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6 Ways To Invest In Employees To Maximize Performance

Use these six methods to invest in employees and reap the rewards. Learn how investing in employees unlocks more revenue and higher performance.


By ActivTrak

4 employees in an office training where their company has decided to invest in employees

Investing in employees is more than just a nice gesture — it’s also a key driver of success. When people thrive at work, productivity goes up, voluntary turnover goes down and employee satisfaction peaks. 

Is your organization doing everything possible to make that happen? Let’s find out — keep reading for six of the most effective ways to support employees.

Why is investing in employees important?

It is no secret that employee experience plays a pivotal role in business success. But did you know investing in employees increases ROI? In a recent Gallup analysis, the most engaged employees were 23% more profitable than their disengaged peers. Turns out, supporting employees is one of the best ways to improve your bottom line. 

The most successful companies invest generously in employees — and then reap the rewards in the form of:

  • Higher revenue: Research shows that when employees thrive, companies triple their stock market value. Organizations with strong cultures also have double the revenue-per-employee compared with “typical” workplaces. One study even concluded companies can boost revenue as much as 50% by improving the employee experience. 
  • More loyalty: When people believe their employers care about their health and well-being, they’re 38% more engaged and 17% more likely to be working at the same place in one year. Employees who feel valued and supported will often go above and beyond to deliver exceptional results. 
  • Increased performance: Supporting your workforce doesn’t just increase productivity — it does so while reducing burnout. At companies on the 100 Best Workplaces list, employees are 70% more likely than their typical workplace counterparts to go the extra mile. Perhaps even more remarkably, 60% of them say they work in a psychologically and emotionally healthy environment.

How to invest in your employees

Here are six areas where investing in employees will benefit your overall business, both now and in the future.

1. Offer competitive compensation and benefits

While creating a positive work environment and investing in professional development are important, you won’t see results unless you first ensure people are compensated fairly. Salary and benefits are the most critical factors candidates consider when weighing job offers. 

When employees feel they’re fairly compensated for their skills and contributions, they’re more productive and engaged. Before you explore other investments, make sure your compensation packages are on par with your competitors — as it’ll cost you 30-150% of a current employee’s salary to find a strong replacement. By offering competitive compensation, you can retain your top-performing employees and be more enticing to future applicants.

2. Provide training and development opportunities

For people to thrive, they need to feel good about where their careers are heading. For that, professional development is key. Nine in ten employees say they would stay at a company longer if it simply invested in helping them learn new skills.

Whether you invest in on-the-job training programs or cover the cost of conferences, investing in employee development shows you’re committed to long-term success. It’s why companies that help people learn and grow experience a 34% higher retention rate than those that don't. Not only will training contribute to higher retention, but a more skilled workforce can also help to boost performance.

3. Actively support work-life balance

In the always-on, work-from-anywhere digital age, work-life balance can seem like a pipe dream. In reality, it’s essential to success. Employees who have a chance to recharge when not at work are 38% more likely to report a positive employee experience. But unfortunately, most leaders vastly overestimate employee well-being. While eight in ten employers say their workers are mentally healthy, only 65% of their employees agree.

Granted, you can’t give employees work-life balance. Each person needs to decide for themselves how they’ll achieve it. However, you can create an office culture that supports it. Encouraging people to take paid time off and testing the four-day workweek are all effective strategies for supporting work-life balance and preventing burnout that can negatively impact performance.

4. Use workforce analytics software

One of the best ways to increase employee engagement and improve performance? Measure day-to-day activities. This will help you understand where, when and how people do their best work — and what you should do to support it.

For example, workforce analytics software like ActivTrak provides the insights you need to identify early signs of burnout, distribute workloads fairly, eliminate distractions and improve workflows — all of which strengthen company culture and can help maximize employee performance.

5. Evaluate your workplace policies

Flexible work arrangements are highly valued among the workforce, with hybrid and remote roles attracting seven times more applicants than traditional in-person roles. In one survey, an overwhelming 79% of surveyed employees named it as the benefit most likely to impact job satisfaction — it beat mental health resources, developing new skills and even diversity and inclusion programs. In other words: Offering flexible work arrangements is one of the most effective ways to help improve the satisfaction of existing employees and recruit top talent. 

Some managers may be hesitant about offering these types of arrangements, but hybrid and remote workforce management software can help provide insights about how location effects performance. Using the software, managers can see who thrives in an office vs. a remote location, and they can adjust policies accordingly.

6. Support employee’s mental health

Supporting employees’ emotional well-being is more than just a best practice. It can also help you save money. Research shows every $1 spent on mental health services yields a $4 return on investment. More than two-thirds of surveyed workers want companies to help them manage stress, and many say it’s a key factor when deciding whether to accept or stay at a job. 

Investing in coaching and counseling is a highly effective way to support employees. More than half of companies with a strong coaching culture achieve higher revenues than their industry peers, and employees who receive coaching report more confidence, better communication and more effective problem-solving skills.

Invest in your employees with ActivTrak’s workforce analytics software

Investing in employees is the foundation for sustainable business success. By implementing the above strategies, you’ll create a thriving workplace culture that maximizes employee performance and retains top talent.

Not sure where to start? ActivTrak is here to help. Our workforce analytics platform provides deep insight into employee productivity and well-being. Use it to measure engagement, manage workloads and see where different teams work best. You can even rely on our virtual productivity coach to learn which investments offer the most ROI.
Request a demo to see how it can help you understand where and how to invest in employees to maximize performance.

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