When we think about boosting the bottom line, the focus is often on reducing costs, increasing revenue and cutting unnecessary expenses. But what about using less obvious strategies? One powerful method is to invest in employees. While it may be more tricky to quantify the return on this investment, there are many signs that this move could result in significant financial returns.

I have presented on employee engagement and investing in employees several times. To begin, I ask audience members to answer a simple question: Do you think of employee development as an expense or as an investment in your company? 

Some people look confused, but in others, I can see the wheels begin to turn in their heads. I then ask them to consider how they perceive the expenses associated with operating their equipment. Do they hesitate to put new tires on a truck or have the oil changed? Most people say no because these maintenance expenses help crews be productive and make more money. I return to my first question and ask why many managers think of employee development as an expense and not an investment.

Investing where it counts

Just like equipment needs fuel to run and maintenance and repairs to operate efficiently and safely, employees require some routine care. We tend to hire employees with certain skill set for a specific position. 

As an organization grows and the industry evolves, we must ensure our employees are equipped with the skills and experience necessary to succeed. Even when employees remain in the same roles for years, how they do their jobs may have changed. New technology has become available, emerging methods and materials have become mainstream and the work environment may feel different than it did.

There are many ways we can invest in employees, including training and development programs, mentorship, team building, a winning company culture and competitive compensation and benefits. Of course, some of these ideas require more significant investment than others, but some take only a little thought and time to implement.

For example, a training and development program may mean sending employees away to classes or seminars. However, it can also be done internally, with more experienced employees sharing their talents and teaching others. Initiating a mentorship program takes very little money and can benefit the mentor and mentee. The mentor feels valued for their knowledge and wisdom, and the mentee knows that the company is investing in their success.

Retaining good workers

The construction economy is booming and the need for trained workers has never been greater. We need new employees to support growth and retain the good workers we have. 

Recent studies have shown that replacing an employee can cost half to two times the employee’s annual salary. These figures are primarily based on the hard costs of finding and recruiting new employees and don’t account for soft costs, such as lowered productivity and morale and the time to hire and train new employees. Why aren’t we investing in our current employees and ensuring the good ones we have are engaged?

Research over the past few years shows that companies that invest in their employees tend to see less absenteeism, lower turnover, fewer accidents, better performance and increased productivity. Employees in these companies have increased levels of job satisfaction and better morale, discover new talents, gain help addressing weaknesses and have a higher level of engagement. Companies with engaged employees tend to have an advantage over their competition, benefiting from an internal talent pool and higher profits.

Unique approaches

Remember, there’s no one-size-fits-all approach to employee engagement. What motivates one person may not work for another. And it may not be best to invest in an employee with one foot out the door. 

However, having a clear picture of your goals and knowing what motivates each employee allows for a more tailored approach to investing in them. Once you create alignment with company goals and know how to maximize investment in each employee, you will see a great return on your investment.

Employees engaged in their work deliver better results for your customers. When customers are happy, they will use your services again and tell others to use them. 

As J.W. Marriott, founder of Marriott Hotels, said, “Take good care of your employees; they’ll take good care of your customers, and the customers will come back.”

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