Written by: Kyle Gillette, Executive Contributor
Executive Contributors at Brainz Magazine are handpicked and invited to contribute because of their knowledge and valuable insight within their area of expertise.
Businesses are nothing without their employees. A business that’s not investing in the growth and development of its people is putting itself at a disadvantage before it even starts.
The Society for Human Resource Management estimates replacing an employee costs between 6-9 months’ salary, meaning if you have someone working on your team who makes $50,000 per year they would need to be replaced by another person it would cost an additional $25,000 to $37,500 just to recruit and train your new employee!
16% of annual salary for jobs earning under $30,000 a year. For example, the cost to replace an $11/hour retail employee would be $4800.
20% of annual salary for positions earning $30,000 to $50,000 a year. That would cost an employer $10,000 to replace a manager making $50,000/year.
And Up to 213% of annual salary for executive positions.
Employers are beginning to see the many benefits of developing their employees instead of looking for outside talent.
Benefits Of Developing Employees
When an employer puts genuine effort into developing employees, there are immediate and long-term benefits. Benefits to both the employee and the employer.
It Increases Loyalty And Retention
An employee that is being developed is an employee that sees a future with your company. An employee that sees no opportunity for growth won’t stick around. This growth doesn’t have to be upward mobility either. Most employees just want to grow in their skills and talents.
When you have an engaged and growing workforce, they enjoy their work and remain with businesses longer. This helps you to truly establish your culture and gives you the opportunity to observe the talent and possibly promote from within.
Improve this by offering training opportunities such as webinars and conferences. Give them the reigns to determine which are best for them and a budget + time off to make it happen. Provide one-to-one coaching through a check-in meeting (see below).
It Improves Culture And Productivity
Employee development programs are about people. Your culture is your people. When your people enjoy the people they work with they become more productive. A more productive workforce is a better company.
“Customers will never love a company until the employees love it first.” Simon Sinek
Culture is a combination of an organization’s systems, values, compensation, attitudes, and behaviors. When an organization develops its employees, you are improving the culture. Employees that are being developed build better systems, add value to customers and the bottom line have better attitudes, and function more efficiently.
All of which leads to better productivity, higher engagement, and a culture that the employees own. Ultimately, resulting in business growth.
Improve this by teaming with your employees to get their feedback on what works best on a day-to-day basis. Get their input and perspective consistently. Provide a weekly check-in meeting to make this possible.
It Makes Growing Your Business Easier
When your business is maturing but your workforce is not, get ready for disaster to happen. Hiring and developing people from the outside is much more challenging and expensive than promoting from within. Research shows keeping the spark alive for your employees can double your revenue. Employees that are valued by an organization will add value to an organization.
When employees are devalued, the organization will be devalued.
The best way to add value to employees is to help them see how valuable they are. Help them understand and develop their unique talents, skills, and passions. Fortunately, it’s not as difficult as it seems.
Improve this by celebrating your employees. Birthdays. Projects completed. Milestones in their training. Even the little things were accomplished on a random Wednesday. Pay attention to them and celebrate.
Know Thyself To Develop Thyself
Ultimately, development rests on the employee, not the employer. An employer can only offer the tools, training, and schedule flexibility for the employee’s development. The employee must take ownership of their own growth.
Lao Tzu said, “Knowing others is intelligence. Knowing yourself is true wisdom. Mastering others is strength. Mastering yourself is true power.”
When employees know themselves marginally better, they will begin growing. When employees truly know their “wiring”, you have a truly effective and powerful workforce. And when The employees understand themselves more, their understanding of others increases too.
This new understanding of themselves and others is what will create the next-level product, service, or innovation that your business needs. Without healthy workplace relationships and engaged employees, efficiency and productivity will be the first things to go.
Improve this by creating a culture of strengths and limitations assessment. Weekly touchpoints like 10-minute Tuesdays and providing outside intensive training like my SAGE Leadership Program.
To Develop and Retain Your Employees
Offer training opportunities through your business, online, and by coaching them yourself. What are 3 training and coaching opportunities you can provide your employees?
Get feedback from your employees through weekly check-in conversations. When can you meet one-on-one with employees to have check-in conversations?
Take the time to celebrate your employees. How do you celebrate your employees on a weekly or monthly basis?
Create a culture that embraces strengths and limitations. What is your perspective on strengths and limitations in your leadership? How do you see this with your employees?
You can also contact me at Kyle@sagemindset.com
Kyle Gillette, Executive Contributor Brainz Magazine
Kyle Gillette is an expert mindset coach. After working for 9 years in a men's mentoring program and seeing how much the student's mindsets were limiting their success, Kyle created the SAGE Mindset® Framework. He now helps small business owners who are struggling with burnout, feeling overwhelmed with work, or just plain stuck create the habits and mindsets gain the clarity, confidence, and clients they deserve. Kyle is also the creator of the SAGE Mindset App, he's an author, and host of the SAGE Mindset Podcast. He's been coaching and leading people in the non-profit and small business contexts for 20 years. Kyle desires to help his clients become the leaders they were meant to be. Visit sagemindset.com to learn more.
