Professional development is not only an effective skill-building tool, but it’s also a growing trend among businesses. In fact, research indicates that companies in the U.S. spend over $164 billion annually on employee learning. Needless to say, professional development takes valuable financial resources and it may be worth it to get a working capital loan.
The key is to make sure your return on investment is worth the cost. Here are three ways professional development does add value to your business, both in the near-term and the long-term:
Expand Your Company's Expertise
When you first started your small business, you probably didn’t have the working capital to hire someone (or anyone) for all of the tasks that needed to be done. As you continue to grow, however, you may find that professional development programs can expand your team’s expertise, help them do their jobs better, or take on new responsibilities.
You may have loyal, hard-working employees who are ready for a new challenge. Rather than hiring someone new and risking a potentially bad culture fit, promoting internally and providing leadership development training can develop valuable assets for your company.
Attract The Best Talent
When it is time to hire from the outside, having a professional development plan already implemented in your company can help attract top-quality candidates for the position. The best talent will be more attracted to a business that gives them opportunities to continue their own professional growth. Using a working capital loan to finance such training can be an effective way to grow your business with new hires.
Reduce Employee Turnover
Research shows that employee development programs can also help retain your team. When considering the return on investment for a course, don’t just think about how those new skills will benefit the business itself. Also think about the cost of losing a staff member, replacing them, and training a new individual. That process can waste a lot of time and money, setting your company back financially and hindering you in reaching your business goals.
The Bottom Line
A working capital loan can put you on track to be a leader in your industry and build your reputation as a great employer.