How to Use Employee Training as a Retention Tool
Category : Tips
What do you think, how often do people change jobs these days?
It might be more often than you think. As CNN Money reports, a new LinkedIn study revealed that young people change jobs a lot more than their parents did in the past.
According to LinkedIn findings, on average, people now have four job changes by the time they’re 32 years old. Furthermore, some of them don’t just change jobs, but often switch into entirely different industries as well.
Unsurprisingly, the biggest portion of job-hoppers works in media, marketing and entertainment.
What’s the Reason Behind this Trend?
These statistics indicate that the era of employment for life is seemingly over, but what’s the reason behind it?
Basically, most millennials want to move up the ranks faster than their parents. And wouldn’t you know it; one of the quickest ways to do this is to change jobs every few years. A new role in a different company often comes with a noticeable pay raise.
According to CNN, people who find a new job can hope for a 15% raise. On the other hand, a person that stay in the same company (and more importantly, in the same role) can only hope for a 3% raise – and that’s the best case scenario mind you.
Looking at these numbers, it’s not hard to figure out why so many business leaders are start to put more and more emphasis on employee retention strategies within their organizations.
How Can Companies Curb the Turnover Rate?
Most organizations are trying to combat this by offering their employees raises, a number of benefits and a multitude of incentives. However, experience – and not just work experience, but life experience as well – seems to be what employees are looking for nowadays.
According to Navigating Ambiguity: Career Research Report, 35% of employees want their employees to provide them with learning opportunities that will help them further develop their skills and careers. This number is up 7% from ten years ago.
Paradoxically, the number of organizations that offer development benefits has decreased by 3% during the same time period. And while some companies are focusing on social networking as way to help their workforce develop, only 20% of employees see this as useful, according to the same report.
The Benefits of Employee Training
Natural, some employers don’t want to spend too much money on employee development, because they are afraid that any of their employees might take those skills and simply leave.
But this can easily become a Catch-22, because as we mentioned earlier, employees who are not given enough opportunities to develop their skills grow disengaged and dissatisfied over time until they finally leave the company at a certain point.
But there are actually several good reasons you should invest in proper employee training. As the experts from the sales recruitment firm Pulse Recruitment from Melbourne explain, some of the benefits of employee training include:
Increased Satisfaction in Your Workforce
Nurturing your top employees to develop more rounded skills will allow them become more engaged in their work and help them contribute to your organization. What’s more, if you create an employee development plan that will help your employees advance within the company; they will see this as the first step toward a future promotion.
Added Efficiency and Flexibility
You can easily train your staff members to be capable in more than one aspect in your business. For instance, you can teach them to be proficient in different areas like administration, operations and even sales. This will keep your workers engaged and it will also be helpful when you’re setting up schedules or filling in for absences.
Firm Company Culture
Once you start prioritizing employee training and development, you’ll send a clear message to your workforce that their future is important to you and that you want to be a part of it. And if you get involved in the process, and share some of your experience and knowledge with them, you’ll establish yourself as a serious leader, who is willing extra work to keep his employees satisfied.
Statistics gathered by the Dale Carnegie Training Center show that worker turnover accounts for more than 11 billion dollars in financial losses for American companies every year.
So if you’re worried about the costs of employee training, just keep in mind that these costs are nothing compared to the money you’d waste trying to discover and hire new employees.