A company’s employee retention rate acts like a thermometer for humans, hypothetically measuring the company’s culture as healthy or too hot (with a fever). Suffering from a “high temperature” in the form of high attrition damages a company’s reputation, onboarding capabilities, training efficacy, and overall performance.
On the other hand, when a company’s attrition is low or “healthy,” the company is in a comfortable state where employees enjoy spirited competition, tight work relationships, and a thriving work, training, and cooperative environment. Employees who are well-taken care of lead to a low attrition rate, thus yield exciting, exemplary, and engaging results.1
The bottom line is that employee turnovers are costly, further exacerbated by the fact that employees leaving can influence others to do the same. The Center for American Progress found that a turnover can cost companies anywhere from 16% to 213% of the leaving employee’s salary.2
To prevent this, companies must revisit their training processes and engagements. And where do these all start? From the very first contact points with a prospective employee: onboarding and training development offerings.
Why Is Training Important?
A good onboarding and training program makes an outstanding first impression on your new hires, getting them excited for their new career and enticing them to stay for the long haul. But these first two phases don’t end after a couple of weeks or when HR says it is. Training and employee development must be nurtured throughout their careers to seek advancement and make them feel valued in the company.
Numerous studies support the importance of employee training in retention. Here are some employee retention statistics reported in a recent TalentLyft infographic.3
- 51% of employees are thinking of switching to a new job, according to a Gallup survey.4
- A recent workplace study found that 87% of employers plan to prioritize employee retention over the next five years.5
- An Allied Workforce Mobility Survey found that 25% of employees leave their job within the first year.6
- According to the Society For Human Resources Management (SHRM), 69% say that a great onboarding experience increases the likelihood of employees staying in a company for three years.7
- MRINetwork found that 72% of surveyed employees say their number one reason for switching jobs is career advancement.8
It's better to assume that employees are constantly looking for new opportunities. However, it’s the company’s responsibility to divert their attention away from thoughts of quitting and shift it towards enthusiasm and internal employee development.
How can proper training increase employee retention?
Employees face a variety of challenges in their daily lives and make decisions that could have an impact on your business operations. It is necessary for companies to consider their life outside of work and create ways to support their goals.
Here are some advantages of proper employee training:
1. Training can improve workplace engagement and productivity.
- According to Gallup, 85% of employees worldwide are disengaged or actively do not participate at work.9 Although there are numerous factors why employees are disinterested in their jobs, the accountability of maximizing retention always falls on the company as a whole, their leaders, Human Resources (HR), and the prevailing company culture.
- To address this, company leaders must establish an environment that genuinely cares for employees’ voices and growth—investing in employee development and training. This can open more opportunities for both the employees and the company. Additionally, it can reduce unwanted habits at work like showing up late, demonstrating careless behavior, sloppy energy, and more. In return, it creates a more efficient, competitive, and engaged workforce.
- Training that aims to improve employee investment and aids in helping the employee identify with the organization will increase one's overall commitment to the company. Ultimately, this makes an organization better able to keep its employees.
2. Training can help your company stay competitive in the industry.
- Apart from having good compensation, benefits, perks, and a positive work environment, one important factor that motivates employees is competitiveness. Looking forward to goals and participating in them feels better than doing something repetitive, endless, and pointless.
- Investing in employee training prepares them to take on bigger roles. Nurturing experts, enhancing your workforce, and broadening your horizons for more opportunities can produce loyal employees who stay longer, thus minimizing attrition while maximizing retention.
- In addition, career-driven individuals (who likely have competitive networks) recommend companies that invest in employee development. With this, your company may attract top-tier candidates, as well.
2. Training can help your company stay competitive in the industry.
- Apart from having good compensation, benefits, perks, and a positive work environment, one important factor that motivates employees is competitiveness. Looking forward to goals and participating in them feels better than doing something repetitive, endless, and pointless.
- Investing in employee training prepares them to take on bigger roles. Nurturing experts, enhancing your workforce, and broadening your horizons for more opportunities can produce loyal employees who stay longer, thus minimizing attrition while maximizing retention.
- In addition, career-driven individuals (who likely have competitive networks) recommend companies that invest in employee development. With this, your company may attract top-tier candidates, as well.
3. Training is a worthwhile investment.
- Some companies or HR departments downplay or underestimate the power of proper training, worrying that employees could easily and quickly leave with all the knowledge and skills the company spent on. However, a study by SHRM found that training directly reduces employee turnover and absenteeism.10
- In addition, a recent LinkedIn Learning report showed that 94% of employees are more likely to stay at a company that invests in their career development.11 Companies need to take advantage of this insight and take care of the learners for them to stay.
- While a good and comprehensive training program for employees is important, it is also necessary to consider what kind of development they value. Get feedback on how to improve your training program and develop it to meet your company’s goals and your employees' expectations. More than doubting whether to invest in employee training or not, it is more important to show that you care. Being disconnected from your employees results in more loss than gain.
Believe in your employees, and they will invest in you.
Today's workforce believes in its own worth and seeks to work for companies that share the same belief. It’s no coincidence that companies that make the list of the "Best Companies to Work For" are also those that invest heavily in employee development and training.
Planning to improve employee engagement, providing opportunities for career advancement, and creating a positive work culture is the perfect formula to increase employee retention.
Improving employee retention directly benefits your organization and allows it to thrive more. Your employees all have a direct contribution to your operations and performance. Whatever happens to them affects you directly as well. It’s time to put the spotlight on the workforce that carries the business and how much more opportunities it can provide for both the company and your employees. If you approach training in the right way while regarding and respecting your employees, they’ll have little to no reason to leave at all.
- 1^Choosing the Right Outsourcing Partner
- 2^There Are Significant Business Costs to Replacing Employees
- 3^Infographic: 7 Key Employee Turnover Statistics
- 4^What Job-Hopping Employees Are Looking For
- 5^Eye-Opening Work-Life Balance Statistics [2022]
- 6^2012 Allied Workforce Mobility Survey: Onboarding and Retention
- 7^Don't Underestimate the Importance of Good Onboarding
- 8^2016 Recruiter & Employer Sentiment Study
- 9^State of the Global Workplace
- 10^Developing Employees
- 11^2018 Workplace Learning Report
