Human Capital Development and Investment

More than 60 percent of workers expect career development from their employers. So states an article by Tony Jeanetta of the Olson Group. The short version is that companies derive benefits when its employees feel valued, see clear paths of career development, and simply stated, feel good about their employment. He also states, somewhat surprisingly, that more than 40% of companies have no formal internal structure devoted to human capital development.

To remedy this rarity of formal development, Jeanetta points to the following advantages of companies paying more attention to human capital development and investment:

• Increase Employee Satisfaction – No, this isn’t an altruistic goal. Rather it’s a simple recognition of the fact that satisfied employees produce more when companies pay attention to them and their needs.

• Improve Retention Rates – Guess what. The majority of workers do not think that salary is the most important aspect of their being happily employed. Once again, the most important thing is career development and its ancillaries, like training or on-the-job development.

• Develop Employee Engagement – Studies show that productivity and loyalty increase in direct correlation to the degree in which employees are engaged with their work. Quite simply, are your employees invested, not monetarily but emotionally and professionally?

• Develop Client Engagement – Have you ever met someone new but automatically know he or she is a happy friendly person? It shows on their face. The same holds true for employees in the professional world. Who would you rather have making direct contact with and soliciting your clients – the “woe is me” character or one of those persons described above? An employee who is impressed by your product or service and communicates that to your clients, especially prospective clients is the person you can develop.

• Improve ROI – Companies always ask how much human capital development costs.  But again, guess what. Your company has already spent the money in salaries, benefits, etc. Failing to develop those employees you’ve already paid for, and continue to pay for, is literally a waste of money.

• Improve Organizational Communication – This is the case for everyone being on the same page. When everyone trains together, two things happen: camaraderie and cooperation emerge and second, employees begin to speak the same language, which is not a given commodity.

• Better Recruitment – This one is easy and self-explanatory. Developed employees = happy employees = productivity = successful company = recruitment of the best employees. It’s a cycle, but in this case, not a vicious one. Rather it is a successful one.

• Greater Company Culture – This is the sum of all the parts above. It is the goal of everyone associated with the company, from entry level worker to top management.