The Link Between Training Programs & Employee Retention
Let me start this post by telling you about John. John is the manager of a local manufacturing facility that employs 75 people in various capacities: line workers, technicians, engineers, office workers and other professional staff. John’s proud to employ so many local residents, but is perplexed by his company’s high employee turnover rate. When he asks outgoing employees why they’re leaving, the most common answers are that they didn’t see a clear path to further their career, or that they didn’t feel challenged enough, leaving John to wonder what he’s doing wrong.
Like John, many business owners and managers faced with high turnover rates are uncertain of the steps they should take to help increase employee retention. And while there are often many reasons as to why an employee chooses to leave an organization, many of them can be linked to a lack of engagement or opportunities for advancement.
The simple truth is that the vast majority of employees want to do a good job and enjoy what they do for living. The problem many of these would-be great employees have, and often the reason behind their eventual departure, is that they aren’t given the tools or resources they need to be successful. That’s where employee development training programs come in.
Employee training programs are more than just a perk: effective employee training programs have been linked to improved retention and engagement rates. Unfortunately, training and professional development programs are often considered superfluous and are the first thing to go when an organization is looking to lower costs. While this may result in short-term gains, the long-term effects of cutting employee development and training initiatives (namely, an increase in employee turnover) will in fact result in increased costs as frustrated employees leave to pursue other opportunities.
Below we’ve compiled the top three reasons why your organization should begin developing an effective employee training program:
- Increase your “in-house” expertise
By investing in the training and development of your current workforce, you avoid having to go out and hire additional employees to fill the “skills gap.” Encouraging (or even better, paying for) an employee to learn a new skill or competency will allow your company to broaden or increase the level of expertise and knowledge within your organization, which translates into added value you can offer your existing or prospective customers.
- Start grooming tomorrow’s leaders today
The best business leaders are not only concerned about making sure their company is successful today, but also about laying the groundwork to ensure their company is successful in 15, 30 or even 50 years from now. A key part of that forward-thinking strategy is to begin training your current star employees to move into middle and upper management in a few years time.
- Challenged employees are engaged employees
And engaged employees stick around. The belief that businesses shouldn’t invest in training their employees because they’ll just take their newly learned skills and updated resume to a new company couldn’t be further from the truth. Employees who are offered opportunities to grow and develop as professionals report higher levels of satisfaction, and are more likely to stay with their current employer.
Employee satisfaction and engagement are critical to building and maintaining a strong performing company, and nothing is more fundamental to generating feelings of satisfaction and engagement than providing your employees opportunities for professional development. Employee development training programs offer those learning opportunities, but many companies don’t have the time, expertise or budget to coordinate first-class, relevant instruction and learning programs. That’s where G&A Partners comes in.
As a leading provider of Human Capital Management (HCM) technology, G&A has a successful track record of providing scalable technology solutions, including a comprehensive Learning Management System, that meet clients’ organizational needs as well as the individual needs of their employees. Learn how we can help you train and develop your employees by calling 866-634-6713 to speak with an expert or schedule your free business consultation.