Don’t Overlook Professional Development in 2024 Budgets

The end of the year and the holiday season is an opportunity for many of us to breathe a bit easier in our jobs. It’s a time for office get-togethers, festive holiday parties, and enjoying the company of our friends and families. But for ESOP leaders, November and December can also be the most stressful time of the year.

That’s because many ESOPs are now deep into their budget processes for 2024, attempting to achieve the best allocation of resources based on revenue and profitability expectations for the coming year. There are many difficult decisions that need to be made to maximize an ESOP’s ability to succeed in the coming year and beyond. Sometimes, when budgets may be tighter, there is a temptation to cut back on expenses for items like professional development and education for employee owners. ESOPs making their 2024 budget plans with an eye on the future should resist this temptation. In fact, consider it an opportunity to add additional resources to bolster development and education. Wise leaders know this is an investment that pays among some of the highest returns from improved efficiencies, new technologies, or competitive market intelligence.

Thinking longer-term, the marginal cost of committing to a proactive professional development plan for employee owners is far outweighed by the benefits: upskilled, happier employees who perform better and are more satisfied in their jobs. In the world of finance, this is called asymmetric returns, where the upside potential is much greater than the small risk to capital. One of the reasons why the employee ownership model works so well is because it’s a two-way commitment. Employees who join an ESOP are making a long-term commitment to the business, while ESOP companies, in turn, commit to building wealth and financial security for employees. In the context of employee ownership especially, encouraging and expanding professional development opportunities is simply a smart business decision.

Professional development can take many forms. Some ESOPs reimburse or help defray costs for higher education degrees or specialized certificate programs. Others send employees to management and leadership programs/ seminars, or technical training to build specific skills required by their jobs. Another way is through membership in professional and industry associations, which offer conferences and other events that provide educational and networking opportunities.

In fact, your TEA membership includes many unique and affordable opportunities throughout the year to further employee owners’ development and education. Through your local TEA chapter, employee owners have access to several events each year that are close to home and provide high quality educational content, from “ESOP 101” learning to executive-level programming. Registration for many of TEA’s spring chapter and regional conferences is open or will be opening soon, please visit our Events calendar for more information about your local chapter events.

At TEA’s national events, the Employee Owned conference in Las Vegas and our National Conference in Washington, DC, there is the added benefit for attendees to
receive continuing education credits. Attendees at Employee Owned can earn up to 12 credits, while up to 10 credits are available for participants at TEA’s National Conference, a major incentive that is included in the cost of registration for both events.

In addition to professional development and education, TEA’s national and chapter/regional events offer unparalleled networking opportunities for employee owners and ESOP professionals. We all understand the value of strong networks in our jobs and careers, and there’s no better way for employee owners to forge new connections and strengthen professional relationships than at one of TEA’s many events held throughout the year.

If you attended Employee Owned 2023 in Las Vegas a few weeks ago, you heard me speak about the importance of participating in our upcoming National Conference and Advocacy Day from May 7-10. It bears repeating that this will be the most consequential gathering of employee owners in our nation’s capital in a generation, and if you care about protecting your ESOP and your retirement wealth and security, you’ll include National Conference attendance in your 2024 budget.

There’s much on the line for ESOPs in the coming year, and you can do something about it. The U.S. Department of Labor is still drafting a rule for adequate consideration, which affects every ESOP and employee owner, and Congress still needs to fully fund the DOL’s new Employee Ownership Initiative. By joining with hundreds of your fellow employee owners on ESOP Advocacy Day on May 8, you can help educate your representatives in the House and Senate on our core issues. Hearing how ESOP issues directly affect their constituents is one of the most effective and powerful ways to convince members of Congress to support ESOPs and employee ownership, and your participation will be critical next year.

This year, when crafting your ESOP’s 2024 budget, please keep in mind that investing in professional development is both crucial to the future of your ESOP, and is also a major benefit for employee owners. Having smarter, more productive, higher skilled and happier employees will be a requirement, not merely an option, if you’re planning for long-term success.