Slay Attrition Rate by Upskilling Instead of Hiring
With terms like industry 4.0 and web 2.0, employees in various fields like IT, manufacturing, and sales are keen to upskill themselves. In such situations. If you don’t give them a chance to learn and implement new skills, attrition is bound to rise.
Additionally, you can use specialized analytics to churn the right insights from the attrition to figure out your remediation plan to check the friction.
Here are some of the reasons you should ponder on training your workforce instead of hiring new members for the skillset your organization is lacking at.
Recruitment is Expensive
According to this U C Berkeley research paper, the training and upskilling cost $1,208 while hiring a new employee demanded much higher, close to $4,000 on an average. The same amount spiked to $7,000 for a management position.
Upskilling needs training and instructor investment while a recruiting process would require you to publish the open position across multiple channels. Then the interview would demand expenses. On top of these expenditures, the training and development of the new member would need more finances.
So, hiring is undoubtedly going to make a sharp dent. Why not, rather, upskill your employees in emerging or in-demand skills?
Time is Money; Invest and Grow It
Replacing a leaving employee with a new hire demands your bandwidth in an exit interview, payroll processing overhead, hiring and onboarding the new employee, arranging for their initial training and induction program. Moreover, don’t forget the days you would spend in getting the apt candidate hired, right from publishing the job post to interview and releasing the offer.
Save your precious time and arrange those training the leaving employees demand. This not only saves you from wasting time, but it would also help you retain existing employees by leveraging their career onto the desired path. And don’t forget the money mentioned above.
Satisfied Employees Strengthen Your Brand
Do you need an explanation here? If an employee is looking to add Six Sigma knowledge, roll out the training plan, and let them improve their portfolio from a quality analyst to Six Sigma expert.
All you gain in the process is employee retention; plus, the kind words they would spread in your favor making your brand stronger.
Enhanced Company Portfolio
Once you determine the set of employees open to training and learning new skills, you can always flaunt new services in your organization’s offerings. If you do not have the right team to work in blockchain development today, identify the flexible employees who can take additional responsibility or change the work profile to learn a booking technology.
You could train them on time in a few months and probably are in a better position to grab new contracts. They will thank you for the new learnings. You would be mutually benefitted.
Don’t forget a new booming technology invites more earning for both the parties: employer and employees.
Solid Leadership and Training Prospects
Retained and improved employees mean the employees would be able to take a leadership role after a few years of experience in the new skillset. Although this looks like a long-term benefit, it indeed would give birth to new leaders and managers soon. Of course, the immediate benefit is project execution that demanded the newly learned forte.
And an experienced employee would be able to train the juniors easily. That would save you from external training faculty. Moreover, the trainer would earn a few extra dollars from the training program or intangible benefits like a stronger network and brownie points during the assessment.
When you have to hire a new workforce, never hesitate. However, analyze if some portion of the attrition is because the employees are tired of same old work profile. Also, with the ratio of Gen Z increasing in the offices who are hungry for new skills to learn and deploy, you definitely need to offer them challenges to handle every few months. What would be a better option than taking an upmarket training and chiseling their knowledge for the prospective assignment in the pipeline?
How would you analyze your attrition reasons and decide the right training for the leaving employees?
HR Analytics hub offers you stunning dashboards to dive deep into the attrition data of your organization. You can now analyze your recruit demographics too. These analyses with our customized dashboards would help you plan the training needs of your organization. What more? Our tools don’t collect your data but help you analyze them on the premise. Your data security is completely taken care of.
Reach out to us for your data analysis needs and reap the best out of your organizational HR data.