1. Holistic development (soft skills)
People Development aids in wholesome improvement of people as it offers upskilling in areas that are not only directly involved in the day-to-day tasks of the employee based on their job profiles. Often, these focus soft skills which aid in improving interpersonal relations and communication, better teamwork, leadership and management skills, time management, decision making, critical thinking and so on.
2. Increase employee engagement
One of the most important benefits is that the company ends up having skilled and capable staff. Employees are also more committed to a firm that invests in their development. People Development results in and itself is a result of employee engagement. Employee engagement is the commitment that an employee has to the organisation such that it drives them to work successfully to achieve the goals of their organisation. Employee engagement further results in increased profits, productivity, as well as reduced turnover of staff. Taking steps for people development in your organisation offers progress both personally and professionally, creating a more engaged workforce.
3. Retention of Talent
A strong learning culture led to 30–50% high retention rates in companies. Aiding in developing of skills both professionally (with respect to the job of the employee specifically) as well as personally (that deals with soft skills) attracts employees to stay in the organisation that helps in retaining your workforce and talent. In a study, it was found that 86% of millennials would be kept from leaving their current position if training and development were offered by their employer. Engaging, training, appreciating, and providing constructive feedback provide a base for employee to want to stay in their organisation. This further aids in saving funds in the long run.
4. Reduces Cost
On an average, the cost of hiring and recruiting an employee is higher than that of retaining, reskilling, and upskilling the staff of the organisation. The cost of recruiting a new employee range from putting up advertisements, going through the selection process, as well as the added time of the employee settling in with the job profile, understanding and working with the nuances, along with training and costs of management. A reduced turnover, hence, helps in saving money. Furthermore, the cost of replacing an employee rises in tandem with their base pay, making retraining a considerably more cost-effective choice.
5. Attracts new talent
Creating a culture of constant learning in your company can make your organisation more attractive to new talent. It is not simply enough to set a good pay, or provide job satisfaction to the employees, for that does not directly equate with employees staying in the company. Providing opportunities to grow professionally and personally will create a base of loyal employees as well as make your company look desirable to new ones.
6. Improves Performance
Seventy-four percent of respondents believe that the development of new skills and capabilities is strategically important in their organization, but less than one-third (32 percent) say they are rewarded for developing new skills. Giving employees opportunities to develop also equips them with different skills to help them perform better. Investing a little as $500 in employee development yielded 46.1%-win rate improvement, while a $5,000 investment produced 51.4% more wins for the company.
7. Increases Productivity
For a variety of additional reasons, providing learning, development, and training adds a competitive advantage to the company. This reflects that the employees are more productive in nature, as they are more dedicated and better engaged. This is directly proportional to the profit that that company gains. A motivated and willing workforce can productively and successfully attain goals.
8. Increases Profitability
Companies that have engaged workers report 21% higher profitability and were scored 17% higher on productivity. Employees that are engaged work harder, do a better job, increase customer happiness and loyalty, and provide significant value to the company. Furthermore, they will aid in boosting profitability, and they will frequently lead innovation within their team, department, or business.