Why organizations should invest in human capacity development

Employee training and development programs are essential to the success of businesses worldwide. Not only do these programs offer opportunities for staff to improve their skills, but also for employers to enhance employee productivity and improve company culture. Employee training and development programs are critical for enhancing employee performance. Training also can boost employee turnover,

Companies can offer many kinds of in-person or online training and development opportunities for employees. And they can use in-house training, third-party training, or off-site activities to provide those opportunities. 
Addressing weaknesses
Improved performance of employees
Boosts company profile and reputation
Innovation…. etc

Here are some of the benefits your organization gets for investing in human capital development:

1. Increase Employee Satisfaction
Investing in professional development for your staff can lead to greater job satisfaction. According to a 2014 survey by the Society for Human Resource Management, 42 percent of employees said their organization’s commitment to professional development is “very important to their job satisfaction.”

Internal professional education for your staff shows them that your business cares about their careers. When your employees feel that their workplace cares about their development, they are more likely to be satisfied with their jobs.

2. Improve Retention Rates
Almost 54 percent of workers said that career advancement opportunities are more important than salary when looking for work. Additionally, 44 percent of employees cite a lack of opportunity for growth and advancement as a top source of work stress. These statistics show the importance of career growth to employees.

Workers who are receiving professional education and development are less likely to seek other employment opportunities. So, if an employee can advance within the company, he or she won’t have to look for advancement opportunities outside of the company.
Opportunities to develop are especially important to millennials. A 2016 Deloitte survey found that 70 percent of millennials cite a lack of leadership development as the main reason for wanting to leave their current position.

It’s estimated that it costs an average of six to nine months salary, to replace a salaried employee. A little investment in an employee development plan can save a lot in employee turnover.

3. Develop Employee Engagement
Increasing employee engagement is a priority for every business. Engaged employees are more productive for, and more loyal to, the company. According to a survey by Gallup, only 32 percent of workers feel engaged at work.

Investing in employee development can help to grow your employee engagement. Giving your staff career advancement opportunities, and investing in their development, gives them a reason to be engaged at work.

Ideally, each business should ask its workers what areas they want to develop, and then offer opportunities in those areas. Personalize your development opportunities to engage your employees the best.

4. Develop Client Engagement
As previously discussed, employees who are given growth opportunities are more likely to be satisfied with their job and engaged in the company. Employees are the face of every organization.
When customers interact with staff that is engaged and satisfied, they are more likely to have a positive experience. Every positive experience, in turn, increases customer engagement and satisfaction. The more satisfied your employees are, the more likely your clients are to be satisfied in return.

5. Improve ROI
Every company invests in human capital, whether it understands it or not. Your staffs’ salary, benefits, and perks are all an investment in your firm’s human capital.

Spending this money, but not paying a little more for employee development is like paying a significant amount of money for a Super Bowl commercial spot, but then refusing to spend money to make a quality commercial. That would be an awful investment for your company.

Don’t throw this money out of the window. Your business has to spend money on developing its workers to maximize the return on your human capital investment. Improve your employees by offering opportunities for growth and learning; it will ultimately improve your bottom line.