One of the things employees value most from their employers is the opportunity to enhance their careers. An investment in career paths and professional development is a great exchange for hard work and performance.
However, some business leaders worry that building up employees' skill sets will make them more attractive candidates to competitors, potentially leading to their exodus from the organization. Although there is no doubt that top talent is in demand among many industries, failing to prioritize employee growth and career training can have negative consequences for many companies.
In fact, ensuring that the office remains stocked with talented people is so important that US News named investing in development as one of its Top 10 trends for the workplace in 2014. According to the source, job shadowing, mentoring and one-on-one manager meetings may become more popular. Why are enterprises choosing to add such expenses onto their already tight budgets? China Gorman, CEO of Great Place to Work Institute, told the source that it's all about keeping employees on the payroll.
"The best companies realize that continued development and opportunity is key to retention and they are investing heavily in retaining their existing talent," Gorman stated, according to US News.
The cost of employee turnover
Filling a vacancy is an expensive process for any business. In her blog, HR Bartender, HR expert Sharlyn Lauby cited an Allied Workforce study that found the average cost for filling a position is $11,000. When turnover is high, businesses can find themselves spending thousands of dollars on recruiting, a significant drain to company finances.
When new hires need to be brought in, enterprises are failing to conduct quality onboarding programs. The source indicated that 30 percent of companies need a year or more to get an employee to reach peak production levels. Shockingly, one-quarter noted that their onboarding did not include formal career training. Moreover, 60 percent did not set milestones or performance goals for new employees to reach.
This is a worrying trend that simply does not have to be a reality for most organizations. With the right talent management software, businesses can better track employee accomplishments and performance levels to ensure new workers are ramping up at a reasonable rate.
Such programs will make it possible for managers to set goals according to each employee's capabilities. Deploying these tools is a simple way to help guide employee development and show staff members just how much progress they have made.