We have to tackle employee development and give it the attention it deserves. Many employers are silent on it, but it’s a pertinent topic that has long been ignored. Employee development is so crucial that it could take a company to unprecedented heights by virtue of developing its human capital.
Fuzu CEO Jussi Hinkkanen once told me that companies ignore their greatest asset too often. He said that a company’s greatest asset is its human capital. When employees believe in a product and in a company, they’ll give it their best shot and ensure your company grows. On the flip side, if they’re not empowered and supported to do their work, they’ll only do the bare minimum.
On a practical level, employee development has been tested and proven to yield exponentially high results. Take the example of Dan Price the Founder and CEO of US-based credit card processing company Gravity Payments.
He used to earn $1,000,000 a year but one day realized that his employees were struggling to make it to work due to low pay. Price decided to slash his salary to $70,000 a year and set the minimum wage in his company to $70,000. He had to trim his lifestyle to fit his new income level but the results were unmatched.
Dan told CBS News that the size of his company tripled in revenue and workforce. Most importantly, when COVID hit, his loyal employees voluntarily took a pay cut and it kept his business afloat. These employees would work extra shifts pro bono to ensure that they assist their clients and give them the best service.
Where does the problem with employee development begin?
Dan Price said that many CEOs are not willing to downsize their hefty pay packages so that they can pay their employees better. Others are very weary and somewhat reluctant to spend money to train, motivate and develop their workers.
It’s all about maximizing profits at the least cost. The only problem is that these margins, though huge, end up working against the company and its progress instead of for it. Why? Employees are not robots who help you get things done. They are human beings with brains, hearts, lives, and families. Ignoring that simple fact could be the greatest undoing of any leader.
That’s why companies should unselfishly invest in employee development.
What is employee development?
Employee development is the process of improving employees’ existing competencies and skills and developing newer ones to support the organization’s goals according to Valamis. It’s a collaboration between an employer and their employee to develop and polish the knowledge and skills in their specific field.
How to conduct effective professional development for employees
Provide constant training - From the time an employee first joins your company, you should ensure they are receiving the necessary training to sharpen their skills. It will also teach them about the product and help them explain it better to clients for smooth transactions.
Managers should coach their juniors - They should guide them and mentor them to ensure that these employees keep improving. It will also help them know when the employee is experiencing a challenge outside work such as emotional turmoil and support them through it.
Track their progress frequently - You should measure whether your investment in the employee is bearing fruit.
Motivate your employees - Give them incentives and rewards such as bonuses and promotions when they surpass expectations or achieve a higher certification.
Pay them well - Take the risk and pay them better than average. It will attract the elite professionals in that field who are fiercely loyal. Your employee retention will improve significantly.
Benefits of employee development
It reflects onto your customers - A motivated and empowered employee will do their best to ensure that they give the client the best experience ever.
Constant growth - Your company will be on a consistent trajectory of growth because you’ve empowered your employees to innovate and be more creative. And as the workers grow, the company will also grow consequentially.
The employees will go beyond the call of duty - They will not just do the bare minimum to fulfil their quotas because they’re motivated to work.
You will attract the best -. Who wouldn’t want to work for a company that invests in its employees and positively impacts their careers? The best talent in the field will yearn and dream of working for you.
Ensures continuity - As your workers keep improving and getting polished, they grow to become leaders that you can trust. In your absence, everything will run smoothly. That assures you that your company will thrive for many years to come.
Conclusion
I remember reading a meme on Twitter once. The company CEO and Head of People (HoP) were having a conversation about employee training that they were conducting. They had pumped a significant portion of the company’s resources into investing in their workers. But the HoP was a little worried that they were doing too much. Here is how the CEO responded.
HoP: I’m worried that we’re investing too much in training these employees
CEO: Why?
HoP: What if we train them and they become better and they leave to work for other companies?
CEO: (Chuckles) What if we don’t train them and they remain?
HoP: I see your point. We’d rather have trained people because the company will grow than have average employees who will only cause us to mark time at one point.