This is blog was originally posted on talentmgt.com.
Our workplaces are at interesting crossroads between learning how to accommodate a multigenerational workforce and shifting training methods to better fit this new talent mix. It used to be standard practice for companies to initiate training on the employee’s first day, and then taper off around the 90-day mark. But business leaders now recognize the strong correlation between continued employee development (cost) and staff retention (benefit). So where does this analysis net out?
Turnover is costly, and as companies acknowledge training ROI as a pain point, training budgets are on the rise — and in some cases doubling — to counter this issue. Employee development and retention are directly linked, and businesses that have invested more in longer-term training are experiencing higher productivity and profitability, reduced turnover and an enhanced company culture as a result — the latter being exponentially more expensive to fix than any training budget line item.
When factoring in millennials, their preference and desire is to learn at work. An interesting article about managing the young talent from PwC shares from experience that “millennials want to experience as much training as possible. If your organization is more focused on developing high potentials, or more senior people, then you could risk losing future talent if you fail to engage millennials with development opportunities.”
In this knowledge economy, there are few things more important to focus on than employees if you plan to have longevity. It’s the key investment into your company’s future. When leaders enable their team’s future success with new knowledge and learning, employees feel more valued and help shape a positive culture. This leads to a higher retention rate, which equates to more growth opportunities. Evidently, the benefits outweigh the costs.
Read the full piece “Cost-Benefit Evaluation of Continued Employee Training”.