The Importance of Employee Development Programs for Business Success
The economy is steadily rising. Unemployment rates are lower than they have been in years. Although this is great for the economy, it can be difficult for business owners. When unemployment rates are low, small businesses have a harder time filling executive level positions. Highly qualified candidates have numerous employment opportunities and will often go with the best paying position. Smaller to medium sizes businesses are not always able to compete financially. However, you might be surprised that you already have some of the most potential filled candidates working for you. With the right training and a great employee development program, you can promote from within.
Employee appreciation means low turnover rates
When the economy is successful, employers will also see an increase in employee turnover rates. High turnover rates translate to wasted time and resources. Constantly hiring and rehiring new executive level candidates can become very costly. When you promote from within, you gain a level of appreciation from these employees. When you provide them with employee development programs that increase their skills and worth, they are more likely to remain with the company for a longer period of time.
Although all employees in your business may not be ideal for executive positions, you can easily identify those that are by evaluating their soft skills. Soft skills are indicative of employee ability to problem solve, a measure of reliability, and leadership potential. Among the top 10 soft skills sought by employers are work ethic (73%), dependability (73%), positive attitude (72%), self motivation (66%), team orientation (60%), and organization skills (57%). Evaluating each of these soft skills within your current employees is a great starter point for leadership development.
Highly qualified employees means greater business success
Not only are you providing your employees valuable employment skills, but you are also increasing the success of your business. The executive team plays an important part in your business growth. Business success requires a great product or service, exceptional marketing skills, and strategic planning for business growth. Some would say that small business programs are only as successful as their executive team members. Considering that companies fail in hiring good managers 82% of the time, this is a problem. Both employee development programs and sales training programs can increase the skills of the employees, which in turn, increase the profits and success of the business.
Better lower level hiring decisions
In most business structures, the executive level employees are tasked with hiring the lower level employees. These lower level employees are also an important part of a business?s success. Their training and skills will directly affect profits, customer satisfaction, and the overall product or service of the business. A study by University of North Carolina Kenan Flagler Business School and the Human Capital Institute (HCI), found that 85% of respondents agree that there is an urgent need to accelerate the development of their leaders. Part of the need for employee development programs is to make better hiring decisions at the lower employee levels.
Growth of business with increased business ideas
A successful business is also constantly keeping up with the market. To keep up with trending markets, a business needs to have a flow of good ideas. When your executive team members are not contributing innovating ideas to the business, it quickly gets left behind. When you provide your employees with employee development programs that grow their leadership and planning skills, they often are better able to produce ideas that help the business succeed in its current market.
A successful business continues to grow, build upon their ideas, and develop their employees. Many businesses, especially at the medium to small size, fail to provide sufficient employee development programs. Employee development programs are necessary to increase employee satisfaction, reduce turnover rates, grow business success, and make better hiring decisions. The employees that you present to your customers are the face of your business. Without developed skills and advanced leadership qualities, you cannot put a successful face forward.