Why employee development is key to a company's success
by Redware Team on Mar 22, 2022 10:37:09 AM
Employee development tends to focus more on continued learning, rather than just learning one new skill. Employee development can be achieved in many ways – including, through hybrid learning, mentorship opportunities, on-site professional training or through a learning management system (LMS), to name a few examples.
With technological innovations growing at break-neck speed, organisations should encourage their members of staff to keep up with the pace, and enhance their knowledge and practical skills. Job roles involving compliance, or medical professionals, for instance, are good examples of roles that have a requirement for employee development as regulations and laws change often. You may also want to use employee development to keep colleagues up-to-date with company best practices.
The benefits and importance of employee development
1. Improved company culture and loyalty
Businesses that cultivate a learning and development culture demonstrate their value for their employees. Employees that are given the opportunity to develop their career and expand their knowledge feel appreciated and are more likely to go the extra mile for their employer in return.
With this in mind, businesses that have employees who are consistently engaged and constructive, promote a sense of fulfilment and vibrancy as they start to see their full potential. This is especially important for HR when hiring new talent, particularly if part of your business plan involves expansion. If you are providing the right opportunities for L&D, there is a high chance that employees will commit to you long-term, and as far as first impressions go, this looks great for potential candidates who are deciding whether or not they want to work for you!
2. Higher retention for members of staff
Hiring someone to take the place of a previous staff member can be an expensive process. To put this in perspective, AT&T found that amongst their 250,000 employees, that the median cost of replacing a worker who didn’t have up-to-date skills was around 21% of that employee's entire salary. In response to this, the company spent $1-billion on an in-house employee development program.
There is a short-term expense, but with a solid investment in a learning and development strategy it can result in a higher employee retention and save you money in the long-term. This is a win-win situation for your business, as you can avoid the HR headache of re-employing and you can see the productivity benefits from an employee that is engaged and motivated, as they are on a clear pathway to learn new skills and adapt them in the workplace. This can be demonstrated when Volvo implemented empowered LMS as a part of their learning strategy, as a direct result of empowered Volvo managed to drive down staff turnover by 18%.
Let’s breakdown the benefits of high employee retention:
- We avoid the expense of hiring replacements.
- A higher retention can mean higher morale for the surrounding team.
- For new employees or potential candidates it can be a good sign to see colleagues who have longer stays with the business.
- It gives HR the opportunity to build on their learning and development strategy, and company culture, rather than build from scratch with a new member of staff.
3. Higher productivity and motivation
Now more than ever, employees want to feel valued. As recently shown in our Gen-Z report, over 50% of Gen-Z’s surveyed are leaving their current roles due to training and development prospects. As said before, if you’re not letting go of staff due to not having the right skills, then the likelihood is the employee might be looking for opportunities elsewhere where they can be trained.
It should be a no-brainer that employees who are well trained and know how to perform their job well, will often be more efficient and perform to a high standard. Most employees will want to do well in their roles, and large chunk of performance issues often stem from employees who may not fully understand their role or duties.
Simply put, businesses that nurture their employees with a robust L&D system will find that their employee’s remain actively engaged, and are willing to do more than the bare minimum in their role. Whilst employee engagement is a multi-faceted technique, employee development plans are a great first step in creating a more engaged workforce overall.
4. More profitability
Now that you are managing to retain more employees and those employees are performing at a higher level, you may start to notice how it affects your bottom-line!
To add to this, having your own in-house employee development plan can save you a lot of money, rather than investing your L&D budget with a third party, where you can’t necessarily control the curriculum. With a more passionate and talented workforce, you stand a better chance of staying ahead of the competition. Whilst ultimately, the quality of the product or service will affect overall sales, you need a dedicated and knowledgeable team that can drive these sales and allow your business to remain profitable well into the future.
5. Inspires innovation
Investing in your employees learning and development is not necessarily just about keeping them happy in their role – the long-term goal should also be about creating leaders in your business that take on bigger challenges that can help drive your business forward.
A solid employee development plan (with a great LMS) should not just stop at the point where the employee knows how to perform in their job role. To really take it to the next level, it should also provide the employee an opportunity to start thinking more creatively in their role when it comes to tackling new challenges. Of course, this can be a bit of a fine balance, as it can be easy for an employee’s learning and development to become too structured and rigid. As noted above however, giving your workforce the ability to think outside the box can be crucial for business’ success whether that involves a new product/service or improving existing ones.
How empowered LMS can improve employee learning
Having employees that are competent is of course vital to the success of any business, but, as we have covered, simply having members of staff that just know how to perform at a standard rate may not be enough to elevate your business to the next level. This is especially true for larger businesses with more members of staff, where logistically, keeping them up-to-date and engaged may be more challenging.
If you are looking for the next-generation of LMS, then empowered LMS might just be what you are looking for. Our bespoke and multi-faceted LMS system can be tailored to your specific requirements with dedicated development and management.
At Redware, we understand that every business and their L&D requirements are different. Take our client, Volvo, as an example. As a global automotive manufacturer with dealerships worldwide and multiple new product lines in development. For any business at this scale, it can become easy to become fragmented in their approach to learning and development. With the rapid pace of change in technology and products, the requirement to enhance overall dealership capability grew so large that their current ‘off the shelf’ LMS system could not keep up.
Implementing empowered LMS had allowed Volvo in multiple countries and dealer groups to easily distribute their own training, locally and securely, with the flexibility to update training as and when required. The flexibility and ease-of-use with empowered LMS had given Volvo the opportunity to provide employees with the necessary training and enhanced learning engagement by 64%.
Unlike other methods of employee development, such as on-site training, empowered LMS offers the flexibility for the employee to take training from any location.
For over 20 years our learning and development experts at Redware have been assisting businesses worldwide, helping organisations implement comprehensive and robust employee development strategies with our bespoke empowered LMS.
To find out how empowered LMS can enhance employee development in your organisation, please contact us today.