Investing in the people who work with you increases your ROI and profitability.
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Businesses cannot afford to be complacent in a competitive economy. The latest cutting-edge technology and innovative products are no longer enough to measure a brand’s success. The talent within an organization serves as a key indicator of market performance, reflecting factors such as its skill set, retention, sense of purpose, and overall work environment.
Forward-thinking leaders like the founders of The Hush Collaborative recognize that the workforce is not just a cost center, but a powerful driver of profitability and growth. There is a critical relationship between investing in human capital and improving profits, and smart companies are turning their employees into their most valuable assets.
“Employee experience is the most important indicator of customer experience,” said Lauren Buckley, co-founder of Hush Collaborative. “Customer experience is the number one metric that drives profits. What we are shocked about is how it continues to be ignored as leaders talk about how they need to be data-driven. There’s a huge cannon of data that seems to be on the rise, and that means employee experience is directly tied to profits (building better strategies). They are often considered sunk costs; they are investments.
Lauren Buckley, co-founder of Hush Collaborative
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Companies that strategically develop their employees often see a direct correlation between their human capital efforts and profitability. On average, brands that invest in comprehensive training programs have 24% higher profit margins than brands that don’t prioritize employee development. Employees with the right skills and motivation contribute more and foster the innovation and adaptability that is essential to staying competitive in today’s market.
Buckley, along with Allie Fendrick and Kate Meehan, will improve brand and employee experience metrics and achieve strategic goals to create richer, more effective ways of working that benefit everyone. We launched Hush Collaborative to help organizations create together.
The origin of Hush was born after Buckley was physically assaulted at work. Witnesses did not intervene. She had to advocate for herself in the human resources department. Unfortunately for her, the company did not have a zero-tolerance policy for violence. This situation led her to think about how brands can operate from a perspective that views employees not as essential, but as a resource and an investment.
The co-founders noticed a common theme: 90% of growth strategies fail during the execution stage. As they pivoted their approach, they focused on the human element in the workplace.
“When you think about the 90% and then the 70% who are trying to fix the 90%, it’s pretty hard to argue that there’s no problem,” she said. “But when we talk about it, we talk about leadership first and foremost. A lot of leaders use short-term thinking. It’s about what’s going to be a quick fix, what’s going to move quickly and get things done. What about technology solutions that don’t involve the tedious human resources part? What’s the solution? People are messy. Businesses need to change to grow. That’s the fundamental problem. That’s why our solutions have a true focus on starting people first, and the way we do it is by applying community organizing or organizing principles to strategy and system design. is.”
The economic case for investing in talent
Investing in human capital may seem expensive at first, but the return on investment (ROI) proves otherwise.
Improved holding power
High turnover is costly due to costs associated with hiring, onboarding, and lost productivity. By investing in employee satisfaction, training, and development, companies create environments that foster loyalty and reduce turnover-related costs.
Increase revenue and profit margins
Well-trained employees are more efficient and deliver high-quality work. Research shows that companies with strong employee development programs often outperform their competitors in profitability and revenue growth.
Hush Collaborative founders (left to right) Lauren Buckley, Kate Meehan, and Allie Fendrick.
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Key areas of investment in human capital
Organizations need to be strategic about where and how they invest in their employees. The most effective human capital investments include:
• Training and skills development
• Commitment to employee well-being and engagement
• Competitive compensation and benefits
• Career growth opportunities
The tangible benefits of investing in people
The benefits of investing in human capital are tangible and measurable. Companies that prioritize their employees often report:
Increase retention rates Increase productivity and performance Increase customer satisfaction Foster innovation
A strategic approach to human capital investment
To maximize the ROI of human capital investments, companies must align these efforts with their strategic goals. Below are some approaches.
• Align development with business goals: Training programs should focus on skills that directly impact the organization’s goals.
• Build a culture of continuous learning: Encouraging employees to embrace lifelong learning ensures your workforce evolves to meet industry demands.
• Leverage technology for personalized development: Digital platforms can provide customized training and increase effectiveness.
• Measuring human capital metrics: Track metrics like employee engagement, retention, and training ROI to ensure your investments are data-driven and impactful.
“There has to be rules of engagement that everyone agrees on, and at least somebody, as I often say, can’t be the leader here. Holding the group accountable to the rules of engagement, imposing obligations. ‘They need to be accountable for their decision-making protocols,’ concludes Buckley. “It’s the very simple, small things that can help organizations accelerate this quickly. Some people feel like it’s too restrictive or that it’s handcuffing people’s creativity. It just reinforces the idea that leaders at the top don’t want to take responsibility for the organization’s values or their own actions, because it gives more people at the bottom a sense of security.”
