To maintain a competitive edge and attract and keep top talent in business, cultivating a strong culture of engaged employees is not a nice-to-have but a must-have. With phenomena like quiet quitting, which has affected 50% of the U.S. workforce, and the Great Resignation, it’s clear investing in employees by building a strong company culture is crucial for engagement and retention. We’ll explore the benefits of investing in employees and actionable steps you can implement while managing your cash flow needs.

The Benefits of Investing in Your Employees 

From engagement to retention, investing in your company culture and employees yields many positive outcomes:

  • Increased Employee Engagement: Happy and engaged employees are more productive and motivated, positively contributing to your business’s success. According to a Deloitte study, 83% of executives said having engaged employees who are satisfied and feel valued “substantially contributes to company success.” 
  • Improved Retention: With the high cost of turnover, creating an environment that fosters loyalty is highly valuable. In addition to negatively affecting productivity and morale, reports show it costs one to two times an employee’s salary to replace them due to turnover, with even higher costs at the management and C-suite level.
  • Recruitment Advantage: A strong company culture attracts top talent, giving businesses a competitive advantage in hiring. In one study, 46% of candidates said company culture was a determining factor when choosing a company, with 35% saying they’d pass on an otherwise great job offer if they didn’t align with the company culture.

5 Ways to Invest in Your Employees

There are several ways to invest in your employees, and higher salaries aren’t always the answer. According to one study, 60% of employees said they’d settle for half the pay for a job they loved, citing factors such as a strong manager-employee relationship and positive company culture. 

Still, finding the capital to invest in new programs or benefits can be challenging. Alternative lending can be a solution to helping you achieve your company culture and employee engagement goals. Here are five ways you can use alternative financing to invest in your employees:

  • Clear Values, Vision, and Communication: A strong culture is built on clear values and a vision everyone understands and embraces, which helps employees feel more connected and motivated. Involving your employees in shaping these components further fosters mutual understanding, belonging, and buy-in. Open communication is also crucial to keep employees informed and provide a platform for their voices to be heard. Alternative lending can help you invest in branding services or team-building workshops that bring your company’s values to life. 
  • Professional Development and Training: Investing in your employees’ professional growth through tuition reimbursement and training enhances their potential and shows you value their progression at the company. Alternative lending can help fund these opportunities, giving your employees the resources they need to succeed.
  • Flexible Work Arrangements: Flexibility, such as hybrid work schedules and remote options, has become a top priority for employees, especially in the post-pandemic world. Stats show it significantly increases satisfaction, work-life balance, and retention. Alternative lending options can help you access funds to invest in the technology and equipment required to facilitate a smooth transition and continued productivity.
  • Health and Wellness Programs: Demonstrating your commitment to your employees’ well-being will lead to a happier, healthier, and more productive workforce. Alternative lending can help you launch or expand programs related to wellness, such as gym memberships and mental health resources.
  • Inclusivity and Diversity: Creating a welcoming environment for all employees is not only the right thing to do but also beneficial for business, leading to unique perspectives and innovative solutions. Consider updating your policies and hiring practices and using alternative lending to fund initiatives like diversity training.

Investing in your employees and company culture will improve employee satisfaction and retention as well as enhance overall business performance. Alternative lending can help you build an environment that leads to a more productive, engaged, and loyal workforce, equaling long-term success for your business. Contact us if you’d like to learn more about other ways to use alternative lending to support your business.