Why You Need to be Investing in Your Employees

by Phil Geldart

Invest In EmployeesYour staff are a very significant expense. For most organizations, payroll costs are the largest single expense. Additionally, staff costs go well beyond payroll: they include benefits, operating expenses, meeting time and leadership time.

Beyond this, often within an organization there can be two people working side by side, doing the same job, being paid about the same, yet one is demonstrably more productive than the other. Equal cost, unequal value received.

People are one of the very few company assets that can dramatically appreciate in value with relatively little investment. This growth in value can translate to improved productivity and efficiency, service excellence, innovative process improvement, and improved corporate performance, because each of these things depends on people.

How then to get the two side by side workers performing at comparable levels? Invest in their personal growth and development.

How to get greater innovation, efficiencies, and improved service? Teach people how to deliver those outcomes.

People are capable, talented, and able to grow; and usually they want to grow and develop. As leaders, facilitating that growth, in a highly effective manner, yields disproportionately greater gains for the organization.

I once led a large initiative to improve corporate performance. Initially it was very successful, but then plateaued. As I sought to understand why, I realized that I had initially tapped into the unharnessed talent and capability of the workforce. Once that was realized the growth slowed. Realizing that, I then ramped up the investment being made in individual capability and competence. As people learned new skills, then the performance impact curve again showed strong growth.

Stronger people…stronger results.

The investment made in people, if pragmatic and relevant, is an investment in one of our greatest and potentially most impactful assets…and very well worth it!