EMPLOYEE INVESTMENT: A LEADERSHIP ADVANTAGE

 Investing in employees’ growth is essential for organisational longevity, argues LINUS OKORIE

In an age where the war for talent intensifies daily, organizations often face the choice between investing in developing employees and continually seeking talent externally. The costs, both tangible and intangible, of high turnover are often underestimated, with many organizations not realizing how much value lies within their current workforce. The truth is that business leaders should know that investing in employees’ growth is not just good for retention—it is essential for organizational longevity.

A study by LinkedIn reveals that 94% of employees would stay longer if companies invested in their careers. This data-driven research shows that employees’ motivation goes beyond a steady paycheck. They crave progress, purpose, and the sense that their company sees their potential. Every employee who leaves due to a lack of growth opportunities carries away a part of the organization’s investment in their training, experience, and relationship building. The Centre for American Progress estimates that replacing a highly trained employee can cost up to 213% of their annual salary. This is avoidable and more than just a financial burden; it is a significant disruption to productivity, morale, and continuity within the team.

In Nigeria, where job stability and financial security are paramount, many employers assume that steady income is the primary driver of employee loyalty. This is a costly assumption because recent research and workplace trends reveal that employees value more than just a paycheck. Professionals, especially in sectors with dynamic sectors like tech, consulting, and manufacturing, increasingly seek roles that offer growth potential, organizational support, and a strong company ethos. The challenge, though, is that companies often lack the infrastructure to develop such environments consistently, which can make employees feel the only way up is out.

The challenge lies in the fact that many organizations lack the infrastructure to foster such environments, leaving employees to feel that the only way to advance is by moving elsewhere. While financial security remains essential, a growing segment of the workforce is prioritizing roles that offer personal fulfilment and opportunities for development, staying loyal to companies that invest in their growth and appreciate their contributions. Organizations that overlook this often face high turnover and the ongoing expense of recruiting new talent. Truthfully, the resources that could be better invested in internal growth and employee engagement.

The World Economic Forum (WEF) projects that 85 million jobs may go unfilled globally by 2025 due to skill shortages. While this figure points to a global issue, Nigerian businesses are at a particular disadvantage: the local market is young, ambitious, and highly mobile. If Nigerian companies continue to view employees as transient contributors rather than long-term partners, they risk losing out to both national and international competitors who are actively courting and cultivating talent.

Sub-Saharan Africa is facing low literacy rates, a key factor behind the shortage of skilled workers available to meet labour market demands. As skilled labour becomes scarce, companies that invest in their teams now will not only survive but also thrive. They will have the expertise needed to take on new opportunities while also demonstrating their dedication to Nigeria’s economic and social development.

We can learn from Nike’s investment in internal growth using the case study of Elliot Hill, who started as an intern, fresh from Ohio University, and over 32 years, worked his way up to becoming the CEO. Hill’s journey was not just a fluke or a story of personal ambition, but a reflection of Nike’s commitment to talent development. Hill demonstrated this brand loyalty first-hand. No doubt, he faced challenges along the way and likely had opportunities to leave for higher paychecks or new prospects. Yet he chose to stay, dedicated to a company that invested in him and gave him space to grow.

This underscores a fundamental truth: when employees feel that their growth aligns with the company’s vision, loyalty follows naturally. Nike provided Hill with progressive responsibility, mentorship, and development resources that allowed him to evolve. This model does not just build employee retention—it cultivates deeply invested leaders. Research from Gallup reveals that engaged employees are 87% less likely to leave their organizations, further highlighting the link between opportunity, engagement, and retention.

For Nigerian businesses, this approach can be transformative. Rather than seeing employees as short-term assets, companies can leverage loyalty as a competitive edge by embedding growth within the organization’s DNA. Investing in internal development offers numerous benefits: lower turnover costs, a highly skilled workforce, and a strong brand reputation.

Moreover, when employees witness their colleagues progressing, it instils a sense of hope and motivation that is essential for a positive organizational culture. Companies that prioritize internal growth retain intellectual capital and drive innovation because they are not just attracting talent—they are growing it.

 Here are key actions for leaders looking to create a more engaged, loyal, and skilled workforce:

One, Structured Career Pathways: Offer employees clear, well-defined pathways for advancement. When team members know they can grow with the company, they are more likely to invest their energy into achieving collective goals. Structured development programs ensure that employees understand how they can advance, motivating them to perform at their best.

Two, Mentorship Programs: Pair newer or emerging talents with seasoned professionals who can offer guidance, support, and insights. This allows for knowledge transfer, deeper engagement, and relationship building within the company, fostering a sense of belonging and loyalty.

Three, Continuous Learning Opportunities: In an era of rapid change, employees must be able to learn and adapt quickly. Encourage skills training, certifications, and leadership development workshops. Not only does this upskilling keep teams agile, but it also demonstrates the company’s commitment to helping employees grow personally and professionally.

Four, Clear, Engaging Communication: Leaders must consistently communicate the company’s mission, vision, and goals. Linking individual roles to the organization’s broader purpose helps employees see how their contributions matter. Sharing the vision openly gives employees a clear picture of where they fit in and how they can grow alongside the business.

Five, Recognize and Reward Growth: Reinforce a growth culture by recognizing and rewarding employees’ efforts, milestones, and achievements. Simple recognition—whether through awards, promotions, or public acknowledgment—reinforces the value placed on hard work and ambition.

In today’s talent-driven economy, retaining top talent means recognizing their value beyond their current role. For Nigerian organizations, the key to sustainable growth is already within their walls. By fostering an environment of continuous growth, opportunity, and engagement, you can transform your workforce into a loyal, skilled, and competitive advantage that fuels long-term success. Let this be a call to business leaders: nurture your employees, align them with your vision, and show them that their future is here. In doing so, you are building a legacy, and that makes you a legacy-driven leader.

 Okorie MFR is a leadership development expert spanning 30 years in the research, teaching and coaching of leadership in Africa and across the world. He is the CEO of the GOTNI Leadership Centre.