Investing in people propels companies forward
In today’s economic competition, investing in the development of employees’ skills is decisive. This approach not only improves individual performance, but also has a significant impact on a company’s bottom line.
Research by prestigious consulting firms indicates that skills acquired on the job contribute 46% to a person’s lifetime earnings. Companies that actively invest in building human capital achieve higher levels of employee engagement and job satisfaction. At the same time, the loyalty and value of the employer brand also increases.
Employee training is not an expense, but an investment
The benefits of prioritizing human capital development extend beyond immediate gains. Companies that focus on Learning & Development not only have higher revenues, but also greater resilience during crises. So these companies achieve superior profitability, but also stand out for their organizational resilience and talent retention capacity. They are characterized by an organizational culture that encourages and empowers employees, favoring innovation.
To learn more about the relationship between investing in people and business success, we consulted the analysis carried out by the McKinsey consulting company at the level of 1,800 large companies in 15 countries. The findings highlighted distinct groups of companies based on their focus on human capital development and the relationship of this activity with financial performance.
Companies that have consistently and strategically placed an emphasis on employee training have stood out as a distinct category, excelling in creating opportunities to develop the skills of the people on their teams and consistently achieving superior financial performance.
Employee training brings superior financial results
Unlike performance-focused companies, which prioritize financial results over employee skill development, companies in the first category emphasize both results and skill development, leading to consistently better results and superior talent retention.
In addition, investment in human capital is associated with stability and resilience in various segments. People-centered companies, while not achieving top financial performance, demonstrate greater stability and resilience compared to ordinary companies.
The success ensured including through training and the performance resulting from the up-to-date maintenance of key skills, is not exclusively attributed to the investment in human capital, but also depends on effective organizational management. It includes management practices, systems and technology input within the company, which play a crucial role in focusing efforts towards tangible results. Top companies differentiate themselves through consultative leadership styles that empower employees to participate in innovation and have inclusive work environments.
Measures that make training programs more profitable
Even among companies that routinely invest a significant portion of their revenue in employee training, the effectiveness of these investments varies. And among these are some that achieve a significantly higher increase in income for each euro invested in human and organizational capital, compared to other companies.
Measures that contribute to greater profitability in training programs include customizing courses according to the individual needs of employees, periodic assessment of progress and monitoring the application of knowledge in the real context of the activity. Constant feedback also improves the effectiveness and relevance of programs.
The implementation of modern technologies and interactive learning methods can stimulate the involvement and retention of information. In addition, monitoring the impact on team performance and financial results effectively complement strategies to maximize training profitability.
In conclusion
Business managers and leaders must recognize the value of human capital development on business success. Beyond financial returns, investing in people and building an organizational culture that breeds trust and accountability improves results, talent retention and overall company competitiveness.
Implementing such changes may require changing company-wide strategic approaches and thinking or changing behavior on the part of leaders. Managers play a very important role in setting the tone for the teams they lead and are the main catalysts for improving the employee experience.
Alina Făniță este CEO și Partener al PKF Finconta. A lucrat cu companii multinaționale sau firme antreprenoriale din domenii diverse de activitate, pentru a le oferi servicii de audit financiar, due diligence, restructurări de grupuri, audit intern și alte servicii conexe activității de control intern. Este membră a celor mai prestigioase asociații profesionale din domeniu: ACCA (Association of Chartered Certified Accountants), CECCAR (Corpul Experților Contabili și Contabililior Autorizați din România), CAFR (Camera Auditorilor Financiari) și IIA (Institute of Internal Auditors). A absolvit EMBA Asebuss la Kennesaw State University, a fost trainer pentru cursuri IFRS și este invitată ca expert la numeroase conferințe de business. alina.fanita@pkffinconta.ro
