Investing in People Will Return Profits
In any organization, it is the people who make the difference. If you can effectively hire the right people and then use them in the correct ways, you can help both them and your organization produce at the highest capacity.
You can hire all of the wrong people, train and inspire them to produce at their best, and you will get the best work that they are capable of. You can also hire all of the best people and suffocate and stifle them until they produce only minimally.
The key is to hire the right people and know the right ways to keep them motivated and happy. All of the high-priced systems or tools in the world will not be able to match the value of a happy, well-trained and correctly used workforce.
This is especially true in Agile environment, where people are at the very heart of the method. People are what make Agile work, and it is worth organizations time and effort to invest in the people who make your business run.
How Investing in People Profits Organizations?
Those organizations that emphasize human relations are better at creating loyal employees, keeping them happy, and allowing them to flourish within their culture. But what is even more exciting is that in turn, organizations that practice great human relations are rewarded in regards to their bottom line.
How much do they profit? Here are some numbers to illustrate the rewards of investing in your employees:
- Organizations who improve their recruitment see a 3.5 times revenue growth and twice the profit margin compared to companies who are not as adept at recruitment.
- Those who successfully incorporate new employees into their culture and have higher employee loyalty see a 2.5 times revenue growth and nearly twice the profit margin.
- Organizations that place talent management as top priority double their revenue growth and their profit margin.
The companies that are most successful at investing in their employees had the following things in common: they invest in their leaders and managers, they invest in talent management, and they give rewards and recognition based on performance.
Investing in employees may seem costly and time consuming in the present but the investment will pay off. Our organizations are only as good as the people in it.
Comments
Why don't you talk to them and provide constructive feedback on how they can improve? Often, organizations already have some programs in place. Unfortunately, many of these programs are not successful.
Certainly. Feel free to contact me if you need research material that I have used for this article.
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