Learning & Development, Recruiting

The Growing Importance of People Development as Part of the Employer Value Proposition

There was a time when employers’ primary value proposition to potential employees was financial compensation: A good hourly wage, a strong salary, and/or a lucrative bonus structure was often all the motivation many workers needed to apply for a job.

But, as the importance (and expense) of other lifestyle needs has grown, benefits like health, dental insurance, and others have increased. In a way, these other benefits are almost akin to financial compensation in that there is an identifiable financial benefit associated with them. An employer-provided insurance plan may offset $1,500 in monthly costs for an employee, for example. That’s a real and concrete financial benefit.

The Value of L&D

Not all benefits are so easily quantifiable in dollars and cents. That’s especially true of the learning and development (L&D) opportunities employees are increasingly expecting from their employers. In addition to a wage and benefits, today’s employees also increasingly expect to be able to learn valuable new skills and gain useful experience on the job. These skills and experiences can set employees up for future advancement within the company or for a new and more lucrative role in another organization.

Rethinking Training Offerings

Some employers may already have desirable L&D opportunities for employees and simply need to effectively communicate and market those opportunities to potential employees. Others may need to rethink their L&D culture and seek opportunities for improvement.

From a practical standpoint, additional training isn’t just a gimmick to attract workers; it’s also an obvious way an employer can increase its staff’s value and productivity.

For potential employees, wages and benefits have been traditional indicators of how desirable a job seems, but employees are increasingly looking for more than just financial benefits. They want experiential and development opportunities, as well. These opportunities can be a surprising draw for prospective job candidates.

Lin Grensing-Pophal is a Contributing Editor at HR Daily Advisor.

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