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Your employees are the backbone of your organisation, as their work allows your business to flourish. Ultimately, the more productive your employees are, the faster your business will grow. Therefore, when you invest in your employees, you also invest in your company’s growth. Investing in your employees’ development has a range of benefits.

This article will take you through five key reasons why employee development is one of the critical investments you can make as a business owner.

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What is Employee Development?

Employee development refers to the mutual effort you and your employees direct towards improving their skill set and industry knowledge. Moreover, employee development may take any number of forms. For example, you might train your employees on new technologies available or allow them to attend workshops to develop their hard or soft skills.

Whatever it may be, employee development ensures your staff are staying on top of their game to help your business grow.

Employee Retention

Firstly, high-performing employees will likely enjoy a challenge. In turn, they will seek opportunities for personal growth in their day-to-day work. By providing training and development opportunities, you can provide these challenges and chances for growth within your organisation. Indeed, this will give your employees the skills they need to take on new tasks, ensuring they stay engaged at work.

For example, providing your employees with leadership training gives them the essential skills to take on management tasks. Additionally, giving employees the support they need to tackle new challenges successfully will encourage personal growth.

Employees that can pursue growth within your business are less likely to look elsewhere for new challenges, therefore lowering your turnover rate.

Improved Productivity

Investing in courses addressing hard and soft skills will likely help your employees work more effectively. The better your employees are at their job, the better the chance that your business will succeed. 

For example, providing a training course that teaches your employees how to use Google Docs will help them effectively tackle projects that require collaboration on documents. Additionally, investing in a public speaking course can improve the quality of your presentations, allowing employees to represent your business at a higher standard externally. Furthermore, training can help your employees refine and expand their skills, improving their productivity at work.

Attracts Top Talent

High-performing employees will want to work for companies that provide growth opportunities. Training can give them the support they need to take on challenging work and excel in an organisation. In addition, your current employees are the brand ambassadors for your company’s culture. Therefore, by investing in them, you are showing the world that you value the development of your employees.

For example, Zynga provides graduates with a mentoring program focused on innovation and career growth. This demonstrates their value on their employees’ development, making them an attractive workplace for top graduates.

Promote Internally

Training allows your employees to excel at their jobs. In turn, this allows you to give them positions with greater responsibility. Ultimately, having high-performing employees, you can promote will mean you do not have to recruit managers externally. Similarly, it helps you retain high-performing employees as they can see opportunities for growth within your company.

Further, by investing in your employees, you are subsequently investing in the future leaders of your business.

For example, Deloitte’s Partner Pipeline Program exposes high-performing directors to the company’s executives, training them to succeed in executive positions.

A Culture of Constant Learning

Placing value on training and development creates a culture of constant learning and improvement within your organisation. In a time of rapid change and innovation, staying up to date with new market trends is vital. In addition, providing opportunities for your employees to learn fosters original thinking.

For example, paying employees to attend blockchain or artificial intelligence seminars can help them realise the possibilities of technology and encourage them to think about ways to leverage it at work. Most importantly, investing in your employees creates a culture of learning that: 

  • drives innovation;
  • encourages constant self-improvement; and 
  • above all, it helps your business stay ahead of competitors.

Improve Job Satisfaction

It is essential that your employees feel satisfied with their job. This is a critical component of business retention, as your staff feel they benefit from working for your company over other potential employers. For instance, providing perks such as staff lunches is one way to improve job satisfaction. However, investing in your employees’ development is a much more sustainable way to improve job satisfaction. 

When employees receive training, they see that you are investing in them and will feel a sense of appreciation from you as their employer. In turn, they will feel incredible pride about working for your business, and their overall satisfaction will increase.

Key Takeaways

Your employees’ work is essential to driving your business towards success. So to give your business the best chance at this, you must invest in your employees’ development and training. Ultimately, placing value on investing in your employees will, in turn, improve:

  • employee retention rates;
  • workplace productivity;
  • your ability to attract top talent;
  • your ability to promote internally;
  • a culture of constant learning; and
  • job satisfaction. 

If you need assistance regarding the employees in your business, our experienced employment lawyers can assist as part of our LegalVision membership. You will have unlimited access to lawyers to answer your questions and draft and review your documents for a low monthly fee. Call us today on 1300 544 755 or visit our membership page.

Frequently Asked Questions

What is employee development?

Employee development refers to the mutual efforts between you and your employees to improve their skill sets and knowledge base in your industry. Employee development may take any number of forms. For example, you might train your employees on new technologies available or allow them to attend workshops to develop their hard or soft skills. 

What are the benefits of investing in your employee’s development?

Placing value on investing in your employees has a range of benefits. It can improve employee retention rates and workplace productivity and also attract top talent. Investing in your employees’ development also furthers your ability to promote internally, facilitates a culture of constant learning and increases job satisfaction.

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