“We don’t have the time to train our staff…” or “We don’t have the money to spend on training…” – these are just a couple of the many reasons why businesses justify not investing in the development of their employees.
“Your people ARE your business” – this is a well-used phrase to describe the importance of staff (indeed, it’s even on my website!), however how is this actually a reality within the company that you own or work for?
Oxford Economics has produced a report entitled “The Cost of Brain Drain – understanding the financial impact of staff turnover” (February 2014 – you can download the full report here http://www.oxfordeconomics.com/my-oxford/projects/264283). In this report the global advisory firm found that the cost of replacing an employee with a salary above £25,000 in the legal, retail, accountancy, media and advertising and IT & tech sectors costs an average of £30,614. This figure is made up of a multiple things but the two main aspects is the cost of business output that is lost whilst integrating a new employee and the actual physical costs of advertising, interviewing, inducting etc. a new team member. I was quite amazed by this figure and not expecting it to be so high!
There are many reasons why someone would want to leave their work but being bored, not being challenged enough, and not being able to develop their skills and abilities are some of the most cited. However this is very much under the control of the employer and can be managed appropriately.
Incorporating training as part of the package can contribute significantly to staff retention as well as benefiting your employees and your company overall in a number of ways including:
- Training and providing continuous professional development opportunities will promote greater job satisfaction.
- Staff looking to move on will be less inclined to do so if you are offering them ways in which they can learn and grow with you.
- Training helps your business to run better with staff feeling more engaged
- It is important to ensure that knowledge is shared and transferred and training can help you to achieve that.
- Improve productivity and efficiency by training people to be competent in several aspects of the business – this prevents boredom and allows people to utilise a variety of skills.
Granted training and development can be seen as an expense and time-consuming but in the long-term it makes great business sense. And reading such reports from Oxford Economics, can you afford not to?