Techgue | The career development program is one form of the company's efforts to retain its HR talent. There are many career development benefits that companies can get. In fact, these benefits can have a direct impact on the company's business activities.
Considering the important role of career development programs, it is not surprising that companies pay serious attention to the implementation process. That way, companies can get optimal benefits from the program.
Understanding Career Development
Before discussing the benefits of career development, it's a good idea to first understand its meaning. Career development is a person's effort to improve their abilities as part of the career plan they have prepared.
Also Read : 5 Differences between Careers and Jobs You Must Know
In practice, career development is often carried out with special strategies and plans. With a thorough strategy and planning, companies can get benefits in accordance with the desired targets and expectations.
In practice, career development within a company is divided into 3 phases, namely:
1. Digestive Phase
This phase is the initial stage in the career development process. At this stage, the company carries out employee career planning with the company's needs so that there is harmony. That way, the company can make an assessment regarding employee strengths and weaknesses in the process of carrying out tasks.
2. Briefing Phase
The second phase is direction, which is the company's real effort to help direct employees' careers. This direction can be carried out through information or counseling services.
3. Development Phase
The third phase is development. At this level, the company will strive to develop employee capabilities with consideration of future positions. There are several policies that companies can implement in this development phase, including providing scholarships, position rotation, training, mentoring, and so on.
Benefits of Career Development for Companies
So, what kind of benefits can companies get from implementing career development programs for employees? There are 7 main benefits that companies can obtain, namely:
1. Encourage Productivity
Companies can run career development programs using various methods. For example, through training activities, promotions, salary increases, and so on. Implementing a proper career development program can significantly increase employee productivity.
Employees work harder in the hope of getting a promotion. In addition, employees have the ability to utilize their skills more effectively and efficiently after participating in the training program.
Career development programs also help companies recognize the passion of each employee. This knowledge can then be used by the company by placing employees according to their respective passions and skills. That way, employees can work more productively.
2. Increase Job Satisfaction
The benefits of career development within the company can also encourage employee job satisfaction. Job satisfaction is an important parameter that measures employee comfort levels.
The level of employee job satisfaction is influenced by various factors, such as work achievement, type of work, work environment, company support, and so on. Companies can also run career development programs by paying attention to these factors.
3. Reduce Turnover
Employee turnover in a company is a normal phenomenon. If it occurs in a reasonable period, turnover provides benefits for the company. However, a turnover rate that is too high has the potential to cause losses for the company. Employee productivity and morale can decrease.
High turnover also has the potential to increase company expenses. These expenses cover various aspects, including the costs of employee recruitment, onboarding, training, and other expenses related to employee needs.
The benefits of career development in reducing employee turnover are closely related to the level of job satisfaction. Career development makes employees feel cared for by the company. They will not necessarily find a similar situation when they choose to move to another place of work.
4. Attract Highly Talented Employees
Companies can also benefit from career development programs in attracting talented employees. Talented employees are quality human resources and are valuable company assets. Its existence has a huge impact on the company's business activities.
The role of a talented employee in a company is different when compared to other human resources. They will be projected to become leaders through various career development programs. Therefore, it is not surprising that the presence of talented employees has a big influence on the company's future.
5. Creating a Positive Work Culture
Having career development within the company can also provide benefits in creating a positive work culture. There are many benefits that companies can get through creating a positive work culture. These benefits include:
- Enjoyable work atmosphere. Employees can work productively. The level of competition among employees is also healthy. That way, conflicts between each employee can be minimized.
- Open and transparent communication. A positive work culture encourages employees to be open. They have high trust in the company in handling various problems and challenges.
- Solid work team. The existence of a positive work culture makes it easier for companies to create a solid work team. This happens because employees have an attitude of mutual trust and support for each other.
6. Increase company income
The next benefit that companies can experience from a career development program is the opportunity to earn higher income. This situation can occur because employees have the ability to work more effectively and efficiently.
At the same time, companies also have the opportunity to reduce unnecessary expenses. An example is expenses related to turnover.
The Society for Human Resource Management (SHRM) revealed how huge these costs are. Expenditures for the direct employee replacement process range between 50-60% of the employee's annual salary. Meanwhile, the total cost of replacement can reach 90-200% of annual salary.
7. Building Employer Branding
Lastly, companies can gain career development benefits in the form of increased employer branding. Employer branding is closely related to the company's image in the eyes of job seekers. In their eyes, a company with good employer branding is a comfortable place to work.
Having strong employer branding can encourage companies to attract high talent. In the long term, employer branding can have a positive impact on the company's overall business operations.
So, those are 7 benefits of career development for companies that are interesting for you to know. Employees can also get benefits that are no less great. They become more confident, get guaranteed welfare, increase participation, and increase relationships.