We make investments in order to accumulate a return and to increase the value of the initial dollars we invest. The same concept can be used in terms of your employees, and their potential to increase the value of your business – given a commitment to investment.
Most business models place employee costs in the loss column, thinking them in terms of cash out for salaries, insurance and taxes. In reality, employees should be considered a major asset to the savvy business owner.
Developing employees is an investment in your business’ future. What you get out of this investment is far more than what you will ever put into it in terms of dollars or time. An effective employee training program will net you:
- Increase in productivity/innovation
- Foundation of expectations
- Maintaining high standards of product/service quality
- Employee retention
Dollars investment for training equates to dollars return on investment from customer satisfaction. Development of a proper training program resulting in happier, knowledgeable employees will make the customer experience better and ensure repeat business from existing customers and word of mouth benefits, bringing in new customers.
Investing in your employees motivates them to succeed, develops loyalty and makes for happy workers who know that they are appreciated and valued. This, in turn, increases the value of your of your business from the increased customer satisfaction. Ultimately it will reduce the cost of introductory/basic training by reducing employee churn rates.
A shift in management styles is also necessary in retention of employees. Inadequate employee training programs are a good way to lose valuable employee assets, as are less formal relations between manager and staff. The best practice in this area is to implement a style that fits the culture of the company with employees being developed into valuable assets of the business and made to feel part of the business model and its success.