Any employer should be concerned about high employee turnover. Consider the cost of recruiting, interviewing, and training new personnel, not to mention the fact that these individuals may be less skilled than the existing staff they are replacing. Employees have more options when the economy improves and the labor market expands, making employee retention even more difficult.
So, why is employee retention significant?
According to Achievers, Employee retention should be a top priority for any business because the cost of losing top talent is high. SHRM study states that, it costs $20,000 to $30,000 in recruiting and training to replace a manager earning $40,000 per year. This does not even take into account lost interview time, knowledge, productivity, or cultural impact. In addition, low retention rates impact motivation, productivity, and performance. Understanding employee retention and developing an employee development strategy are so essential for keeping top performers on board.
Before we go any further, let's define Learning and Development (L&D) in the workplace.
According to Persinio, (L&D) stands for learning and development. The purpose of great L&D, as one of the main responsibilities of any organization's HR department, is to provide employees with the skills and knowledge they need to grow in their roles while also helping the company grow.
Sodexo listed ways the employer can benefit from employee development:
Staff retention: showing your employees that you value them and their growth by spending time or money on them shows them that you care about them and their development, which makes them more likely to stay with you.
Help attract new talent: In a competitive market, a workplace culture that prioritizes learning from the start can help you stand out when it comes to hiring new talent. Gives motivation: Self-improvement can help employees feel more motivated at work, as well as improving productivity and engagement.
Prepare for the future: by training your employees, you're assisting them in preparing for the next step in their careers, which means you'll be able to fill positions internally when the time comes. This will assist in lowering the cost of external candidate recruitment, onboarding, and training.
Improve your company's performance: enhancing your employees' skills will benefit them not only in their careers, but also in their work performance, as well as yours.
Furthermore, Amit listed down four strategies that L&D can use to retain talent in a competitive business environment. This includes:
1. Strengthening L&D Strategy to Help Employees Prepare for the Future
Even if training and development were beneficial before the pandemic, it is now more crucial than ever to help employees feel in control of the uncertainty that surrounds them. Employees gain new information as well as the confidence to work better as a result of a solid L&D plan. Companies can improve their chances of attracting and retaining outstanding personnel by implementing strong L&D programs.
Encouraging individuals to learn by providing them with opportunities to do so is a fantastic approach to develop a sense of loyalty in them, which may encourage them to stay with a company. This is why investing in employee development is critical for a business's long-term success.
2. Increasing the Effectiveness of Onboarding Programs
The onboarding process is one of the first impressions that new hires have of the organization they are joining, making it a crucial procedure. According to Glassdoor, companies with a great onboarding process increase new hire retention by 82% and productivity by more than 70%.
The onboarding experience is critical because it reflects the firm's commitment to its employees, which in turn fosters employee engagement and a strong bond with the organization. Investing time in training new employees helps them feel appreciated and increases their chances of staying with the company. In addition, L&D may boost new employees' job satisfaction by addressing any unique skill shortages through customized onboarding and training.
3. Self-paced learning is encouraged.
Self-paced learning allows millennial and Gen Z employees to establish a work-life balance when they place a high value on it. It also improves the learning process' efficacy. Self-paced learning, at its foundation, places the burden of learning on the employee, which increases incentive to study. Employees who are motivated are more likely to stay with a company for a longer period.
4. Upskilling and reskilling on a regular basis
If employees are considering leaving the firm to pursue a different career path, L&D can help prevent a talent drain. If there is an internal role available for such individuals to shift to once they have gained these new skills, L&D can provide the necessary training. Internal upskilling and reskilling initiatives can help a company retain valuable personnel by retraining them in subjects in which they are interested.
The finest candidates want to work for organizations that invest in their growth and development by providing opportunities to update their abilities in a competitive job market. Having a good L&D strategy in place is one approach for firms to slow down the talent drain. Tech Consultants can help you find the top applicants for your job openings. Contact us right now.
Tech Consultants can help you find the top applicants for your job openings. Contact us right now.
Category: Employer
