Did you know that according to LinkedIn’s Workforce Learning Report 94% of employees say they would stay at a company longer if it invested in their learning and development. This means employee training is no longer optional if you want to retain your talent.
A strong commitment to employee training by management sends the message that it values education and growth and this creates an environment where more employees feel wanted and needed. And who doesn’t love feeling wanted and needed?
This report goes on to say training is particularly important to young workers with roughly 25% of Gen Z and Millennials ranking learning as the #1 thing making them happy at work. It also states lack of learning and development is the #1 reason they’d leave their job.
Failure to Budget for Employee Training Leads to Business Sabotage
The failure to budget for employee learning and development is the equivalent of business sabotage. The financial losses in a business span from decreased productivity, increased safety issues, increase in hiring costs to replace employees that quit, to increased health care claims, and to a less competitive edge in your industry to name a few.
Research by SHRM suggests that replacement costs alone can be as high as 50%-60% with overall costs ranging anywhere from 90%-200%. Example: If an employee makes $60,000 per year, then it costs an average of $30,000 – $45,000 just to replace that employee and roughly $54,000 – $120,000 in overall losses to the company.
It’s no longer acceptable to dismiss the importance of ongoing training of employees and frankly, you cannot afford NOT to make this a priority.
Why is Employee Training Undervalued by Business Owners?
Most of the time training isn’t truly undervalued and it doesn’t happen because owners are unaware, greedy, or cold-hearted. It happens because they are so caught up in the daily challenges of running the business that subsequently training falls down the list of priorities. They simply don’t have the time it takes to plan and develop a training program.
What is the Solution to the Employee Training Deficit?
The options can range from simply making this a priority and tasking management with training, or increasing your HR department if management can’t handle the workload. However, for business owners already drowning in more work than they can handle, this is a daunting endeavor. This presents another choice. You can outsource and partner with an HR agency.
AZ HR Hub exists for this very reason. Business owners are inundated and need help and they needed it yesterday. We specialize in immediately bringing the relief and expertise that is needed to develop an employee training program.
Here’s what one of our clients has to say about working with us.
Bringing on AZ HR Hub has been one of the best things we have done from a business operation perspective. They have been able to alleviate so many tasks (onboarding, paperwork for all the states, payroll, and the list goes on and on) it has allowed us as business owners to focus more on our core business. If you love doing all the HR work for your business fantastic, but if you would rather be able to put that time and energy into focusing on your core business functions then give AZ HR Hub a call. ~ John Adams
The Bottom Line
If you’re losing employees, it’s probably because you failed to give them a reason to stay. Well-trained employees are loyal, happy, and thriving employees.