Staff turnover costs British businesses at least £1.13 billion every year according to research by Oxford Economics and income protection providers Unum. According to the research, the average fee for replacing a departing staff member is £30,614, comprising of agency fees, advertising and wages during the time when a new employee is yet to reach optimum productivity. Replacing employees is an expensive business.
So how can you ensure that your staff stay motivated in their role and retain them? One way of doing this is to train staff and develop their skills. Training your staff can improve business performance, profit, staff retention and morale. Here are some of the benefits of training, both for your employees and for your business.
Everyone needs something to work towards. Encouraging employees to fulfil their potential can result in improved employee performance. An employee who has received the necessary training is better able and more motivated to do their job. Their confidence should also improve as a result of the training, which in turn can lead to better business output.
Training can take employees into other positions within the organisations, giving them a defined career path that will keep them working for you. Developing junior staff members and preparing them to move up the company not only helps with career progression for the individual, but also ensures that you are future-proofing your workforce. Businesses that implement effective career development ensure business continuity, while motivating and retaining talent.
Less recruitment costs
Training existing staff with the skills you need in your organisation can be a cheaper alternative to hiring. You can choose what new skills your workforce gains, targeting skills to meet the needs of your business for now and for the future. In addition, motivated employees will tend to stay with their employers, leading to improved retention and a reduction in the costly business of recruitment.
Offering training and development for your employees can also lead to a more satisfied workforce. Employees feel more valued when companies spend time and money to train them, leading to a positive relationship between employee and company.
Attract top talent
Training and developing your staff can attract better candidates. New hires will be more interested in joining if they believe you are a company that invests in its people.
So investing in continued professional development of people is beneficial both for employee morale and for the company’s bottom line. People are a business’s most important asset, so it is crucial for employers to ensure that the development of them is at the top of their agenda.