Investing wisely in business can be complicated as there could be a lot to invest too but it’s said that most return on investment (ROI) happens when you invest in employees. 76% of employees are said to be looking for jobs that offer career growth opportunities.
However, most businesses do not consider this as an important aspect of employee satisfaction and retention. According to studies, only 30-40% of businesses worldwide invest for the growth and welfare of their employees. Some don’t realize the impact it could give them in the long run.
Investing in employee welfare is proven to be effective in boosting employees’ performance and ramping up business revenues. Investing in employees should be any company’s top priority. Keep in mind that employees are the engine that keeps your company running so it’s advisable to fuel the engine with great perks. Here’s why.
It creates a common vision
A company with a clear vision can positively lead employees in the same direction. By leading them, directly impacts the trust between the company & employees. To make it simpler, leadership can help serve those who are working to achieve the common vision. One way to do this is to keep everyone engages.
When employees feel engaged, they feel productive. Provide them the tools for success so they feel that you are united for one vision and that is to succeed. To make them feel engaged means giving them pride in what they do and drive them to work hard. This gives them the opportunity to visualize their growth and the company’s future.
It reduces the turnover rate
According to studies, 40% of employees not having enough training leave their jobs within the first year. You must know as an employer that the hiring process is tedious and most of the time leads to expenses and waste time. Also having a high turnover rate means that the problem is on the company. So, you might want to look at what you can do to lower the turnover rate. Apparently, one effective way is to offer training, benefits, promotions, and salary increases to those deserving.
It benefits both parties
Sending your employees to training as well as showering them with employee benefits is a win-win approach. While they are busy expanding their skillsets, you can expect new and more expertise from them which you can also offer as another service to clients. Help them reach their full potential so they can also help you achieve the success you dream for your company.
It increases the profit margin
Companies investing in employee appreciation activities are said to have a 24% higher profit margin than those who don’t. There is a proven benefit and there will always be a return from investing for employee’s development than ignoring and letting them leave. Losing employees could lead to a decrease in projects as well as clients which can cause more expenses.
Employees are important assets and every employer should know how to best protect them. Companies must offer growth opportunities that will eventually lead the company to a successful path. Remember the tips mention here on why it’s worth it to invest your resources in deserving employees.
Source: Guthrie-Jensen Consultants