Last week, HR Fizz introduced our upcoming blog series on the importance of organizational investment in employee learning and education. The mounting trove of research and data trends supporting the link between investment in employee learning and development and optimal business outcomes culminated last week with an announcement from a group of the most prominent CEO’S in the United States known as the Business Roundtable. The group’s announcement signaled a seismic shift from longstanding organizational thinking that the shareholder is the top business priority, to a view that businesses must value all stakeholders, including employees, equally in order to compete in a global marketplace. Because this shift in organizational thinking is so impactful, we wanted to dive into a few things you should know.
This blog series will help you understand why investing in your employees is important, and how it benefits the organization in each stage of the employee lifecycle. That being said, let’s start at the beginning. Recruiting top talent is becoming more difficult. We currently have an extremely low unemployment rate. According to the Federal Reserve, the “natural” rate of unemployment in a healthy economy is about 4.5%-5%. As of August, 2019, we are hovering at a rate of 3.7%. When the percentage dips below the “natural” rate, it becomes difficult to find enough qualified employees to fill positions, and according to experts, can lead to a slowing economy. What this means for you as an organizational leader, is that you’ve got to be in touch with what matters most to employees in order to recruit them.
Professional development and sense of purpose are two things that have topped the job seeker wish-list for the past several years, and the trend is climbing. According to the Economic Times, training and development is often one of the lowest priorities in an organization, yet it’s one of the most valuable. Providing an avenue for employees to acquire new skills and grow, not only increases their satisfaction, but it also contributes positively to the bottom line. Many estimates show the average cost to hire a new employee to be about $4,000, with the average time to fill a position at around 50 days. A culture of investing in learning and development will not only help you attract top talent, it will also help you retain them. Keeping them, reduces your cost.
Sense of purpose is another really important consideration for selective employees looking for a preferred employer. Top performers and employees at the younger end of the spectrum want to feel connected to their work. They want to understand how what they do on a daily basis impacts the organization. They need to feel that they are contributing in a meaningful way and know their individual contributions actually matter. This sense of purpose provides pride in work, and pride in work leads to high performance.
Today’s organizational leaders have to understand what is important to employees. Data, research, and trends continue to shine a light on the importance of creating a culture of employee learning and development. The reason it’s a no-brainer is simple. It attracts of top talent, boosts employee engagement and satisfaction, and leads to employee retention. All of these things contribute to a positive bottom line.
Building such a culture is not easy, but also not impossible. Finding a good partner is key. We specialize in helping companies of all sizes build a culture of employee learning and development with our customized learning and education trainings. If you have questions or want to learn how you can build a culture of employee learning and development that will help you compete in a global marketplace, 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!