Monday, 16 November 2015

Four Reasons Why Organizations Should Invest In Employee Development

Market pressure and a desire to succeed means that it is only logical that organizations and managers do what they can to deliver results and outperform the competition. So, for some, taking employees away from their workstations for training and development purpose is often perceived as counter-productive.

During my 26 years’ professional experience in corporate life, and 10 years as a transformation coach, I have worked with thousands of successful entrepreneurs, managers, leaders and organizations to help them adopt a positive culture when it comes to employee development.

Throughout this time, I have learned hugely through observing, assessing and interacting with workers at every level and, in this article, I would like to share the four reasons why employee development and training is vitally important to organizational success:

1. The organization will be a talent magnet, attracting the best talent in the market, while, at the same time, retaining the best employees. Replacing a member of staff can, depending on the role, cost the company anywhere between $50,000 and $100,000.

2. Employee development creates a talent pool containing the future leaders of the organization. Adopting a ‘promote-from-within’ culture offers the following advantages:
  •  Boost employee morale and motivation
  • Improve staff retention – ‘60% of employees choose to stay with an employer that invests in their professional development‘ – CIPD (Chartered Institute of Personnel and Development)
  • Avoid burnout and an negative attitude in the workplace.

3. Employee engagement and productivity increases.

4. Generate a positive return on investment – ‘Untrained employees take up to six times longer to perform the same task as trained employees’ – Hewlett Packard

Also – ‘Organizations that invest in staff development outperform the market by 45%’ – ASTD (Association for Talent Development)

Organizations need to see the development of employees as an investment rather than an expense. While some companies might be wary of spending too much on training, in case the employee leaves soon after, the development and training of employees is a huge benefit to companies in the long term. So, perhaps it should be a case of can you afford not to develop your employees.

About the Author: 

Samir Bata
Samir Bata's expertise in Management and Leadership has been built in 26 years in key positions in sales, marketing, general operations management, and business development. In addition to his management and leadership expertise, Samir is also a Senior Associate at MCE. 

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  1. Agreed with all the five points and these are undoubtedly the major points in any of the organization. Look the equation is very simple, if a nation will not spend expenses on public that will collide and drown soon, why? Because they are your primary human resources, similarly in any organization your employee is your human resource, if you will not put money on your people how will they increase productivity? So it is very necessary to make your employees satisfied.

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