In this modern age, business owners are more inclined to automate their systems for faster and more efficient service to their clientele. However, there is still evidence that investing in living human beings is still the best course of action to achieve success in any industry.
This article lists down the most crucial reasons why you should invest in your employees and why spending on employment rather than automation is still the best way to go.
Employment vs. Automation: Why Choose People
Many small-to-medium enterprise businesses shy away from employee training and education. This is mainly because of their fear of the costs they will incur from doing so. But this is only a matter of perspective.
If you look at an employee growth program as an investment, you would realize that it is a rare form of business investment. One that offers a return of your investment longer than any new machine or equipment you can buy.
Alternatively, bigger companies that try to reduce the cost of wages and other human-resource-related expenses by automating as many procedures and processes as they can. While this is understandable, studies have shown that a company would only get the most out of the integration of artificial intelligence if employees would benefit from it.
A recent study from Harvard Business Review emphasized the dichotomy between humans and AI to achieve better productivity in industries.
Based on the study, the integration of robots into the workflow added an estimated 0.4 percentage points to annual labor productivity between 1980 and 2014. However, they noted that the incorporation of this new technology in companies would also contribute to an increase in work stress in roughly the same proportion.
The study concluded that, unless AI is used to help workers become better versions of themselves, it wouldn’t be much help in achieving business success. In short: Employees who are also consumers will accept artificial intelligence more openly if they don’t see it as a threat to their way of life.
5 More Reasons Why You Should Invest in Your Team
Investing in your employees can help you establish lower turnover rates and a better quality of work output. This translates not only in your overall company revenue but also in the unspoken state of your company culture.
Still unsure why you should spend money on team coaching programs? Here are five more reasons that could convince you to make the best investment of your life:
1. Boosted morale
After considering the big picture in the comparison between investing in automation and employment, you’re probably thinking: “What will a happy and contented employee offer my company?”
Well, the answer is quite simple. When employees feel good when they go to work, they feel more energized to perform better. On top of that, this energy they bring is contagious and can affect the entire organization, making others feel their morale boosted as well.
While this is something intangible, you can feel the good vibe in the air. This will result in people buzzing with productivity every day.
2. Improved retention
HR is the aspect of an organization that makes the biggest monetary losses, especially if employee turnover is high. And one of the most common reasons why employees quit their jobs is the lack of training and growth opportunities, based on a past study on employee engagement.
In the study, 40 percent of poorly trained employees revealed that they left their jobs due to general dissatisfaction and scarce growth opportunities within the company. On the side of the business owner, the study explained that this translates to turnover costs of as much as $11 billion annually (data sampled in the United States).
These numbers clearly prove that investing in employee development and training not only pays off, but it will also reduce HR costs. The bottom line: You can avoid losing money if you invest in your people.
3. Ease in building an all-star team
Employees are the lifeblood of a company. They fuel the intricate machinery of an organization so that it can reach its destination efficiently.
For this very reason, it is imperative that you hire great talents to help drive your company towards success. To do so, you must make sure that you have the best possible employment conditions. This will not only help you retain the best workers you already have but also to reel in more great people into your team.
During recruitment, make sure that you present every possible advantage your company has over others, especially the benefits you offer that your competitors don’t. This should always include training and other opportunities that help a person reach his potential.
Remember that the recruitment process is not only about good employees showing that they have what it takes – it also entails great companies proving that their worth the effort.
4. Better company reputation and loyalty
Building a reputation as a great place to work is a great way to establish your firm as an authority in your chosen niche. Also, word of your excellent work culture and support for employee growth can spread like wildfire, making it easier to attract the most viable candidates in recruitment.
Plus, offering your employees a chance to grow within the company also engraves a sense of loyalty in them. When people feel safe, they would trust the company and start to feel a sense of ownership in whatever they do. This is why many employees who are content with their firms take the initiative to lift the company up.
5. Ensured company longevity
When your people are nurtured within an organization, they start to take responsibility for helping the company grow. This means that the firm’s future is ensured.
You already have potential leaders within your ranks, someone would be able to continue the pace your business is in or initiate changes that would transform the company for the better. Either way, you’re assured that someone will do whatever needs to be done to keep the organization alive and growing.
Also, keeping your staff trained will help your company stay up-to-date with the latest industry trends. With this, your team can always move forward — be it in anticipating the needs of your customers, applying innovations, and adapting to new industry policies.
Help Your People Help You
No matter the size of business you run, you must always look at the bigger picture. Whether it’s about deciding between automation and training personnel or something else, you must make sure that you consider your long-term goals. Now that you know the reasons why you should invest in your employees, the next thing to do is take action in helping your people help you.