We cannot underestimate the importance of training and developing staff both from a future proofing standpoint, to equip businesses with the necessary skills and talent to embrace and adapt to change, but also from a financial perspective. Losing staff to competition by not providing career development opportunities can be extremely costly.
A CAP Study found that the average costs to replace an employee are:
- 16% of annual salary for high-turnover, low-paying jobs (earning under $30,000 a year). For example, the cost to replace a $10/hour retail employee would be $3,328.
- 20% of annual salary for midrange positions (earning $30,000 to $50,000 a year). For example, the cost to replace a $40k manager would be $8,000.
- Up to 213% percent of annual salary for highly educated executive positions. For example, the cost to replace a $100k CEO is $213,000.
Employees are a company’s biggest asset. Investing in talent is vital for business growth and success. Getting the right people is one thing, retaining them and growing talent is another. According to Gallup, organisations investing in employee development experience an increase in sales and doubling of profits. Training and development increases staff engagement, engagement is key to financial success.
Companies that invest in staff development experience 94% higher retention rates
With an increasingly competitive landscape, improving performance is essential. This can only be achieved through consistent commitment to development and growth.
Some of the key benefits of employee training and development include:
- Staff retention – a solid training programme brings a competitive advantage when hiring talent, by offering career progression, fostering loyalty which helps drive retention.
- Nurturing future leaders – Establishing leadership development programmes ensures the organisation is nurturing the talent and capability in staff to lead future generations.
- Staff engagement – there are strong established links between staff engagement, commitment and performance. This can be achieved through training and development programmes which prevent stagnation and instilling a culture of progress, learning and growth.
- Staff empowerment – equipping staff with the necessary skills and resources to do their jobs to the best of their abilities, empowers staff and increases autonomy, satisfaction and engagement. Low empowerment low engagement and vice versa.
The millennial context is especially relevant as they are expected to occupy 75% of the workforce by 2025.
It is important to offer graduates career opportunities. Millennials are especially eager to progress within their career. Unlike the Gen X or older co-workers, millennials are less willing to wait for an undisclosed amount of time to be recognised and rewarded for their hard work.
Offering millennials training and development opportunities through talent programmes will go a long way to retaining them in the future. It is far more cost efficient to nurture talent from within than to suffer the consequences of staff retention and expensive rehire.
A promotion elevates your employee’s loyalty and dedication to your company.
Dan Epstein, CEO of ReSource Pro, whose staff are 90% Millennial, believes that by developing in-between steps, “managers can meet their desire for career progression,” adding that “it also provides incremental training and experience
Article written by: Dr Jodi O’Dell