Being in the business of learning and development, I am often asked the question, “If we invest money in training our employees, what happens when they leave?” To which I say, “What if you don’t invest in training your employee and they decide to stay?”
Your business may have the best product, well defined strategies but without the right people executing these plans, it will not achieve its fullest potential. It is your employees right from the front line to C-suite who work towards delivering your mission and vision. Therefore, it is critical for us to make sure that investing in people is ingrained in our company culture.
This shows that, on one hand, it is critical to invest in improving our people. But on the other hand, employee turnover is still a problem for companies.
The cost of replacing an employee, according to Employee Benefits News, can go up to 33% of the employees annual salary.
Source: Employee Benefits News
As employers we must provide competitive wages, health benefits, sufficient holidays etc. to attract good talent, but this may not be enough. To maximize employee satisfaction and potential, we must develop a culture of being a good company to work at. There is an inversely proportional relationship between employee retention and being a good company to work at.
So, what can we do to develop such a culture?
Hire the right people:
Current practices of hiring based on relevant experiences or technical skills is no longer enough. Employers should consider adopting psychometric assessments into their hiring process. This assessment will give you a view into the candidate’s soft skills, personality traits and characteristics. Thus, enabling you to hire for organisational fit and not just experience.
Motivate your employees:
The biggest motivator for an employee is to see their efforts bear fruit. By showing employees how they are contributing to the bigger picture of the company, allows them to feel valued. When your employees feel valued, they become advocates for your company, not only externally but internally as well.
Leadership guru and author of "Start With Why" Simon Sinek says, "When people are financially invested, they want a return. When people are emotionally invested, they want to contribute."
Create a growth plan:
Invest in the development of your employees by creating a transparent growth plan for each employee when they join. This plan should detail what the employee needs to accomplish to grow in the organisation. This will give the employee a goal to work towards which translates into a committed workforce for the employee.
Invest in skilling:
Conducting trainings in relevant skills that benefit both your employee and company, is an investment in your company’s future. Since your employees are most likely from different backgrounds, cultures and generations, learning and development programs should be adapted to add equal value in each member of your workforce.