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Employee training has become an essential part of any company, especially corporations. This subject has been discussed extensively in the past, and the core of the debate was whether training programs actually improve retention. However, most experts agree that employee training is a valuable asset that can immensely impact a company’s success and help reduce turnover.
The corporate training industry, as a whole, has grown exponentially over the years. Now, hundreds of companies offer their services and tools to help improve your workforce and ensure better employee retention. But, before we dive into how employee training programs can lower turnover rates, let’s review some of the different ways that turnover can impact your company.
A higher than average turnover rate can impact your business in more ways than one. Here are some of the more common effects of a high employee turnover rate.
New Hire Costs
Retaining an employee can be substantially cheaper than getting a new employee if you add up recruitment, interviewing, hiring, and training costs. These costs will leave an even more significant dent in your budget when filling in more complex or managerial positions.
Negatively impact your overall productivity
Finding a replacement will give other members of a particular team more tasks that they have to handle. Reviewing applications and conducting interviews can take a lot of time and requires time away from other work tasks. Additionally, if a vital member of a team leaves, productivity might instantly decline or even stop altogether.
Lose future prospects
Suppose you put yourself in the shoes of a person interviewing for your company. If you hear that the company has a reputation for losing employees consistently and is currently hiring for many replacement positions, you might think twice about accepting a particular job.
Lower employee morale
No employee wants to see their colleagues leaving out of frustration or the lack of growth inside the company. Also, with many team members going elsewhere, morale could lower due to the weakened work relationships. Empty "office space" is generally a sign that things aren’t heading in the right direction.
The bottom line is that a high turnover rate can cost you money, time, as well as lowering the overall morale and reputation of your workforce. Now, how can employee training help reduce turnover rates? Let’s find out.
Most issues that lead to increased turnover are preventable if companies acknowledge they have a problem and take the necessary steps to fix it. A well-thought-out training program could be the solution for most of those problems, as long as it is taken seriously by employees and management.
Here are some of the main reasons a robust training program can reduce employee turnover.
Many employees who leave their jobs will cite a lack of upward movement within the company. The lack of career development and career path opportunities will make your employees feel like there is no real reason to put effort into their particular position. It’s only human to strive for better opportunities and higher-paid positions. This is where a training program will come in handy, as it proves that you are interested in your employees' careers beyond your immediate needs. Statistics show that 46% of employees are more likely to stay if their company offers training.
Starting a new job will usually feel intimidating, especially if you are about to be handed a lot of responsibility. This is why creating a proper onboarding program gives employees a full introduction to your company, the culture, benefits and more. Your new employee will feel welcomed and more connected to the company. All of this will lessen the chances of them leaving.
Sometimes the reason for a high turnover rate might be connected to the poor performance of your managers. Without proper leadership, most workforces will quickly turn to chaos and inefficiency. Teaching your managers better skills for recruitment will also help you find better employees. This is why creating a manager training program could be crucial for a happy and stable workforce. Weak management will instantly translate to a weak and unhappy workforce that won’t think twice about leaving for greener pastures.
Another overlooked aspect is how fulfilled your employees feel. Employees who feel like they have all the necessary skills to complete their tasks in a timely fashion will experience higher job satisfaction. A well-thought-out training program will help with this. In the long run, if your employees feel like an important part of the team, they will want to contribute to the overall success of your company.
If you find yourself struggling with finding the right ways to reduce employee turnover, an employee training program might be the perfect solution. Keep in mind that hiring experts like Designing Digitally to help you create an adequate training program will ensure a happier and more dedicated workforce.
Designing Digitally has been developing custom online training solutions for companies for over a decade. We have the skills and experience to identify your business needs and solve them through effective corporate learning. If you are interested in exploring your learning and development options and how our team can assist you, please get in touch today!