6 reasons why your company does not believe in developing its people

CFO asks: "What happens if we invest in developing our people & then they leave us?"

CEO: "What happens if we don't, and they stay?"

Many people have read and shared this conversation between the CEO and CFO before. Well, what these people didn't know is that the conversation didn't end there.

CFO: "Replace them when they can no longer perform up to expectation."

Whether to invest in training depends on the management philosophy of the company. Inevitably, there will be companies who does not believe in investing in its people. So what are the reasons why companies are not doing so?

1. The company does not recognizes the need to train. Why do companies need to train its people when things are moving and the company is doing well?

2. Difficulty in identifying training needs. What are the areas that requires training?

3. Training incurs cost. Keep cost low, so that the company can be more profitable.

4. Why train when companies can hire?

4. Employees who are trained expect higher compensation. Why pay to train and increase the employees' compensation?

5. No visible return on investment. There must be some form of measurable return on this investment, for example, higher productivity.

6. Employees come and go. No reason why companies would train for their competitors.

Maybe some companies do not intend or expect to keep their employees for long. Is the lack of training one of the reasons you are leaving your company? Let me know.

*Side note: Dear HR, are you able to convince your boss?

Are you paid enough? How much is the 'right' salary?

No one ever complains that he is being paid too much cause no one ever felt that he is paid more than what he should be getting. But how much is the 'right' amount of salary for you?

Qualification

This is most obvious. The qualification requirements on job advertisement gives you an estimation of how much the company is willing to pay anyone to do that job. If you have a college degree but choose to accept a job for 'O' level graduates, then accept the fact that they are only going to pay you so much. OPEN your eyes and look at the job requirements, it's an indication of your salary package.

Experience

You are disappointed with your increment (if any). But how much more should you be asking for? There will come a day when you reached the maximum amount that the company is willing to pay for the job that you are doing and would rather hire someone new to replace you.

10 years of experience does not make you better than someone with 2 years experience. Doing the same thing over and over again for the past 10 years does not increase your value as an employee. Rethink about the value of the job that you are doing. If you feel that you can achieve much more and the company is not giving you the opportunity, then maybe it's time to move on.

Know what you are looking for. Salary comes NATURALLY as you increase your own VALUE.

Interview

You do know that your interview affects your salary package right? If you don't realise, yes it does. Companies have a budget that they are WILLING and ABLE to pay anyone who can show that they can do the job. That 1 hour interview is your only chance to show that you are worth it. That accounts for the difference between you and your colleagues' salary packages.

Job Scope

Lastly, do you know how the company decides how much to pay you? Different job pays differently.

Now, there are two vacancies available. The janitor and general manager role. If the same person applied for both, he will be offered different salary package for the 2 different positions. Why? It's because generally the company is going to pay you depending on the JOB, not the individual. That's why a janitor will not be paid $5,000 a month no matter how outstanding the person is.

If you joined the same company but different department as your classmate (both with same qualification and no working experience), probably you will have different salary packages. The reason is the difference in the JOB SCOPE. Every job has it's own duties and responsibilities and depending on the difficulty of the job, companies pay differently.

Do you know what job pays well in Singapore?

Reason why SME cannot find Singaporeans

Let's be frank. Are there enough positions for Singaporeans? Yes, there are. Are there enough Singaporeans who are willing to work? Yes, there are. So why is it that Singaporeans are saying they can't find a job and SME claiming that they are unable to hire Singaporeans? What's happening?

Singaporeans Expectation (working in an SME)

1. Salary - Come on, don't expect me to work without paying me enough. Well, even if you do pay me 'enough', my value do increase, and my perception of 'enough' changes over time. Please keep up with me.

2. Time - I do need some work-life balance. When i say work-life balance, I mean after work is my personal time.

3. Opportunities - I had been working for a year now. Shouldn't you show some appreciation? Like maybe a promotion or something?

4. Job Scope - I believe my peers don't work as much or as hard as I do. I practically cover everything in the department. You want me to do this and do that? What exactly do you want me to do?

5. Environment - Work, work and work. It's not productive you know?

6. Benefits - I heard of many benefits that others are getting. Like company retreat, D&D, activities, leave, bonus, good pantry. It seems that I don't have much benefits here. If you can just reconsider how you are going to treat your staffs, it may do both of us some good.

Conclusion: At the end of the day, I think I would prefer a MNC. At least, it meets some of my needs.

Employers Expectation (SME)

1. Salary - I paid you this amount, you agreed. So you expect to be paid more for doing the same work? Be reasonable. Your pay change when you can show more value.

2. Time - When you work, you are supposed to get things done. Why are you knocking off without getting it completed?

3. Opportunities - Show me your worth. Show me that you can provide me with higher value before we talk about giving you opportunities.

4. Job Scope - I believe these are PART of your responsibilities. What gives you the impression that these are not? I need it done by 10am tomorrow morning.

5. Environment - Of course you are hired to work. So what environment are you looking forward to?

6. Benefits - According to the Singapore law, you are only entitled to 7 days of annual leave. Will you please be contented that I am giving you 14 days? What more do you want?

Conclusion: Well, I can hire more foreigners to replace the Singaporeans. They are probably more willing to work than you.

*What do you think? Do you feel the same?