Do you sometimes worry that if your people become too marketable they will leave your company? I once heard an executive suggest that his company offer certificate programs rather than degree programs. This would ensure that his people built needed skills. Without a formal degree, they would be less attractive to competitors and less likely to leave. Conventional wisdom suggests that you should only invest enough in your people to meet your business needs. This is misguided thinking. The reality is that failing to help your people become more marketable is more likely to drive them away. A 2004 report by Hewitt on Best Employers provides an explanation:
Most employees, especially top-notch employees, anticipate change and respond to the uncertainty in the business environment by continually learning about their industries and updating their job skills. Rather than seeking security from their jobs, they focus on remaining marketable in the event of a voluntary or involuntary job change. Thus, it’s no wonder that when looking for a company to work for, employees place high value on intangibles, such as advancement and learning opportunities, work/life balance, recognition, and being treated with respect. (What Makes a Best Employer Insights and Findings From Hewitt’s Global Best Employers Study, 2004)
People don’t leave companies because they get degrees or increase their market relevance. They leave because their companies are not meeting their needs.
Glenn Miller, managing partner of the Miller Group – a company that owns and operates over 30 fast food franchises in Illinois and Virginia, makes the point quite well:
“I work hard to build my people’s skills and expertise so they are more
marketable. Because they are more marketable, I then work even harder to
make the Miller Group their first choice for employment. As a result, I
get top people producing great results”
The Miller Group has had no turnover of store managers for the past two years. This is almost unheard of in the fast food industry. Their overall employee turnover is also among the lowest in the industry.
Instead of trying to make your people less attractive to your competitors, focus on making your company more attractive to your people.
But, why waste money developing an employee for someone else’s business?
The question about investing in people often becomes a discussion of ROI. People often make two mistakes in having this discussion: 1) only considering a very small piece of the return and 2) only considering the “hard” numbers. The return on funding people’s education doesn’t begin after the degree is completed. It begins with the ability to recruit better people. It then continues through increased engagement and satisfaction. Finally, it pays off during and after the program with better performance.
Better people
Having a reputation as an employer who develops people for internal or external success will attract better talent and help increase retention and engagement. In the book, Return on Learning, the global consulting company Accenture found that their reputation for learning has a direct impact on the quality of the candidates they can hire. Personal development is a top reason that people join Accenture. Through an independent study, they also found that people are willing to take a lower salary ($6,000) for better development opportunities.
More engaged people
People have a natural urge to reciprocate. The person who you are supporting through a degree program is more likely to work harder for the organization than one who feels you don’t care. Accenture also found a link between investment in people and satisfaction and engagement. In particular they found that employees who say they have access to the training they need to be successful are more likely to believe that 1) they are compensated fairly, 2) they will be with the company in two years, and 3) Accenture is a great place to work.
Better performance
If people’s external market relevance is increasing, it stands to reason that they have greater skills to contribute to your company as well. People who attend degree programs start applying their learning to their jobs from the time they take their first classes. They don’t just start applying their knowledge once the degree is complete. You get higher quality people while they are pursuing their degrees.
But, what about the people who do leave?
Some people will leave once they get a degree. But have you really wasted your money? Obviously, you don’t want to let someone walk away with thousands of dollars of education on your dime. However, if structured properly, a good degree completion program provides mechanisms to recoup your investment should the employee leave. The worst case scenario is that you break even. A more probable scenario is that you break even and realize some of the benefits mentioned earlier.
Do you really want a workforce that your competitors wouldn’t hire?
A workforce that is developed only to meet minimum job requirements will produce minimal results. A workforce that is developed to their greatest potential will provide greater results.
You take pride in knowing that your competitors would love to get their hands on your products, services, or processes. So, why treat your workforce differently? After all, they are the ones responsible for your products, services, and processes.
A marketable workforce makes for a marketable company
GE is known for creating leaders who go on to lead other organizations. In doing so, GE has become a stronger, more viable company. Creating outstanding talent will always serve your interests. It will get you the best people, ensure that they are making the strongest contribution, and provide you with a pipeline of new people who want to help your organization succeed.
