It’s official; Investing in your employees is necessity for business success. I say it’s “official” not because there has been a steady flow of information linking a culture of learning and development to positive employee outcomes, but because of the announcement made by the Business Roundtable this week.
Let me explain; Research and data trends over the past few years suggest that companies who are committed to investing in their employees, specifically by providing ongoing learning and development opportunities, are seeing positive business outcomes. The research many times points to two things. First is in regards to recruiting top talent. The best employees, and those who are on the lower age spectrum of the workforce, are seeking out companies showcasing such investments. A culture of learning and development is one of the most important aspects to the current workforce. Second, is in regards to employee retention and satisfaction. Once you snag those high performers, you want to hold on to them. Consistent investment in employees through learning and development opportunities, is a positive indicator of employee satisfaction and engagement, which leads to retention.
Putting those aspects aside, investment in employees became “officially” important this week when the Business Roundtable made a significant announcement this week. Who and what is the Business Roundtable you ask? Simply put, they are a group of the most influential CEO’s in the United States. CEO’s from companies you might have heard of like, Amazon, J.P. Morgan Chase, and Apple are members. Essentially, they are one of the most powerful business lobbying groups in the U.S., and their actions have re-actions. Before this week, the Business Roundtable never wavered in its assertion that the number one obligation of a business, is to its shareholders. This belief is how companies across the U.S. have lived and died for decades. That being said, I realized many of you don’t lead in organizations with shareholders. However that doesn’t really matter, because the same business principles apply. The responsibility has been to the business, quarterly earnings, and profits, not the people doing the work. It’s a philosophy that has gone largely unchallenged for many years, until now.
This week, at 5 a.m. Monday morning, the Business Roundtable put out an official announcement signaling the need for an unprecedented shift in business practice. In short, the announcement not only stated that companies should start focusing on “all stakeholders”, but they have a responsibility to do so. Moving forward, shareholders should be only one piece of the pie. All stakeholders should be considered equally in business decisions. As you know, there are many stakeholders in the life-cycle of a business, employees being a large slice of the stakeholder pie. It may not feel like it to you, but this announcement from this highly influential group, has triggered an “official” shift. They have, in essence, legitimized the research and data showing a correlation between investment in employees and business success. They have recognized that competing in a global market requires a commitment to things other than next quarter’s earnings. They have highlighted the link between next quarter’s earnings and investment in employee learning and development.
Because of the magnitude of this shift, our next three blogs will be part of our first blog series focusing on investment in employee learning and development. Each week for the next three weeks, we will focus on a different aspect of how you can build a culture of employee learning and development, and what you can expect for the return on your investment.
For questions on how to start building a culture of employee learning and development with our customized learning and education trainings, reach out to us via our Techpeopleresources.com contact page, by phone, or through any of our social media platforms which can be found on our website.
Your employees will thank you!