Prioritising employee development over shareholder value
A recent statement released by The Business Roundtable, a group of chief executive officers representing nearly 200 major corporations, outlines how investing in employees, delivering value to consumers and dealing ethically with suppliers is now more important than serving the interests of shareholders and maximising profits.
The statement, which has been signed by the likes of Amazon’s Jeff Bezos, Apple’s Tim Cook and GM’s Mary Barra, highlights a new era of focus for corporations across the globe in order to achieve long term success.
In particular, a clear nod to the development of employees in the workplace from some of the biggest organisations in the world is one of the most influential justifications of this area. If the global innovators of today are directly recommending investing in employees, it must surely have some substance.
While the statement itself is only advisory, any business leader wanting to secure long term success for both their company and the community they serve, will no doubt stand up and listen.
So, how can businesses begin to integrate and maintain employee development into their broader business strategy?
The Business Roundtable effect
The Business Roundtable describes itself as “an association of chief executive officers of America’s leading companies working to promote a thriving U.S economy and expanded opportunity for all Americans through sound public policy.”
They are renowned for being thought leaders in the development of new business processes to maximise operations, as the individuals associated with the organisation are typically those who have played a pivotal role in the rise of some of the world’s biggest corporations.
Although primarily focused on the U.S market and the various economic, political and social changes it faces, the rapid globalisation of companies in this country means that any suggestions from The Business Roundtable are widely applicable for businesses in all corners of the world.
Where employees are concerned, their statement reads: “Investing in our employees – this starts with compensating them fairly and providing important benefits. It also includes supporting them through training and education that help develop new skills for a rapidly changing world. We foster diversity and inclusion, dignity and respect.”
Put simply, as opposed to merely hiring individuals with a focus on utilising their skills to maximise profits, businesses in the modern age should be fostering individual talent by investing in ways to boost morale and provide an environment that champions all.
How can businesses prioritise employee development?
While merely committing to a direct investment in the development of the workforce is easy, putting specific methods into practice is an entirely different process which can take a long time to master.
Each business will have different ways of maximising productivity, but ultimately, an effective talent management strategy will provide leaders with a clear indication of what to focus on in terms of:
- Training and development
- Skills gaps
- Employee benefits
Talent management can and should be utilised by businesses of all sizes to provide clear guidance for leaders in terms of what to prioritise to ensure continuity. Where employee development is concerned, a practical talent management strategy will highlight areas where training needs to be focused, identify any areas where employees are struggling, and allow current employees to voice their opinion(s) on what they want from their role(s).
At G&E Partners, we specialise in working with global corporations to construct talent management strategies that serve to benefit the business and ensure long term progression. For more information, please click here.
The importance of employee development from C-suite all the way through a business hierarchy will always be a hot topic for leaders across the world, and the explicit backing from The Business Roundtable further highlights this.
While there is no short term fix to maintaining a working environment that serves the interests of the typical employee as opposed to financial gain, the process can be made inherently easier with the right talent management plan in place.
Adopting the right talent management strategy can boost productivity and ensure long term progression. For help sourcing top talent, contact G&E Partners today.