Employee development is of paramount importance for companies big and small that is tangibly tethered to the idea of growth. It no longer is just the responsibility of the HR Department or the CLO. CFOs nowadays have a duty to oversee employee development and identify it as a cornerstone through which success can be achieved in the short term. However, it is also true that chasing employee development has its fair share of negatives. Chiefly among these drawbacks is the fact that it is an expensive venture to take up. More so, because pursuing development at the ground level would require employees to be wrenched from their primary functions. While these negatives can act as a deterrent for many CFOs from meaningfully pursuing employee development, there is tremendous value to be achieved in the long term by giving this process prime importance. Here Are a few ways employee development can bring positive changes for your company.
Attrition has long been identified as the number one killer of otherwise good companies. For a CFO charged with the development agenda, it is obvious that employees thrive in an environment that constantly offers them growth professionally as well as personally. Hence, abdicating the development agenda through education is essentially a mistake that could be woefully short sighted. When you take into account the fact that professional growth is a basic human need, from a companies perspective it is only logical to make sure the employees have constant access to tools that would help them grow professionally and acquire skills that could serve them well in their careers. Therefore, a CFO constantly churning out new avenues of education for his/her employees is on the right track.
The value of avoiding loss is more or less intangible but the value of a well trained employee, however is not. Well trained employees are the foot soldiers who can sometimes make decisions that will help companies avoid losses. This can only stem from giving them stable training modules that are laced with the CFOs overarching developmental agendas. To take a perspective that is based on the long haul, avoiding losses through means of a well trained employee would potentially mean that the company has more access to revenue shares that can then be used to compete in the market. Not only does this increase an organisations chance of flourishing but at the same time opens avenues for growth throughout the company.
50 per cent of the Indian population is below the age of 25. There is a resurgence of youth in this country’s demographic. Companies should be well aware of these numbers and cater to the changing perceptions of what an ideal job should offer. As a CFO it is importance to understand that when you let go of how expensive employee development can be in the long term, a plethora of avenues open up that will benefit your organisation in very real ways. As the ageing demographic that are already well established into their careers come in contact with the untested youth, it becomes the responsibility of the management to help both these groups function optimally. Employee development programs can go a long way in training them in the optimal ways to function productively.
A Flexible View on ROI
Return of Investment (ROI) is important for CFOs. It is the cornerstone of his job profile. Profit margins can make and break a CFOs profile. However, it is very important to take the long term view when it come to analysing the ROI attached to employee development programs. This is because it is very easy to discard them as useless when you look at the sheer numbers that work behind establishing these processes. However, also know that the rewards that come attached with the process have the potential to give the company the breakthroughs it needs to move to the next level.
Employee development programs are beneficial for companies as well as the employees it expects to make a difference. It is a useful tool that identifies the needs of both the employees as well as the company and brings cognizance to collective development all around. A CFO should ideally consider it as a primary marker of a successful company. As the popular example goes:
“CFO asks CEO: “What happens if we invest in developing our people & then they leave us?” CEO: ‘What happens if we don’t, and they stay?”