Why employers should invest in their employees’ professional development
Published by CME Manitoba on March 09, 2017
By Leah Binkley, Marketing & Communications Director, Pinnacle
For many employees, receiving job-specific training can be the difference between seeking a new job and staying loyal to a current employer. In fact, the 2014 Employee Job Satisfaction and Engagement survey of the Society for Human Resource Management (SHRM) reported, “40 per cent of employees rated job-specific training as ‘very important’ to their satisfaction, followed by professional development at 36 per cent.” Most companies offer training to new hires during the onboarding process, but not every workplace continues to develop its employees when they are well into their careers. This is a mistake that can have serious consequences.
Does cutting back on learning and development cost companies more than it saves them?
When organizational leaders cut employee training funds, it is usually not with the motive of being stingy, but of retaining precious dollars. Unfortunately for them, holding back on job-specific training and leadership development typically has the exact opposite effect than the one they desire, especially with millennials. A 2016 Deloitte survey found that 70 per cent of millennials cite a lack of leadership development as the main reason for wanting to leave their current position.
People are the most valuable assets a business will ever have. Ultimately, not investing in employees may cost companies more money than it saves them. Why? Because, a lack of job-specific training can increase employee turnover, decrease employee productivity, and damage company culture. Conversely, when companies invest in the professional development of their personnel, wonderful things happen.
Benefits of investing in employees’ professional development
Companies need to be investing money into learning and development. When this type of investment is made, employers often enjoy the following ROI:
Improved retention rates – When you invest in something, you place value on it. Your employees feel honored when you take special efforts to train them well. An employee who feels special and taken care of is far less likely to seek a new employer.
More-productive teams – Not only does training change the way your employees feel about your company; it also changes how they perform for it. Training equips employees with the skills they need to do their jobs with excellence. Skilled workers become productive workers who create productive teams.
Incredible company culture – Have you ever noticed how some of the wealthiest people you know are often surprisingly generous? Even the simplest acts of generosity seem to open doors of opportunity for the giver. This is as true for organizations as it is for individuals. Investing in an employee’s professional development and future is a generous act that positions companies for success and growth. “What goes around comes around” is, in many cases, applicable to the workplace. Without fail, generosity improves company culture by setting a corporation up for the favor to be returned many times over in a variety of ways.
Providing employees with ongoing training will cost hard-earned revenue. There is no denying this. However, being tight-fisted with training may have a heftier price tag.
About the author
Leah Binkley is the Marketing & Communications Director for Pinnacle.
Pinnacle is proud to be celebrating 15 years as Winnipeg’s largest, locally owned recruitment firm. Our 25 industry-specialized recruiters are dedicated to matching exceptional people with top Manitoba companies across a broad spectrum of industries through two key areas of focus: Executive & Professional Search and Staffing & Recruiting. At Pinnacle, we believe the biggest difference between good organizations and great organizations is having the right people in the right roles, making talent the single most important driver of corporate success. Since 2002, our passion has been finding those game changers who make that difference to an organization. Pinnacle, We Know People. Visit pinnacle.jobs to learn more.