CEOs can Maximize Tax Cuts By Investing in Employee Development

Bonuses, rising wages, stock buybacks and capital investment projects designed to create jobs and increase productivity – these are just some of the ways that the nation’s largest corporations are allocating their recent tax breaks. But one area that’s been largely overlooked is human capital – specifically investing in workforce training and reskilling to prepare employees for the future of work.

A Changing Jobs Economy Makes Employee Development a Necessity

In fact, a recent op-ed in the New York Times argues that one of the best investments companies can make with their tax savings is in the development and continuing education of employees:

“The need to invest in people has never been more pressing. Technology is both destroying and creating jobs, and with the advent of artificial intelligence and ever more powerful computational capacity to process almost unimaginably large data sets from millions of interconnected devices, the pace of creative destruction is likely to accelerate.”

Workers WANT More Employee Development Opportunities

Research shows that when a company invests in employee development and skills training, employees believe that the organization values them. This, in turn, increases their willingness to work hard, and it also may enhance the organization’s productivity – creating a relationship where employees work harder because they have a greater sense of job satisfaction and commitment to the organization. You can read more about this research here and here.

Additionally, as more Millennials enter the workforce the old incentive structures are falling away. For the first time ever, employees are prioritizing increased employee development and growth opportunities. In fact, 87% of Millennials rate “professional or career growth and development opportunities” as important to them in a job.

“Millennials don’t just want to spend their time earning a paycheck; they want to invest time acquiring the skills and knowledge they need to grow both personally and professionally.” – Fortune, March 2015

Core to all of this is the notion of value. Feeling valued by others is one of the most central needs we have as human beings. This basic human need extends beyond personal relationship into the workplace. Employees want to feel valued and, when they do, they exhibit better job performance and loyalty.

Demonstrate Your Org. Values Employees Through Effective Training

One of the best ways to communicate that an organization values its employees is to invest in powerful, effective training.

Learning has evolved from staid in-person seminars and printed training manuals, to interactive, adaptive, robust environments that marry all we know about how people learn with the best of emerging technology. AI, machine learning and natural language processing, combined with evolutions in the understanding of human learning (at the cognitive and neurobiological levels), are making employee development more efficient and effective than ever before. And the resulting learning platforms are able deliver learning in such a manner that the employee not only takes away new skills and knowledge, but is also imbued with higher levels of confidence and perceived value.

For example, through our personalized, adaptive learning platform and microlearning approach, our clients have experienced dramatic gains in knowledge acquisition (up to 38%) and knowledge application (up to 55% fewer on the job errors post training). They’ve also witnessed the impacts of a more confident workforce such as improved productivity, morale and follow-through. And all of this has left a lasting impression on employees, with many reporting: “this is the best computer-based training to date.”

As the opinion writer put it in his New York Times op-ed:

“The tax cut has given companies an opportunity to invest in the future. So, to America’s chief executives: Don’t spend it all on buybacks and bonuses. Invest in plants, equipment and research. But the best investment you can make with that money is in your people.”

A company is only as strong as its people. Are you ready to see how Fulcrum Labs can help your organization reinvest its tax savings into high-impact employee development programs? Contact us directly and lets set a time to connect!