Talent Investment - The Founder’s Secret Weapon

Hello again, founders! This week, I want to talk about something that’s absolutely crucial for long-term success—investing in your team early. I’m not just talking about salaries or bonuses; I mean strategic investment in your people functions. It’s the kind of thing that can feel like an expense in the short term but pays off massively in the long haul. Think of it as planting money trees!

Why Investing in People Early is Essential

I know it sounds simple, but investing in your team from the start can be a game-changer. A study by the Chartered Institute of Personnel and Development (CIPD) in the UK shows that businesses that invest in training and developing their employees experience higher productivity and innovation. And let’s be real—investors notice these things.

Here’s why it matters:

• Retention is Cheaper than Recruitment: The average cost per hire in the UK can be as much as ￡3,000, not to mention the time spent recruiting. It’s far more cost-effective to invest in your current team than to continually replace talent.
• Developing Skills for the Future: Your start-up's needs will evolve, and so should your team’s skillset. By investing in continuous learning, you’re future-proofing your workforce.
• Investors Love It: Investors don’t just want to see financial forecasts—they want to see that you’ve built a team that can grow with the business. A study by McKinsey found that companies with strong people functions outperformed others by 20% in terms of growth and profitability.

How to Start Investing in Your Team

1. Onboarding & Training A good onboarding programme is worth its weight in gold. Help your new hires hit the ground running with structured onboarding that integrates them into the team and culture quickly.
2. Employee Development Plans Give your team room to grow. Whether it’s leadership training or providing access to courses, ensuring your people have personal and professional development plans will keep them motivated and prepared for the company’s next phase.
3. Internal Mobility One of the best ways to retain top talent is to offer growth from within. Creating opportunities for your employees to move into different roles or departments is a strong indicator of a progressive, dynamic workplace.

Conclusion: By planting the seeds of people investment now, you’ll grow a team that not only performs but also stays with you for the long term. Future you will definitely be doing a happy dance—and your investors will too.