussion.

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