How do you grow your people?

Let’s start with a simple premise, if you are not growing, you are dying.  This can be applied to individuals or organizations.  So what are you doing to help your people grow?

For the sake of this discussion, let’s assume that the top 20% of your organization is relatively stable that is to say, very little turnover, so where does learning or new ideas come from?  What is the spark or catalyst for this group?

It has been suggested that everyone should have a personal learning objective to accomplish each quarter…reading, webinar or industry function attendance, taking college courses, etc., it doesn’t really matter how, just learn!

Fortune magazine recently published its list of “100 Best Companies to Work For” and it should not come as a surprise that these companies invest in their employee’s development.  What may come as a surprise though is that the companies that have appeared on this list have historically grown nearly twice as fast as the S&P 500.

Here is a link to the article FORTUNE’s 18th annual list of the Best Companies to Work For.

Here’s a link to an excellent summary article of what makes these companies great places to work.

These companies provided on average 78 hours per year of training for Manager and Professional level people and 94 hours for Hourly and Administrative people.  Said another way, they invest 2 weeks each in the development of their people.

The late Patrick McGovern, founder of International Data Group (IDG), believed that companies should have a simple set of priorities to manage themselves by.

Grow twice the rate of the local market. – A way to set revenue targets in each country.

Take 10% net to the bottom line. – Spending on growth wasn’t an excuse for low profit.

Spend 3% of payroll on training.  – Invest in your future.

Revenue, profit growth and investment in people targets, simple, comprehensive and elegant.

Most business leaders say “Our employees are our most important asset” but do we act as if we believe it?

Imagine the impact of having smarter, more productive, more engaged employees in return for investing in their personal growth.

We are willing to invest in Repair and Maintenance of our equipment and facilities because we would be out of business if they didn’t work.  What would happen of our employees no longer functioned?  The world is moving at an incredible pace and keeping your people on top of their game is critical to your long-term success and requires ongoing people development.

Maybe it’s time to have an R&M like line for your people on the P&L – a proactive People Development Investment line.

Are you investing for your future, by investing in your people today?

 

[themecolor]Dave Baney is the founder and CEO of 55 Questions, LLC.  We work with successful top executives with a driving ambition to crush their competition. We help CEOs and Entrepreneurs improve alignment, communication and accountability throughout their organization. [/themecolor] http://www.55questions.com

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