Why Companies Must Invest More in Human Resource Development

By: Khoerunisa
Student ID: 231010504424

JurnalPost.com - Amidst digital transformation and the rapidly changing business landscape, a company's ability to survive does not depend solely on technology, capital, or marketing strategies. The human factor remains a critical component that determines an organization's capacity to adapt to change.

However, in practice, some companies still focus their human resource management on short-term efficiency. Employee training programs are often implemented as routine activities or only provided when the company faces specific needs. In reality, human resource development should be viewed as a long-term investment directly linked to organizational sustainability.

Training and HR Development Are Not the Same

In human resource management, training and development have different goals, even though they are interrelated.

Raymond A. Noe and Malayu S.P. Hasibuan explain that training is generally directed at improving the skills employees need to perform their current jobs. Its orientation tends to be more specific and short-term, such as improving technical skills, understanding work procedures, or meeting company operational standards.

Meanwhile, human resource development has a broader scope.

Sondang P. Siagian, Kurniawati, and Rio Nardo define human resource development as a long-term process aimed at increasing an individual's intellectual capacity, conceptual understanding, skills, and leadership abilities.

This means that development does not just enable an employee to complete the tasks they face today. Development also prepares employees to take on greater responsibilities and meet the changing needs of the organization in the future.

It is important to understand this distinction. Companies that rely solely on technical training risk having employees who can perform their current jobs but are not necessarily prepared to face changes in technology, job structures, or future business demands.

Training Without Planning Can Lose Effectiveness

One issue that frequently arises is the implementation of training without prior clear needs assessment.

Andayani and Hirawati, in their research on training and HR development at PT Pos Indonesia, Magelang City Branch, demonstrate the importance of managing planned HR programs in relation to employee performance.

Training programs are not enough just to be held. The material must align with job requirements, participant capabilities, and organizational goals.

If a company provides training unrelated to the actual needs of employees, the benefits will certainly not be maximized. The same can happen when programs only target specific groups or levels, while development needs at the operational level do not receive adequate attention.

Therefore, companies need to first identify the competency gaps within their workforce.

The question is not just, "What training will be held this year?"

A more important question is, "What capabilities do the company and its employees need to face the challenges of the coming years?"

From this question, companies can design more targeted development programs.

HR Development as a Long-Term Investment

Technical skills can change very rapidly. Capabilities that are relevant today may not hold the same value in a few years, especially as technology and work methods continue to evolve.

This is why companies need to view HR development as an investment.

Investment in people is not limited to formal training. Companies can develop employees through mentoring programs, coaching, job rotation, further education, self-directed learning, leadership development, and opportunities to participate in strategic projects.

Through these processes, employees gain the opportunity to expand their capabilities while understanding the organization more comprehensively.

When companies provide space for employees to grow, the relationship between the organization and its workers can also become stronger. Employees are not just positioned as labor to complete tasks, but as assets with the potential to continue growing alongside the company.

Technology Opens Broader Development Opportunities

Digital technology development is also changing how companies develop human resources.

Wardatun Nikmah and her colleagues discuss the use of technology in HR development. The presence of technology allows the learning process to be more flexible, accessible, and customizable to individual needs.

Companies can now use Learning Management Systems (LMS), online learning platforms, talent management systems, and data-based analytics to identify employee competency needs.

With this technology, companies can monitor skill development, provide learning materials according to needs, and evaluate program effectiveness more systematically.

However, technology remains a supporting tool. Its success depends on the company's ability to determine a clear direction for development.

Sophisticated digital platforms will not provide many benefits if the company itself does not know what competencies need to be developed.

Development Must Start with Needs Analysis

Muhammad Yusuf and Robi Hendra emphasize the importance of sustainable training and HR development.

One important step is to conduct a development needs analysis. Companies need to look at the skills employees already possess and compare them with the competencies the organization needs now and in the future.

From this process, companies can identify the competency gaps that need to be addressed.

Development programs can then be structured more purposefully through a combination of technical training, mentoring, coaching, work practice, and periodic evaluation.

Evaluation is also a crucial part. Companies need to know whether development programs truly improve employee competence and impact their work.

Without evaluation, organizations will struggle to distinguish between programs that actually deliver results and activities that merely consume the budget.

HR Development Is Not Just a Cost

The view that employee development is a cost burden needs to be abandoned.

Companies may have to spend a budget to organize training, provide learning systems, bring in mentors, or provide educational opportunities to employees. However, the benefits of HR development can be felt over a longer term.

Organizations need a workforce capable of learning, adapting, solving problems, and keeping up with technological changes. These capabilities cannot be formed solely through short training sessions conducted when the company is facing problems.

Development must be a continuous process.

Ultimately, a company's best investment does not lie solely in its buildings, machines, systems, or technology. Companies also need to invest in the people who operate and develop all those resources.

When employees gain the opportunity to improve their skills, the company is also strengthening its own organizational capacity.

Therefore, human resource development should not be placed as an auxiliary program. HR development needs to be part of the company's strategy to build an organization that is productive, adaptive, innovative, and capable of facing future challenges.

References

Andayani, T. B. N., & Hirawati, H. (2021). The Influence of Training and HR Development on Employee Performance at PT Pos Indonesia, Magelang City Branch. Jurnal Ilmiah Manajemen Ubhara, 3(2), 11–22.

Hasibuan, M. S. P. (2019). Human Resource Management (Revised Edition). Jakarta: PT Bumi Aksara.

Kurniawati. (2020). Human Resource Development (Edition 1). South Tangerang: Universitas Terbuka.

Nardo, R. (2024). HR Planning and Development. West Sumatra: Penerbit Mitra Cendekia Media.

Nikmah, W., Mukarromah, A., Widyansyah, D., & Anshori, M. I. (2023). The Use of Technology in HR Development. Mutiara: Journal of Social Science and Humanities Research, 1(5), 366–386.

Noe, R. A. (2020). Employee Training & Development (8th ed.). New York: McGraw-Hill Education.

Siagian, S. P. (2012). Human Resource Management. Jakarta: PT Bumi Aksara.

Yusuf, M., & Hendra, R. (2023). Sustainable Human Resource (HR) Training and Development. JUPEMA (Journal of Community Service), 2(1), 52–63.