If you run your own business, you will know that the secret to running a successful company often involves making a series of wise investments. Business owners need to invest not only money but also time and effort into their companies in order to see a return on their investment in the form of business success and growth. You probably spend a lot of your time figuring out the best investments to make in a wide range of different channels including marketing and advertising, social media, cybersecurity, technology, development and research, branding, and more.
Your employees are also making investments of their own. While they might not be funneling their money into your business, they are certainly investing their time and energy into working for your company and helping it achieve the success that you are aiming for. But, are you investing back into your employees? Many companies would not be able to survive without the teams that they hire, but fail to invest in them. But investing in your employees often means a direct investment into the future success of your business. It does not have to be costly, and can often be one of the best ways to improve the value and market position of your brand while keeping staff turnover low, increasing employee loyalty and motivating employees to go that extra mile for a company that really cares about them.
As a result of investing more into your workforce, your company is likely to enjoy employees that are more motivated, productive, and loyal to the business. This can bring about significant benefits that will boost your company overall, such as lower staff turnover leading to lower costs, reduced risk of sickness among teams, better teamwork, a better workplace morale, more creativity at work, and better customer service. In comparison, employees who are not invested in and do not feel that they are valued by the company might leave quicky for a better opportunity, take more time off sick, and be less engaged and motivated while at work.
Thankfully, there are many strategies that you can use for investing in your employees, and they do not always have to be financial. As a result of investment in your team, your business can enjoy a huge return on investment in the form of improved engagement and establishing a better culture of employee development. Here are some of the main reasons why investing in your employees is a great situation for everybody involved.
Save Money Overall
Good employees can be very expensive to replace. Each time an employee leaves your company, you will need to face the costs of advertising for their role, interviewing candidates, hiring, and training a new employee. And while there might be times where a good employee will leave for unavoidable reasons such as relocation or retirement regardless of how much you invest in them, the overall result of investment in your employees tends to be a lower staff turnover. And when fewer of your best employees are leaving your company because they do not feel the need to look for anything better, your business can save a substantial amount of money over time.
Better Employee Communication
Don’t make the mistake of thinking that investing in your employees always means handing them cash bonuses. In fact, sometimes, one of the best ways to invest in your employees is to provide them with better equipment and resources when doing their job. And in order to do this successfully, you will need to regularly communicate with your employees to find out more about what they need and what might make their jobs easier for them to do successfully. Studies have found that a lack of communication between business owners, managers, and employees regarding what is needed to achieve results ends up costing companies millions of dollars per year due to the talents, skills and efforts of employees going misdirected, and employees not having access to the resources that they need to get better results.
Motivate Your Employee
Anybody who has had a job knows that it’s different when you’re working for an employer that you feel has your back, compared to one who doesn’t appear to care at all. When an employee is invested in on a regular basis, they will certainly feel valued, appreciated and noticed at work – which ultimately leads to more motivated employees who are likely to be more willing to go the extra mile for a company that would do the same for them.
Fewer Sick Days
Although time off from work due to sickness is sometimes unavoidable, many employees take sick days because they are mentally drained and unwell from being overworked and going unnoticed in the workplace where they are trying to do their best with a lack of resources. If you want fewer sick days among your workforce, investing in your employees by providing them with more support to do their jobs could be the solution that you are looking for. In addition, some companies have found that investing more time into their employees by providing the option for them to take unlimited mental health days can actually help to reduce the amount of time that employees take off.
A developing business or startup will always achieve better success with the support of a strong team who share your vision for the future. However, no matter how good your team members are at what they do, they are quickly going to lose dedication and passion for your company if they are underinvested in and taken for granted in the workplace. Investing in your employees can lead to better teamwork and help to keep the passion alive for everybody who is involved in taking your business from the group up and into success.
Better Trained Employees
One of the best ways for a business to invest in its employees is through training and development opportunities. This could be anything from providing short courses and on-the-job training to offering a tuition assistance program for employees who want to embark on Suffolk University’s MBA Online Program along with support for them while they study and the opportunity of a promotion at the end. Today’s employees are often looking for careers where they can learn more and develop their abilities, rather than being stuck doing the same thing every day for years on end. Career development opportunities are one of the main things that today’s top candidates are looking for. Offering this as an investment that you make in your employees will not only help you keep the good teams that you already employ, but make it much easier to hire from within and attract better talent when hiring from outside.
Hiring from Within
Following on from the last point, hiring from within can have a wide range of different benefits for your business, but it is only usually possible for companies to do the majority of the time when they have invested in training their employees and providing them with the tools, knowledge and skills that they need to move up into more senior positions. If you have invested your time and energy into building a business from the ground up, the people who have been there and in it with you from the beginning will often be the best choices for future promotional opportunities since they understand the business inside out. An employee who has been with you from the start and is one of the most loyal and motivated members of your team could become a very valuable member of your senior management team in the future if they are provided with the right training. In addition, training and hiring the employees who are already familiar with your company can often be much cheaper compared to bringing in employees who are completely new to your brand and putting them in charge.
Improved Customer Service
One of the main returns on your investment into your employees will be an investment back into the company from them when it comes to time and effort. And one of the departments that will often shine the most when this happens is that of customer service, leading to an improved reputation and better customer relationships for your brand. When employees are valued and invested in at work, they will often become much more positive representatives of your company and are more willing to go the extra mile when needed, which can lead to better engagement with customers.
Better Business Reputation
Companies that invest in their employees tend to quickly get a good reputation among professionals and customers alike. Sadly, there are so many companies today that don’t really care about their employees as long as they get the work done. By going against the grain and being that company that demonstrates just how valuable and appreciated your employees are by investing heavily in them and rewarding them for the work they do in a way that goes further than their basic wage, your business will soon begin to be talked about in a very positive light.
There are various ways to invest in your employees that can lead to less stress in the workplace and an overall more pleasant environment with better workplace morale. For example, investing in your employees by offering them a shorter work day at the end of the week or an additional paid day off every few weeks can make the world of difference. While it might seem counterproductive to ask employees to work less, the truth is that individuals who have been given the time to relax, rest and recuperate will often come back to work much more motivated to be productive, and get a lot more done compared to if they were burned out and tired. This can also lead to better workplace relationships, more creativity, and many other positives for your business.
Attract the Best
No matter what kind of business you run, it’s always good to aim to be the kind of company that people actively want to work for. Investing in your employees means that you are going to increase your chance of standing out in the industry and become the kind of company that the best professionals in the field are going to leave that job that they feel underappreciated and undervalued in to come and work for you instead.
Build Better Relationships
Another great way to invest in your employees is by providing them with more autonomy. Micromanagers might think that breathing down an employee’s neck is the best way to get them to perform, but the truth is that most of the time, good employees are responsible adults who, when given the freedom to do so, will work even better than before. Investing in various ways to allow your employees more autonomy such as flexible working hours or remote working opportunities for all to take advantage of when needed will not only help your company get better results by improving productivity, but can also be a great way to strengthen workplace relationships.
A successful business is often built with a series of wise and strategic investments, but one of the most important investments that you can make as a business owner is in your employees. Whether you are starting a company from the ground up and hiring your own team or want to improve your current company, investing in your employees can be done in various ways and can bring out several huge benefits for your company.
Investing in your employees can cost a little or a lot – in many cases, investing more time into communicating with your employees and providing them with better resources, autonomy, and opportunities in the workplace can be an ideal way to make sure that you are holding onto the best members of your team for longer. Companies that invest heavily in their employees tend to deal with lower staff turnover, more productivity at work, better customer service, improved workplace relationships, and a better reputation in the industry.