Connect with us

Teamwork

A Complete Guide to Investing in Employees

Published

on

As a business leader, investing in your employees is the most strategic thing you can do. Your team members drive your company’s success and breathe life into your business goals. There’s a powerful multiplier effect that investing in your employees unlocks, too. We’re talking about better productivity, improved morale, lower turnover rates, and uncovering hidden potential within your workforce.

In our Team Building Saves the World podcast episode, Teaching Power Skills in the Workplace, we talked to Laura Sukorokoff, Chief Engagement Officer of Take Charge Learning.

During our conversation, Sukorokoff summed up the benefits of investing in your employees pretty well:

“When you invest in training, you’re looking at it on a bit of a larger scale potentially, but this is also something where people can be taken out of their day-to-day and really focus on their own development. And that tends to pay off big time.”

In this article, we’ll dive deeper into the benefits of investing in employees. We’ll also look at how to get the most out of the money you invest in your employees and what employees can do to invest in themselves.

Why Is Investing in Employees Important?

The why behind investing in your employees goes beyond professional development and employee wellbeing. Investing in people within your company can dramatically improve your bottom line and transform your organization.

One of the most significant benefits is increased workplace productivity, which manifests in multiple ways. Direct investments in training or workshops give your employees practical skills they can immediately apply. This hands-on approach helps them become more efficient and view challenges with a new perspective so they can find innovative solutions.

As Laura Sukorokoff noted in our podcast, making “investments in your managers and in your team members pays off in engagement, in productivity, in loyalty, and in retention.”

More Benefits of Investing in Your Employees

When you invest in employees, you’re getting more than skill development. A company that’s willing to invest in people makes their employees feel valued; it shows them that they’re important, and this does so much more than boosting morale.

See also  How to Engage Actively Disengaged Employees

Investing in people can fundamentally shift an employee’s whole mindset, showing them how integral their skills are to the business. This means more motivation, creative problem-solving, and productivity, and you can’t argue with that.
Plus, investing in employees also reduces turnover rates. You’re not just providing them with training, education, and skills—you’re saying, “Hey, this is a long-term partnership! We have to help each other grow and succeed. It’s all about teamwork, and I’m here for it!” It’s statements like these that make them want to stick around.

How To Invest in Your Employees

Understanding the power of investing in employees is just the first step. The real challenge is knowing how to invest in your employees and finding strategies that align with both your employees’ goals and those of your business.
There’s no one-size-fits-all approach, so take a moment to assess your workforce before diving into the strategies. Here are some questions to get you started:

  • What do your employees value most?
  • What are they looking for in terms of professional development?
  • What skills or knowledge would help them in their current roles?
  • How can you align their personal goals with your business objectives?

By considering questions like these, you can figure out the best way to invest in your employees so everyone comes out on top. Now, let’s explore some proven approaches to help you build a stronger, more engaged workforce.

1. Provide Growth Opportunities

Professional development is incredibly important and it’s the heart of making an investment in employees. Providing strategic growth opportunities—from specialized training programs to mentorship opportunities—creates pathways for your employees to get the skills and knowledge they need to advance their careers.

These investments produce tangible results in several ways:

Immediate skill improvement: Your employees will be better equipped for their current roles, gaining practical skills they can apply directly to their work. This means more experienced, knowledgeable team members.

Improved performance: Employees who learn new approaches and gain fresh perspectives can solve problems and overcome challenges more efficiently.

Boosted confidence and motivation: Investing in employees shows them that you value them and see their future potential. That can be a huge confidence booster for employees, which often turns into increased productivity and motivation.

Long-term loyalty: Giving employees a clear path for growth in your company makes them more likely to stay and do their best. This lowers turnover rates and builds stronger teams.

2. Encourage Work-Life Balance

Another way to invest in your employees is by encouraging a better work-life balance. While much has been written about the importance of this balance in recent years, it’s worth understanding how this translates into tangible benefits for your business. 

A better work-life balance can benefit your bottom line in multiple ways: 

  • Better employee wellbeing: Employees with a healthy work-life balance experience better mental health. And when that happens, they take fewer sick days and show up more engaged and motivated. 
  • Increased psychological safety: A balanced approach also creates a psychologically safe workplace where employees feel comfortable contributing ideas and voicing concerns. This leads to better communication across all levels of the business.
  • Improved productivity: Even if your employees end up spending less time at work, they’ll perform better because they’re happier and more focused. This, in turn, leads to better morale, productivity, and even sales in some cases. 

How do you provide a better work-life balance as an employer? Here are some practical options: 

Personal Growth

Trending