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Why investing in people is the best deal your company can make

Author

Carlos Eduardo Staut
Carlos Eduardo Staut
Topic
Leadership & Talent Management
Published
Nov. 25, 2024
Read
4 minutes
Why investing in people is the best deal your company can make
What is the key element that drives companies' success? It's not an innovative new technology or a bold marketing strategy. The answer lies in something deeper: investment in people development. Companies that prioritize the growth and skilling of their employees have a significant competitive advantage.

Developing professionals is not an expense but an essential strategy that profoundly impacts the organisation. By offering growth opportunities, you create transformative moments both for your employees and for the company's future. More than a trend, investing in people is the key to unlocking your organisation's true potential in the years to come.

Professional development: a competitive advantage

Companies face challenges in attracting and retaining the best talent. While competitive salaries and benefits are essential, visionary companies understand that professional development is a strategic differentiator.

Robust training and development programs (T&D) increase the chances of innovation and leadership in the market, as pointed out by Deloitte: companies focused on learning are 92% more likely to innovate and 46% more likely to be pioneers in their sectors. This shows that investing in a culture of continuous learning is crucial to maintaining a competitive edge.

Constant development attracts talent and helps retain employees. Professionals who feel challenged and supported in their development are more likely to stay motivated and engaged with the company.

Natalia Segura
Managing Partner, Kestria Spain

‚Professional development not only enhances individual performance but also strengthens collective resilience. Organisations that invest in training their employees to face uncertainties can adapt more quickly to market changes or global disruptions, thereby responding more effectively. In an increasingly uncertain environment, the ability to adapt, learn and transform crises into opportunities is more valued than ever. Resilience is not merely about enduring challenges but turning negative experiences into learning opportunities. This is achieved through action rather than passive observation, underpinned by commitment, a flexible mindset and a proactive and positive approach to overcoming challenges. Professional development should not be viewed as a reactive investment to address current needs but as a proactive tool for building the future of the company. By combining technical training with interpersonal and adaptive skills, organizations will not only lead the market but also create a more human, inclusive, and sustainable work environment. Is your company ready to integrate these dimensions?’ Natalia Segura, Managing Partner, Kestria Spain

Employee engagement and Well-being 

The impact of professional development goes beyond retention. It is a critical factor in employee engagement, increasing productivity and profitability.

According to Gallup data, organizations with engaged teams are 23% more profitable and 14% more productive. In addition, companies with engaged employees achieve a 10% higher customer satisfaction rate.

When employees perceive that their company invests in their growth, they report less absenteeism and burnout and greater satisfaction and fulfillment at work. This creates a positive cycle in which a healthy and engaged team contributes directly to the organisation's success.

Components of an effective development program 

For professional development benefits to be reaped, T&D programs must be well structured.

The first step is to carry out an accurate assessment of the company's needs: What skills and knowledge are missing to achieve strategic objectives? Based on this analysis, customized programs can be created that cater to employees' different learning styles, from on-site training to online courses and practical workshops.

Another critical aspect is promoting a continuous learning culture, which encourages employees to constantly seek out new knowledge and skills.

Steven B. McKinney
Managing Partner, Kestria South Korea

‚Organizations that prioritize learning and development reap significant rewards. I typically see a pattern of at least four things that occur from investment in T&D. They attract top talent, retain key employees, foster innovation, and improve overall performance. By investing in their people, these organizations position themselves for long-term success. Professional development is no longer a nice-to-have; it's a must-have for organizations seeking to thrive in today's dynamic business environment. By prioritizing T&D, companies can unlock the full potential of their workforce, drive innovation, and achieve sustainable growth,' Steven B. McKinney, Managing Partner Kestria South Korea.

Implementing a professional development program

To implement an effective program, you need leadership support, resource allocation, and continuous evaluation of the initiatives' success.

Leaders who encourage learning create an organisational culture aimed at growth. In addition, an adequate budget must be guaranteed to cover materials, training and external events and overcome challenges such as time constraints and resistance to change.

The success of a development program also depends on clear metrics, such as the level of engagement, the acquisition of new skills and performance improvement. These indicators allow actions to be adjusted to ensure consistent results.

Companies that want to lead their sectors need to invest in developing their teams and creating a culture of continuous learning and innovation. This not only attracts and retains talent but also boosts productivity and customer satisfaction, guaranteeing significant results.

Vera Staut
Partner and Executive Director, Kestria Brazil

‚Investing in people’s development means ensuring that the company has, today and in the future, trained professionals to lead with innovation and excellence. Companies that value the growth of their employees inevitably reap extraordinary results,’ Vera Staut, Partner and Executive Director, Kestria Brazil.

Carlos Eduardo Staut
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