Investing In People: A Guide

Investing in people is a concept that has gained traction in recent years, with many organisations recognising the value of their employees as their most valuable asset. This shift in perspective sees employees as central to the success of any business, with their talent, motivation and leadership skills driving organisational performance. The famous economist, John Kenneth Galbraith, warned against the tendency to over invest in things and under invest in people. This notion is supported by studies showing that investing in employee development and wellbeing leads to increased productivity and profitability.

The COVID-19 pandemic has also highlighted the importance of investing in people, with governments worldwide stepping up to protect their populations through innovative solutions in education, healthcare, and social safety nets. As we navigate economic downturns and rapid technological advancements, investing in employees' skills, engagement, and overall satisfaction becomes even more crucial.

By prioritising employees, listening with compassion, and keeping them informed, leaders can foster a culture of trust, motivation, and loyalty. Ultimately, investing in people is a key strategy for businesses to enhance their competitive advantage, drive innovation, and build a resilient and successful organisation.

Prioritise employee health and wellbeing

Prioritising employee health and wellbeing is not just an ethical priority, but it also makes good business sense. A company's success is tied to the health and wellbeing of its employees. For example, according to a Gallup study, a missed workday due to mental health can cost a company about $340 per day for full-time workers.

Lead by Example

Business leaders who prioritise their own health and wellbeing are more likely to have employees who follow suit. This also helps employees feel valued and motivated to take care of their own health.

Create a Culture of Health and Wellbeing

According to one study, 81% of large firms offered some type of workplace wellness program in 2020. Wellness programs can include physical activity programs, smoking cessation programs, stress management workshops, mindfulness training, and nutrition education. These programs can help improve employee health, reduce absenteeism, and increase productivity.

Offer Mental Health Resources

Mental health is a critical component of overall health. Offering resources like an Employee Assistance Program (EAP) can help employees manage issues like stress, anxiety, and depression. EAPs typically offer confidential counselling services and referrals to mental health professionals.

Provide Flexible Work Arrangements

Flexible work arrangements like remote work or flexible hours can help employees better manage their time and reduce stress. Employees who have more control over their schedules are less likely to experience work-related stress and are more satisfied with their jobs.

Encourage Social Connections and Team Building

Building strong social connections within the workplace can boost employee morale and satisfaction. Encourage team-building activities, social events, and opportunities for colleagues to connect and get to know each other.

Support Work-Life Integration

Help employees maintain a healthy work-life balance by promoting flexible work arrangements and realistic workload expectations. Encourage employees to take regular breaks and time off to recharge and avoid burnout.

By prioritising employee health and wellbeing, businesses can create a happier, healthier, and more productive workplace, as well as attract and retain top talent.

Develop a culture of compassion

Developing a culture of compassion is a powerful way to invest in your people and it starts with leaders who are willing to listen with empathy and vulnerability. It involves creating an environment where employees feel valued, understood, and supported. Here are some ways to achieve this:

Lead with Compassion

Leaders should strive to listen with compassion and empathy, creating a safe space for employees to share their concerns, anxieties, and opinions. This involves being present and available for their team, both physically and virtually. By prioritising social support, especially during challenging economic times or crises like the COVID-19 pandemic, leaders can effectively manage their team's stress and anxiety.

Make Employees Your Top Priority

Putting employees first means investing time and effort to understand what motivates and stresses them. This can be achieved by going beyond surface-level interactions and creating an environment where employees feel comfortable sharing their thoughts and experiences. When leaders prioritise the well-being and satisfaction of their team, it positively impacts customer satisfaction and the company's reputation, ultimately contributing to better talent retention and attraction.

Foster Open Communication

Encourage open and honest communication by creating a non-judgmental and supportive environment. This involves actively inviting quieter team members to share their thoughts and ensuring everyone feels heard. When employees feel comfortable expressing themselves, it strengthens their connection to the organisation and promotes a culture of compassion.

Practise Microcompassions

Microcompassions are small, intentional actions that lift someone up and make them feel valued. This could be as simple as smiling, greeting someone warmly, or noticing and complimenting something about them. These simple gestures can brighten someone's day and strengthen your connection with them.

Ask Meaningful Questions

Get curious about your team members' lives and ask questions that show your interest in them as individuals. Inquire about their hobbies, passions, or current projects. Ask about what they are grateful for or what brings them joy. These conversations can help build stronger relationships and foster a sense of community within the team.

By implementing these strategies, leaders can create a culture of compassion, contributing to improved employee satisfaction, engagement, and well-being. This, in turn, leads to increased productivity and better organisational stability and success.

Invest in employee training and development

Investing in employee training and development is a highly profitable strategy for any business. It is a way to build a competitive advantage and foster a unique business that is not solely reliant on machines and IT systems.

Firstly, employee training and development can help to attract and retain great talent. Employees value training initiatives as a way to improve their craft and develop their skills. This enhances a company's reputation as a good employer, creating a goldmine of talent that will give the business a market edge. By investing in existing employees, companies can reduce turnover rates and save money on recruitment costs.

Secondly, training can increase employee engagement and satisfaction. It provides learning opportunities and a chance for employees to develop their communication skills and improve interactions with each other and their managers. This can lead to better understanding, alignment, and engagement within teams and across the organization.

Thirdly, employee training and development can help identify employees worthy of promotion. Trained employees can form a pool of candidates for future promotions as they have developed certain levels of competence over time. This is especially beneficial for managerial or executive posts, as internal candidates are already familiar with the business operations and organizational structure.

Finally, employee training and development can translate into savings for the company. Effective training programs empower employees to become multi-skilled, allowing them to take on a variety of functions and transition into other roles within the organization. This reduces costs associated with hiring new employees and enhances employee motivation and satisfaction.

Overall, investing in employee training and development is a strategic investment that boosts leadership skills, team performance, and the overall success of the organization.

Focus on employee retention

Employee retention is an organization's ability to keep its employees. It is important to focus on employee retention because of the high costs, in terms of time, money, and productivity, associated with employee turnover. Turnover rates can span anywhere from 20% in public-sector roles to 60% in professional services. Replacing employees is expensive, with costs ranging from 16% to 213% of an employee's salary. Additionally, the time spent on advertising, interviewing, onboarding, and training new employees takes a toll on the organization's resources.

When employees leave, they take their knowledge with them, which can lead to knowledge loss and confusion among remaining team members. This can cause a decline in productivity and morale. It takes a long time to bring a new hire up to maximum productivity levels, with research suggesting it takes one to two years for a new employee to achieve the productivity of an existing employee.

Competitive Compensation

Offer competitive base salaries or hourly wages that are in line with the living wage in your area and regularly adjusted for inflation. Ensure that employees are compensated fairly as their experience level and responsibilities grow.

Remote Work and Flexible Scheduling

Allow employees to work from home, either entirely or partially, to reduce commute times and increase flexibility. Provide flexible scheduling and reduced workdays to encourage employees to find the times they are most efficient and productive.

Work-Life Balance

Encourage and promote a healthy work-life balance. Respect employees' time away from work and discourage them from checking emails or answering work questions outside of work hours.

Recognition and Rewards

Recognize and reward employees for their work. Ensure that employees feel appropriately recognized and valued by the company, both socially and through monetary rewards.

Company Culture

Create a company culture that employees want to be a part of. Implement measures to promote diversity and inclusion, especially for members of marginalized communities. Reward employees for their efforts and involve them in creative decision-making.

Employee Engagement

Build employee engagement by giving employees a voice and making them feel listened to. Provide opportunities for candid feedback and collaboration on workflow improvements. Avoid forcing unnecessary engagement or pushing activities without a specific goal in mind.

Teamwork

Create an emphasis on teamwork and collaboration, including interdepartmental collaboration. This promotes bonding between coworkers and drives higher overall performance.

Reduce Burnout

Take measures to reduce employee burnout by addressing factors such as unfair treatment, unmanageable workload, unclear communication, lack of manager support, and unreasonable time pressure.

Wellness Offerings

Provide wellness offerings such as flexible scheduling, remote work options, and quality health insurance. Implement health and safety protocols and encourage employees to stay home when sick.

Professional and Personal Development

Foster growth and offer professional and personal development opportunities. Provide access to additional education and training within employees' fields to make them happier and more likely to stay with the company.

Cultural Fit

Hire for cultural fit to ensure new hires mesh well with the existing team, improving comfort and productivity.

Effective Management

Manage for retention by acting as a "coach" rather than a "boss." Guide employees by offering advice and support while allowing them a high degree of autonomy.

By implementing these strategies, organizations can improve employee retention, leading to increased productivity, higher morale, and better company culture.

Embrace disruptive and transformative technology

Disruptive innovation is a powerful force that reshapes industries and transforms the way we live, work, and interact. It refers to the introduction of new technologies or business models that disrupt existing markets and create new ones. In a fast-paced and ever-changing business landscape, embracing disruptive innovation is crucial for staying relevant and achieving long-term success. Here are some ways to embrace and harness the power of disruptive and transformative technology:

Foster a Culture of Experimentation and Agility

To embrace disruptive innovation, organizations must encourage a culture that values and rewards innovation. Employees should be encouraged to think outside the box, challenge the status quo, and explore new ideas. By creating an innovative environment, companies can attract top talent, stay ahead of the competition, and adapt to evolving technologies.

Continuous Learning and Adaptation

Individuals and organizations must commit to continuous learning and adaptation to keep up with the rapid pace of innovation. This involves staying updated on emerging technologies, attending industry conferences, and engaging in professional development activities. By investing in ongoing learning, individuals can acquire the skills needed to leverage disruptive technologies effectively.

Identify Opportunities and Stay Ahead of the Curve

Companies must continuously scan the market and identify potential disruptive technologies that align with their business goals. By monitoring emerging trends, attending industry events, and fostering a culture of innovation, businesses can seize opportunities and position themselves as industry leaders.

Evaluate Risks and Rewards

While disruptive innovation offers exciting possibilities, it also comes with inherent risks. Organizations should carefully assess the potential impact and feasibility of adopting disruptive technologies or business models. Conducting thorough market research, assessing scalability, and considering potential risks are crucial steps in making informed decisions.

Collaboration and Partnerships

Collaborating with startups, technology companies, or innovative businesses can be a strategic approach to embracing disruptive innovation. By partnering with external organizations, businesses can gain access to cutting-edge technologies, fresh perspectives, and valuable expertise. This can accelerate the adoption of disruptive technologies and mitigate the risks involved.

Customer-Centric Approach

Understanding customer needs and preferences is essential when embracing disruptive innovation. Companies must prioritize user experience and ensure that new technologies address real pain points. By adopting a customer-centric approach, businesses can create products and services that resonate with their target audience and drive adoption.

Overcoming Challenges

Adopting disruptive innovation can come with challenges, such as resistance to change, fear of the unknown, cost constraints, and skill deficiencies. Effective change management strategies, clear communication, employee involvement, and upskilling programs can help organizations overcome these hurdles and foster a culture receptive to change.

By embracing disruptive and transformative technology, organizations can drive growth, gain a competitive edge, and create a culture of continuous improvement. It is essential to stay agile, adapt to market changes, and invest in the right technologies to shape a promising technological future.

Frequently asked questions