Why Spending More Yields Higher Employee Satisfaction.

Last Updated on November 1, 2022 by Owen McGab Enaohwo

Stellar company performance relies on the well-being of the employees. Having satisfied employees can not only ensure a positive and engaging work culture but also enhance the overall company revenue.

However, 35% of staff are either not very satisfied or not at all satisfied according to a 2019 survey from over 150 HR and L&D professionals in the U.K. On the other hand, companies that choose to invest in L&D initiatives at their workplace have in return seen a higher rate of employee satisfaction and even growth in profit margins. HR Magazine has reported that companies investing $1,500 or more per employee per year on training average 24% higher profit margins than companies with lower training investments.

Here are the key reasons why increasing spending on individual employees can result in better employee satisfaction and company performance.

Utilizing Learning and Development Training to Incentivize Employees and Drive Company Performance

There is an increasingly apparent demand for L&D opportunities for employees that can be addressed by additional spending on company-wide training implementations. For instance, 42% of U.K. employees rated learning and development as their most important employee perk in 2019, according to thefindcourses.co.uk 2019 survey. To employers, this presents a great opportunity to invest in their organization in more than one way: happier employees who are also empowered by education to be more effective in their roles.

U.K. companies that tie internal promotion to L&D are 22% more likely to have highly satisfied employees and a greater retention rate. U.S. organizations with highly engaged employees are also 94% more likely to offer classroom training to employees. More importantly, the same companies are more than twice as likely to prioritize soft skills such as leadership and communication over hard, role-specific skills. It is not surprising that employees satisfied at their workplace are also those with better performance, benefiting from the development of these critical skill-sets.

People can only perform as well as they know and tools like a whiteboard calendar can help with organization.

L&D-related spending can be utilized as a strategic investment to stimulate proactive career progression at the workplace and prevent employee turnover challenges faced by all companies alike. Therefore, employers can—and should!—promote training opportunities as an attractive job benefit that will advance the individual employee’s skill competency and professional growth.

Talent Development as A Mean to Ensure Future Success

A strong commitment to employee training spending can formulate a sustainable pipeline of talent for the company. At a time when 76% of millennials consider professional development opportunities one of the most important elements of company culture, it is essential for employers to utilize cutting-edge talent development also as a recruitment strategy that reinforces the company’s competitive advantage.

Studies done by IBM and Deloitte have shown that E-learning can boost productivity by 50% in companies the offer online learning tools and generate up to 26% more revenue per employee. Through establishing a more satisfactory working environment for the present employees, the company can showcase its workplace engagement and benefit from the increased attractiveness to prospective employees, ensuring the long-term prospects of the organization. Hence decreasing expenses in the process.

Higher Employee Satisfaction Rate Fosters Reputable, Productive Company Culture

Diversity and innovation are both associated with a supportive as well as an engaging work environment. In the U.S., organizations are more likely to experience growth and offer the training to support diversity, and 72% of companies offering D&I training are experiencing a period of financial growth. Such organizations experiencing revenue growth in the last financial year are also over three times more likely to predict an increased L&D budget. In other words, these learning initiatives effectively accelerate year-to-year company growth.

Companies should create programs that allow employees to cultivate their individual strengths while building relationships with others on the team. Where there’s support, there’s innovation—and trust needs to exist between team members for innovation and productivity to flourish. The availability of such programs reflects the company’s recognition of employee well-being and dedication to a modern and healthy work dynamic, which can create a more successful workforce.

Bottom Line…

Companies in the U.S. and the U.K. that fulfill and invest in L&D interests demonstrated by the employees are more likely to experience greater employee satisfaction, and in return profit from significant annual growth.

Regardless of the size of your company, increased spending on employee training will contribute to the overall workplace satisfaction and the company’s long-term success.