Strengthen human capital
Investing in your workforce is not only great for the individual, but is also beneficial for the organisation. Many of the ideas mentioned in the column won’t cost much to get started and will make a difference in the lives of the workforce.
If you’re not investing in your team members, you’re not investing in cementing the future; in return, they will take care of your business
Afew years back, I remember being part of Ministry of Tourism’s inception as an inbound tour operator. During my visit, out of curiosity, I asked the Director of the company, “How much do you invest in your team?” He looked at me with silence and after a moment, replied, “Sir, what happens if we invest in developing our people and they leave the organisation?” His statement left me in a dilemma. We often forget that the most effective HR and management practices aren’t incidental, they are linked to company value.
The future that we are looking at is intended to be more challenging, competitive and digital.
If you’re not investing in your team members, you’re not investing in cementing the future of your business. It is important to understand that an investment in your team can range from individual development to financial incentives, to sponsor the motivational workshop, to activities that bring happiness and positive thought. The ultimate aim is that organisations need to show genuine care towards its employees and in return, they will take care of your business.
Benefits of investing in the team
More than 60 per cent of the workforce expects career development in their organisation. The benefits mentioned below demonstrate why it’s important to invest in a human capital development plan to get the most out of your workforce.
Enhance employee satisfaction:
Investing in professional and skill development for your team can lead to greater job satisfaction. As per international research, 48 per cent of team members have said that their organisation’s initiative to professional development is ‘most important to their job satisfaction’. The priority is to care for your employees and in turn, they will give their best performance that will benefit the business.
Improve manpower turnover:
Research proves that 54 per cent of the workforce is concerned about their career advancement opportunities with salary increments, while looking for another job. Another report states that 44 per cent of workforce has mentioned a lack of opportunity for growth and advancement as a major reason for work stress that
leads them to look for another job. These figures prove the importance of career growth. The workforce that has been receiving professional education, skill development, and reasonable remuneration is less likely to look at other job opportunities.
Enhance team engagement:
Enhancing employee engagement is a priority of every SMTO. Engaged employees would be more productive and more loyal to the organisation. Investing in employee development will lead to the growth of employee engagement. Employee career advancement opportunities and investment in their individual development give them a reason to be engaged at work. Ideally, SMTO should ask its workforce in what area they want to develop and then offer opportunities in those particular areas. Personalise your development opportunities to engage your employees at their best.
Better ROI:
Every organisation invests in its human capital. Whether they understand it or not, employee salaries, benefits and perks are all part of an investment. Investing and not paying
the salary is like investing in social media campaigns and not reaching the right audience, which will be an awful investment for the organisation. The right way is to invest in the employees to maximise the return on human capital. Motivate your employees by offering opportunities for growth, skill development, and learning; it will surely improve your bottom line.
Improve organisational communication:
Investing in the team can work to better communication by improving the quantity and quality of the information transmitted inside the organisation. It also helps in building better communication between owner/senior and subordinate.
Team building:
This is another great way of investing in your team. The Gallup Analytics mention that close friendship at the workplace increases employee satisfaction level by 50 per cent, and people with a best friend at work are four times more likely to engage fully in their work.
Investing in your workforce will help to develop loyalty towards your business.
(The views expressed are the author’s own. The publication may or may not subscribe to the same.)