Leaders are constantly mulling the question of How much should I be investing on staff development? On one side of the fence (aka Fixed Mindset) you could say the average tenure of staff is at an all-time low, staff loyalty doesn’t really exist in 2020 and that we’d be much better to save the cash and allocate it elsewhere. Besides, what does it really do to your bottom line?
OK. Enough of that!
Fortunately researchers have now shown that staff development isn’t just warm fuzzy-holding-hands-experiences. It impacts BIG TIME on your bottom line.
So. How much should I be investing? Drum roll…
The magic number is:
Say what Cas? That’s right. Organisations that invest $2,300aud per employee annually, have 24% higher gross margins (and 218% higher income per employee) than those that don’t*.
As leaders, you can be so focussed on hitting milestones, preserving budgets and working on tight deadlines it’s easy to push employee development to the bottom of the never-ending to do list.
Kicking off FY2020, I challenge you to think about whether you are sufficiently prioritising the development of your organisations most important competitive advantage- your people.