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Why Is It So Important to Invest in Your Employees?

If you run your own business, then you probably do not need to be told that making the right investment is key to your success. Companies need to invest time, resources, and money into a range of different channels such as research and development, technology, security, social media, digital marketing, advertising, and more. Alongside you, your employees are also investing their time, talents, and energy into achieving the vision for your company. Without your employees, your company would probably not be where it is today, which is why making investments in employees is one of the best things that any startup owner can do.


Investing in employee development has various benefits for employers and will be beneficial for the future of your business. It can be one of the best ways to improve the value of your company and secure your position in the market, and it does not always have to cost your company a huge amount of money.

There are several investment strategies that you can use when investing in your workforce. As a result, the right investments can help you build more knowledgeable teams, loyal and engaged employees, and boost employee productivity in the workplace. Making the right investments in your employees will also help to establish and promote a culture of employee development that can also help you when hiring, as more talented and dedicated people are interested in working for your organization.

It Isn’t Cheap to Replace Good Employees

The cost of replacing a good employee could come to more than double the amount you currently pay them annually. Because of this, investing in your employees is a smart financial move since it pays off handsomely. For example, employees who have access to employer-funding development and training such as online MBA courses from Saint Bonaventure University to help their career are less likely to leave and more likely to be engaged with the work that they do, resulting in higher productivity levels that ultimately improve your bottom line. Investing in your employees and supporting their development allows you to build better relationships with your employees along with helping your company avoid the unnecessary expenses that come with recruiting and training new hires after dissatisfied employees leave.

Attract Better Talent To Your Company

Investing in opportunities for growth for your employees through a corporate alumni platform will ensure that your team feels appreciated and valued at work. And when people feel this way about their employer, they are often more likely to share it with others in their professional network and include it in any employee reviews that they pen about working for you. When employees are invested in at work, they may share your company as a great place to work with anybody that they know who is looking for new employment. Once your business gains a reputation for investing in employees and supporting their development, you will find it easier to attract top talent, as this is one of the main benefits that some of the best-qualified people are looking for in a new career option.

Improve Employee Dedication and Motivation

According to a study by IBM, employees who do not feel that their current employer is doing anything to help them develop and grow in their career are twelve times more likely to start looking for employment elsewhere. Many employees who aspire for better things in their career will naturally start looking elsewhere if they do not feel that they are going to be able to meet their goals while working for your company. On the other hand, investing in employee training and development can help you build a team of employees who are dedicated to helping your company succeed and motivated to do their best. Employees who are motivated to succeed will be the best thing for your company if you support their development and progress; in return, they will support the development and success of your brand.

Fewer Sick Days

While there are always going to be times when sick days are not avoidable, it can be frustrating for any company to lose a member of staff for even just a couple of days. Studies find that companies who invest in their employees tend to have fewer members of staff calling in sick, particularly when they make investments that focus on health and wellbeing. Companies that are dedicated to investing in the health and wellness of their employees tend to experience lower absenteeism rates and employees who are overall more productive.

Investing in the health and wellbeing of your employees can come in many different forms. Mental health days and flexible working are a popular option that more and more employees want these days. Employees who are able to take time off or work from home when this is beneficial to their health are more likely to be loyal to their employer, according to recent studies.

Improve Company Reputation

A good work-life balance is one of the main things that employees are looking for in an employer today. One of the best ways to invest in your employees is to make sure that their personal life is also a priority. Pushing your employees to work crazy hours and giving little thought to their work-life balance might have a temporary short-term effect, but in the long-term, this is only going to lead to employees who are burned out, exhausted, and actively looking for work elsewhere. Along with this, once your business gets a reputation for being the kind of company where employees feel like they barely have a life outside of the workplace, it’s going to be harder to recruit top talent, with a good work-life balance being one of the biggest requirements today.

Instead, investing in new strategies like four-day working weeks and hybrid working to make sure that your employees can enjoy a good work-life balance will have several benefits. Not only do well-rested employees come to work feeling motivated and energetic, but your company will also enjoy a better reputation in the industry and become a top choice for talented individuals who are looking for new employment opportunities.

Boost Teamwork

Investing in your employees can be one of the best ways to improve the morale and teamwork in the office, which in turn can improve productivity and lead to a better overall workplace atmosphere. When your company invests time and money into encouraging employees to work together better with team-building activities and social events, you can build a better team culture and collaborative environment during working hours. Employees that have opportunities to get to know each other outside of the work environment with events that are paid for by their employer tend to work better together.

A simple way to do this is to invest in team-building exercises that are fun and not related to work in any way, which can help your employees figure out how to work better with one another without the pressures of work. In addition, investing in employee development in general can help to boost teamwork. Employees who feel that they are valued, appreciated and supported in their personal goals in the workplace tend to be better team players and contribute to a better atmosphere and morale in the office. In turn, this can produce better results, improved communication, higher levels of productivity, and more creative ideas.

Build Better Employee Relationships

Investing in your employees often sends them the message that you trust them as professionals and are willing to do what it takes to help them meet their personal goals for their careers. It is a far cry from companies that micromanage their employees and are only interested in what they are doing if it directly benefits the company, whether or not it benefits the employee. Investing in development opportunities and the health and wellness of your employees helps you build better relationships with your employees by creating a culture of support and investment that goes both ways. As you invest in the development and goals of your employees, they are also investing their time and energy into helping your company succeed with new ideas, strategies, boosting your reputation, finding new clients, and more.

Improve Customer Service

When a company invests in its employees, this often has a positive domino effect that reaches the customers. Customers tend to be more satisfied and more loyal to companies that treat their employees well and invest in their success. Not only is this a direct result of interacting with employees that are clearly satisfied in their role and dedicated to helping the company succeed, but customers today are more and more concerned with how companies treat their employees, with many preferring to give their custom to businesses that invest in employee satisfaction.

It is important to bear in mind that many of your customers are probably employees or former employees or various companies themselves, and their empathy for other people may play a role in the businesses that they choose to spend their money with. The younger generation in particular is increasingly interested in supporting companies that invest in employee development and genuinely care about their employees’ health and wellbeing.
Reduce Recruitment Costs

Investing in your employees’ development can pay off handsomely when it comes to improving recruitment and reducing your overall recruitment spend at the same time. Companies that actively invest in helping their employees gain further education or complete training programs that help them develop new workplace skills have more inside options to choose from when it comes to filling new positions in management, which can save a huge amount of money. In addition to the reduced cost of hiring from within compared to posting a job and hiring from outside of the company, employees that have worked for the company for some time and have trained under your company are often more ready to hit the ground running and require little to no training to get started in their new more senior role, which in turn can save the company a significant amount of money in onboarding costs.

Employees Share Your Vision

Many business owners are passionate about their company and have a strong vision for it, only to be disappointed when they realize that employees do not feel so strongly about it. For business owners, it’s important to bear in mind that the company is not going to be quite as important to your employees as it is to you but investing in your employees can help you change this. Making strategic employee investments in development, training, health, and work-life balance can significantly change the way that your employees view the business and help them get on board with sharing your vision and working towards success. Employees who feel that they are appreciated, valued, invested in, and supported in the workplace are much more likely to become personally invested in the success of a company compared to employees who feel that it is simply a place to go to work and the only thing that is in it for them is the job.

What Can You Do to Invest in Employees?

With so many benefits of investing in your employees, it’s no surprise that you may be wondering how you can get started. The good news is that investing in your employees can start small. Investing in health and wellness is an ideal place to get started. Making changes to work schedules to encourage more flexibility or allowing employees to have longer weekends can make a huge difference. Ensuring that the onboarding process is as easy and headache-free can alleviate some of the stress that new hires feel when transitioning. Speak from your own experience, walk them through the paperwork,  and show them how to use a withholding calculator and/or any other helpful tools you've encountered throughout your HR career. In terms of training and development, companies can get tax benefits for offering tuition support or forgiveness programs to employees, and thanks to online degree programs, you do not have to lose your employee for years as they study since you can help them find a flexible online program that they will be able to fit around their work.

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