In this video, learn the benefits of professional development.
- I saw this exchange online once between a CEO and a manager. The manager said, what if we spend money training our people and they leave the company? The CEO responded by saying, what if we don't and they stay? Definitely food for thought. As you know employees are your greatest company asset. They bring the creativity and innovation needed to keep your company competitive. It only makes sense to invest in the asset that will bring you the most returns.
Yet there are managers who don't think this way. Any money spent having to train employees signals to them that the employee is just not smart enough or talented enough to get the job done. This is where you have to use your influence as an HR pro. In a rapidly changing economic and business environment, investing in the continual growth and development of your employees is critical to remain competitive. However when companies go through lean economic times one of the first areas to receive budget cuts is training and development.
As the HR pro, your job is to help business leaders weigh the cost and benefits of professional development so they can make a well-informed decision. Some reasons why companies should invest in professional development are because it helps to attract talented employees, helps with succession planning by preparing high potential employees for future promotions, and keeps employees engaged. Engagement is a huge plus because according to the Workplace Research Foundation, engaged employees are 38% more likely to have above average productivity.
Additionally, well trained employees help you save money because they work more efficiently and with fewer errors. Take a look at the San Francisco based company Thumbtack. They have an employee development program in place that goes beyond one-time onboarding or legal compliance training. Thumbtack's training program includes ongoing training, where managers provide weekly feedback to employees and give employees access to knowledge databases. Thumbtack estimates that this program has saved them $10,000 per month because employees do their jobs more efficiently.
At yet another company Digineer, they found that after using the company's certification reimbursement program, an employee was able to generate $100,000 more in annual revenue for the company by increasing his bill rate. Invest in your people and the return on investment is notable. Finally professional development improves employee retention. In a Gallup survey 87% of millennials noted professional development opportunities as important to them at work.
In a Deloitte study it was reported that two thirds of millennials plan to quit their jobs within two years. One of the reasons cited was lack of an investment and interest by their employer in their professional or career growth and development. This is a costly risk for employers, given that millennials make up the majority of the work force. According to the Society for Human Resource Management, every time a company replaces a salaried employee, it costs them six to nine months in salary.
If that's a senior role, you can see how those costs can climb. Thinking of senior roles wouldn't it be better to have to replace junior roles, because you've adequately prepared high potential employees to fill the more expensive, higher skilled senior positions? This is the kind of strategic thinking that you bring to the table when engaging with other leaders and decision makers.
- Modeling ethical standards
- Managing legal risks
- Finding and interviewing candidates
- Designing training and measuring its effectiveness
- Designing total rewards
- Promoting diversity and inclusion
- Employee engagement strategies
- Managing complaints and grievances
- Implementing workplace programs