Trends

 

03 31 2014

03 31 2014

Subpar Employee Development Programs Lead to Business Challenges

Running a successful business is about more than revenue, statistics and sales, as countless advisors have been warning of for years. Now, a recent study has confirmed these thoughts, bringing to light issues many leaders of companies large and small alike have faced over the years. Namely, the study by CEB, a leading advisory firm, found that neglecting high performing employees may result in both financial and human consequences. When employees feel underappreciated, the study stated, businesses run the risk of losing top performers to competitors.

Employee resources placed in the wrong hands

As has been confirmed by several major evaluations prior to this study, it is far less expensive to train and lead talent development programs with existing employees than to launch a search for new workers. Each year, top earning companies spend an average of $3 million on leadership, training and development initiatives, which in itself is hardly a misguided practice. However, as the study points out, a significant number of organizations apply these resources to individuals who are not best suited for these programs.

“Too often resources, training and career opportunities are directed at employees who lack the aspiration, engagement or ability to be effective at the next level,” Eugene Burke, chief science and analytics officer at CEB said in a statement. “This misidentification is preventing those with the strongest potential from reaching senior roles and could restrict an organization’s future productivity, innovation and performance.”

Burke further said that as a result, there is increasing pressure placed on businesses to recognize employee talent in order to improve return on employee investment. In a rush to stay on track with the trend, many business leaders have jumped on board, albeit without the most appropriate level of thought applied to creating a comprehensive and effective employee development initiative.

Improving employee performance without losing company talent

While employee engagement and education programs can improve retention rates and significantly increase tenure at an organization, when the wrong workers are invited to take part in these programs, the results can instead have little effect on a company. Based on a decade’s worth of research sampling for 6.6 million people, CEB recommended companies take the following into consideration when building an employee improvement program:

  • Demand commitment: Employees who sign up for engagement and training opportunities should be asked to commit to the program for a specific amount of time. This will decrease the risk of a worker leaving a business suddenly and without warning – this method ingrains in workers a sense of dedication to their position.
  • Reevaluate and measure potential in a new way: Although manager evaluations are valuable, due to the inherently subjective nature of the practice, those gauging talent and readiness for a program need to focus on more than just a good word from a colleague. Instead, workers ought to be evaluated using reliable and subjective methods such as sales figures and business success rates.

Despite the fact that around $3 million is poured into leadership and development programs each year, approximately 55 percent of those who partake in enrichment programs eventually leave the company within five years, marking the importance of a well designed training program.

In order to implement such programs and increase hiring in general, however, many companies need increased working capital to follow through. These endeavors can be costly and may take months to implement, making it imperative that companies have enough cash on hand to manage programs in an efficient and meaningful way. For those looking to explore their financial options and the possibilities of retaining current employees, talking to National Funding can help.

Find Out How Much Funding You Qualify For

Fields marked with an * are required
By clicking this button I agree to all terms and conditions.

Terms & Conditions

General Acceptance

Any applications submitted electronically shall have the same force and effect as if the application bore an inked original signature(s). The above information, together with any accompanying financial statements, schedules, or other materials, is submitted for the purpose of obtaining credit and is warranted to be true, correct, and complete.

 

US Patriot Act:

To help the United States Government fight terrorism and money laundering, Federal law requires us to obtain, verify, and record information that identifies each person that opens an account. What this means for you: when you open an account, we will ask for your name, a street address, date of birth, and an identification number, such as a Social Security number, that Federal law requires us to obtain. We may also ask to see your driver's license or other identifying documents that will allow us to identify you.

 

For Loan/Merchant Services:

The Merchant and Owner(s)/Officer(s) identified in the application (individually, an “Applicant”) each represents, acknowledges and agrees that (1) all information and documents provided to National Funding, Inc. (“NF”) including credit card processor statements are true, accurate and complete, (2) Applicant will immediately notify NF of any change in such information or financial condition, (3) Applicant authorizes NF to disclose all information and documents that NF may obtain including credit reports to other persons or entities (collectively, “Assignees”) that may be involved with or acquire commercial loans having daily repayment features and/or Merchant Cash Advance transactions, including without limitation the application therefor (collectively, “Transactions”) and each Assignee is authorized to use such information and documents, and share such information and documents with other Assignees, in connection with potential Transactions, (4) each Assignee will rely upon the accuracy and completeness of such information and documents, (5) NF, Assignees, and each of their representatives, successors, assigns and designees (collectively, “Recipients”) are authorized to request and receive any investigative reports, credit reports, statements from creditors or financial institutions, verification of information, or any other information that a Recipient deems necessary, (6) Applicant waives and releases any claims against Recipients and any information-providers arising from any act or omission relating to the requesting, receiving or release of information, and (7) each Owner/Officer represents that he or she is authorized to sign this form on behalf of Merchant.(8) I consent to receive direct mail, faxes, and e-mails sent by National Funding and its affiliates for the purposes of transmitting account updates, requests for information and notices, and (9) this request is for business and not for consumer purposes.

 

For Equipment Services:

I hereby certify: (1) the information provided is true and correct, (2) you are hereby authorized to investigate all bank, credit, and trade references, and said references are hereby authorized to release any requested information to you or your nominee, (3) such authorization shall extend to obtaining personal credit profile in considering this application and subsequently for the purposes of update, renewal or extension of such credit or additional credit and for reviewing or collecting the resulting account, (4) this information may be transmitted by us to you and by you to underwriter(s) for the purpose of granting me credit, either electronically or manually, and that by submitting this application, I take full responsibility for transmission thereof, (5) I am over 18 years of age, (6) I acknowledge my rights under the Fair Credit Reporting Act, (7) I consent to receive direct mail, faxes, and e-mails sent by National Funding and its affiliates for the purposes of transmitting account updates, requests for information and notices, and (8) this request is for business and not for consumer purposes.

The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status or age (provided the applicant has the capacity to enter into the binding contract); because all or part of the applicant’s income derives from any public assistance program; or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. If for any reason your application for business credit is denied, you have the right to a written statement of the specific reasons for the denial. To obtain the statement, please write to National Funding Inc., 9820 Towne Centre Drive, San Diego, California 92121.  Funding amount and credit approval is subject to a full credit profile review.