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Investing in Human Resources

25 November 2020

Investing in Human Resources

Is it worth investing in human resources? Well, as a snapshot answer to that question we offer this anecdotal exchange between a finance manager and a chief exec:

CFO asks CEO:

What happens if we invest in developing our people and they leave us?

CEO replies:

What happens if we don’t, and they stay?

This is a pithy answer to a fundamental question, and one we firmly believe in. But in the spirit of positive thinking, let’s ask another question: what happens if we invest in our people and they do stay?

In our article Benefits of Employee Training and Development” we discuss this topic in more detail, including one of the key questions in performance based management. How do you optimize the benefits of training and development, and therefore the resources used to improve performance?

So what are the benefits of investing in human resources?
There are numerous benefits to be had from this kind of investment, both to organisations and the people they employ. These include:


  • The acquisition of new skills and knowledge.
  • Enhancing or updating existing skills and knowledge, helping people to further improve proven strengths.
  • Addressing weaknesses or putting mechanisms in place to address or compensate for these.
  • Improvements in well-being, engagement, confidence, capability and competence.
  • Committed, engaged personnel are much more likely to go that ‘extra mile’ for their colleagues and for the organisation’s customers.
  • Encouraging employees to feel supported and enabled in their work.
  • Putting learning into practice where it can do the most good – in the workplace.
  • Using learning to improve performance at work.
  • Sharing learning throughout the workplace, to enhance team performance.
  • Improving performance throughout the whole organisation through dissemination of information, ideas and networking.
  • Greater commitment to the organisation.
  • Less turnover of personnel; less expenditure on recruitment and less time/expense spent inducting and training new entrants.
Investing in human resources with PERFORM

The article is part of our series on How to Motivate Employees to PERFORM. Knowing how to motivate employees is one of the most important aspects of a manager’s job.

But as important is the need to manage the factors that contribute to that motivation, and to create the conditions for people to perform and realise their potential.

Our tool to help you achieve these management skills is the Apex PERFORM model. It stands for:

P – Potential
E – Expertise
R – Results
F – Focus
O – Opportunities
R – Resources
M – Motivation

Blog Content: Most blog pages on this site are from sponsored or guest contributors. Although we may receive payment for these, all posts are vetted to ensure they meet our editorial standards and offer value for our readers.
>> Return to the Managing Performance Knowledge Hub

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