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Employee Investment: A Leadership Advantage (Insights from Nike)

GOTNI LEADERSHIP CENTRE - Blog - CEOs Desk - Employee Investment: A Leadership Advantage (Insights from Nike)

In an age where the search 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.

“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.”

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.

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.

“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.”

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.

“If business leaders in Nigeria 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.”

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 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.

“When employees feel that their growth aligns with the company’s vision, loyalty follows naturally.”

How to Cultivate Talents within your Organization

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

  1. 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.

  2. Mentorship Programs: Pair 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.
  1. Continuous Learning Opportunities: 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 employees’ growth.

  2. 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.
  1. 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 your 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.

“Dear business leader, the key to the sustainable growth of your organization is already within your walls. ”

Paul Adeagbo is a Research Executive at the GOTNI Leadership Centre, where he leverages his expertise in research to provide historical context and data-driven insights to support informed decision-making and knowledge sharing. His work is instrumental in shaping the strategic direction of the Centre by delivering valuable information that empowers leaders to make better decisions

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