Encouraging and supporting employee development is important not only for the employees themselves, but also for the managers and company as a whole. Many successful companies put employee development at the forefront of their business plans, knowing that the benefits of doing so are immense. Employee development is not simply about increasing productivity (though studies indicate that it does so), but also about keeping employees fulfilled and happy.
Employee development can be supported in a variety of ways. One of these is to provide regular reviews that check whether employees are being challenged, if they have enough work to do, where they wish to go in the future, and what skills and areas of expertise they are interested in developing. From here, individual development plans can be made, which outline the steps both employee and manager will take to get the employee to where they want to be. Other ways to support employee development include providing professional training (such as e-learning courses or workshops), cross-departmental training, setting up an office-mentoring program, tuition reimbursement, and encouraging and facilitate networking opportunities.
There are many benefits to supporting employee development, including increased productivity, knowledge transfer, and company profitability. Supporting employee development also saves money through employee retention, as a high turnover leads to higher recruiting and training costs. A survey done by go2HR found that forty percent of employees who felt they had not received adequate job training or development options left the position within twelve months, demonstrating the impact that poor or non-existent employee development programs can have on a company.
Supporting employee development also leads to increased employee happiness, which reaps its own benefits. A Kansas State University study done by Thomas Wright found that employees with high psychological wellbeing and job satisfaction perform better and are more likely to stay with the company. Happy employees are also good for company profitability – Wright’s study estimated that per unhappy employee there is a $75 loss each week for the company. Monetary benefits aside, however, I think we can all agree that employee happiness is important in its own right, as they are the individuals who form the backbone of any company.
One example of a company excelling in their support of employee development is the Nugget Market, a grocery chain that was highest ranked retail chain on Fortune’s 100 Best Companies to Work For in 2016. A Great Rated! Survey found that 95% of employees were satisfied with their opportunities to develop, with the company offering training programs, coaching, an annual training camp and annual reviews. Due to this, 92% of employees rate their workplace as ‘great’ and they have a low turnover rate of 13%.
Employee development is important for company productivity and profitability, as well as employee happiness. There are numerous ways to support employee development, including internal and external training, mentoring, and the creation of individual development plans. As the example of Nugget Market shows, employee development leads to employee happiness and wellbeing, which in turn leads to company success.
Kaylia Payne
Sources:
https://www.sciencedaily.com/releases/2009/02/090203142512.htm
https://www.go2hr.ca/articles/employee-training-worth-investment
https://fosteredu.pennfoster.edu/3-companies-offering-great-employee-development-programs
http://reviews.greatplacetowork.com/nugget-market-inc