How to Invest in People
As a savvy business leader, you understand the power of investment. You strategically allocate resources to assets with the potential to appreciate in value, generating returns that fuel growth and success. But have you considered that your employees are your most valuable asset?
Just like real estate, stocks, or businesses, your employees represent human capital – a dynamic resource with the potential for significant appreciation. By investing in your employees, you can unlock their hidden potential, drive productivity, and achieve remarkable returns for your organization.
Spotting Undervalued Talent
The key to successful investing lies in identifying undervalued assets. This principle applies to human capital as well. Look beyond the obvious and consider candidates who may possess untapped potential.
Here are some job applicant types to look for and current staff profiles to tap into for investment:
The Inexperienced Enthusiast: While lacking direct experience, this individual demonstrates a strong work ethic, eagerness to learn, and a passion for your industry. With proper training and mentorship, they could become a star performer.
The Eager Learner: This candidate may not have all the required skills, but they possess a growth mindset and a hunger for knowledge. Investing in their development can yield significant returns in the long run.
The Social Butterfly: This individual excels in communication and interpersonal skills, but may need technical training. By providing opportunities to develop their technical expertise, you can unlock their full potential.
The Career Detour: Life circumstances may have led this candidate on a different path, but their past experience and skills are still valuable. With some upskilling and support, they can successfully re-enter the workforce and contribute significantly to your team.
The Diamond in the Rough: This candidate may have been overlooked due to gaps in their resume or unconventional career paths. However, their underlying talent and potential shine through. With the right investment, they can become a valuable asset to your organization.
Investing in Human Capital
Just as you would invest in a property to increase its value, you can invest in your employees to enhance their skills, knowledge, and performance. Here are some key tactics to use:
Fundamental Skills Training: Get REALLY good at training people without experience. Have a standard operating procedure and/or a dedicated trainer who can take newbies and turn them into pros.
Professional Development: Provide opportunities for employees to attend conferences, workshops, and training programs to enhance their skills and knowledge.
Mentorship Programs: Pair experienced employees with newer ones to foster knowledge transfer, skill development, and a sense of community. Or, as the leader of their team, spend time with them yourself and teach them to look at the business the way that you do. Discuss challenges, ask their opinions, and share your thought process.
Project Work or Job Expansion: Assign projects to high potential staff or add new duties to their jobs. One way I’ve seen this successfully done is by having employees create social media content for your business.
Tuition Assistance: Support employees who wish to pursue further education or certifications that align with their career goals and the company's needs.
Leadership Development: Identify high-potential employees and provide them with leadership training and opportunities to develop their management skills.
Employee Wellness Programs: Invest in programs that promote employee well-being, such as stress management workshops, fitness classes, or healthy snacks in the breakroom.
Recognition and Rewards: Acknowledge and reward employees for their contributions, fostering a culture of appreciation and motivation. Make sure that as employees raise their skills and value that you reflect that in their compensation, or else they will take their knowledge and abilities elsewhere.
Reaping the Rewards
Investing in your employees yields a multitude of benefits, including:
Increased Productivity: Well-trained, engaged employees are more productive, efficient, and contribute to a higher quality of work.
Improved Retention: Employees who feel valued and invested in are more likely to stay with your company, reducing turnover costs and maintaining organizational knowledge.
Enhanced Innovation: A culture of learning and development fosters creativity and innovation, leading to new ideas and improved processes.
Stronger Employer Brand: Investing in your employees creates a positive reputation for your company, attracting top talent and enhancing your employer brand.
Increased Profitability: Ultimately, investing in your employees leads to a more engaged, productive, and profitable workforce.
Partner with Seasoned Advice
At Seasoned Advice, we understand the importance of investing in human capital. We can help you develop a comprehensive recruiting, selection, and development plan that identifies undervalued talent and aligns with your business goals. Our expertise in HR consulting ensures you attract, develop, and retain the best employees, maximizing your human capital gains and driving your business success.
Contact us today to learn how we can help you build a winning team and unlock the full potential of your workforce.
