Success is a universal ambition in business. Many businesses have mastered their product offering and have loyal customers to prove it. Still, only some have managed to tap into the potential of their most significant lever for business success: their talent.
True success is achieved when businesses have productive employees who create exemplary products or services that delight and retain customers.
Companies that fail to invest in their employees find it difficult to succeed, suffer from increased turnover and have difficulty growing profit. Industry leaders connect the dots between employee programs and employee performance—and know how to drive employee, team, and business success.
Human capital is the greatest asset of any organization
Those serious about growing their business understand that investing time and money in marketing is not enough; they must also invest in their people. Whether hiring new staff or providing help to current employees, a business must balance the benefits against the costs. But how can the benefits significantly outweigh the costs? It is possible. Investing in people will always pay off long term.
According to Olia Stasiuk, GPHR® (Global Professional in Human Resources), human capital and organizational development expert: “If businesses want to succeed, they need to invest smartly in the people who make it happen. Companies focusing on improving their employees’ skills and knowledge have shown increased bottom line, higher productivity levels, and better customer satisfaction. And companies who constantly complain that they have no time for it, eventually, either go out of business on triple pay later for taking the reactive approach.
They also tend to have lower turnover rates and fewer complaints about management and development opportunities. In short: investing in human capital is a surefire way for businesses to drive success.”
Investing in employees can set apart a business from the competition
Many experts agree that investing in human capital is one of the best ways businesses can drive profits. A study by Deloitte shows that companies that invest at least 20% of their revenue in training and development outperform their competitors by 5%.
After all, this may seem like common sense. Employees who are well-trained and happy will be more productive and loyal. But what does this mean for a business? How does a company ensure they invest enough in its human capital? And how do they find out which employees need extra attention?
This is where HR and consulting firms play an essential role: it’s up to HR leaders like Stasiuk to evaluate employee performance and identify where there are gaps between what they have learned and what they need to know next. They can then develop strategies for closing those gaps.
Headed by Stasiuk, 360 Transformers utilizes unique strategies to identify the ins and outs of what is happening with their client’s employees. They can interpret data that shows what is going well (and what is not) with people. They are uniquely positioned to drive business success metrics when they have strong and strategic partnerships with senior leadership.
How can a company invest in its human capital?
HR expert Stasiuk explained that the primary goal of any employer should be to create an atmosphere where people can grow and develop their skills. She also emphasized that this process should not be limited only to technical knowledge but also include soft skills such as communication and leadership. “The more we invest in our people, the more they will invest in us,” she said.
Stasiuk believes that human capital is the most critical factor in creating positive business outcomes because it allows organizations to engage their employees more effectively, leading to increased productivity and innovation.
She says that companies need to stop focusing solely on product development and start paying attention to how employees can make a difference. That does not mean throwing money at employees performing poorly or making it easy for them to go on long vacations whenever they want. It means creating an environment where your people feel supported and valued, with clear goals and objectives and the ability to contribute.
It also means investing in employee onboarding, performance, engagement, and retention programs so that employees can continue developing themselves professionally and finish their work day with a feeling of accomplishment and belonging.
Final word
According to Olia, investing in human capital is the best way businesses can stay competitive in today’s market. She believes that by investing in employees’ development and providing them with growth opportunities, companies can create loyal employees who feel valued and appreciated—making them more likely to stay with the company as long as possible.
