By: Catherine Plano
Losing an employee costs thousands of dollars. You know that, right?
When you factor in downtime, reduced productivity, interviewing, hiring and training, plus all of the administration costs involved, employee replacement costs look something like this:
- Entry-level employees cost about 30% of their annual salary to replace.
- Mid-level employees cost about 100%.
- Senior staff, or people with specialised skill sets, can cost more than 300% of their annual salary.
The fact of the matter is that employees will leave if they feel undervalued, feel they are missing out on skill development opportunities or don’t have the potential for career advancement.
So, why are some companies still dragging their feet and refusing to invest in developing their people?
Don’t Think Cost – Think Value
The real cost of insufficient personal and professional development equates to unmotivated and disengaged employees.
When employees are less engaged in their work, they require more supervision; they tend to make more mistakes and cost employers even more money.
On the other hand, engaged employees are invested in what they do and are committed to their own success and to the success of the company. They will go the extra mile. When employees know that their employer values them and wants to invest in their future, they automatically become more engaged and motivated. It’s a win-win. In return, the organization will see higher productivity, higher profitability and higher customer satisfaction.
Employees feel fulfilled and engaged when they are encouraged and equipped to contribute to the company’s overall mission. It gives them purpose. They understand and are committed to ‘why’ they are doing what they are doing. When they are given the necessary educational tools to participate, they become more motivated to help the organization work toward its goals and will stay longer at the company.
Time Is of the Essence
Time is running out.
It’s a given that many companies run "tight." In other words, it’s often not the direct cost of the courses themselves, but the time commitment required that contributes as a hindering factor in taking up learning opportunities.
Enter Online Training
Online training is a flexible solution that allows for people to conduct their own learning in their own time. Moreover, it’s proven to be not only a highly desirable way to learn, but a highly successful method too.
- 70% of leaders are turning to online search engines for information on performance management, strength-based leadership, time management, influencing others and how to handle difficult situations.
- 57% of directors say face-to-face training is not meeting their needs.
- 7 out of 10 leaders use mobile devices to access learning, in the office or on their way to and from work.
- 75% of leaders say online learning will help them do a better job. They like online learning because it’s convenient, it can be done anywhere, and it’s self-paced.
Online training does not provide the fantastic benefits of socialization and networking that traditional courses provide, but this gap is adequately supported by social networks. These can also be developed online through social media groups and other online "meet up" avenues that provide a way for people to log-in and share their ideas, opinions and insights.
Let Your Leaders Take Charge of Their Learning
It is essential that your company leaders understand that they are part of a positive corporate learning culture. This is the group of employees that are often paving the organization's way to success. By having a virtual network and access to online tools and resources, they can stay focused to produce results, even when they are under pressure. Furthermore, by having time to step back and reflect, they are better able to focus on activities that are at the heart of what they do. As a result, the more tools and time they have, the happier, more engaged and more productive they will be.
Empower Your People
Nothing kills engagement like not having the authority or resources necessary to do the job at hand. Naturally, if your employees feel powerless, frustrated, or micromanaged, they will be less effective.
The fastest way to capture the hearts and minds of employees is to make them feel valued and motivated.
Investing in employee development is a simple strategy that makes good business sense because it will increase your people’s loyalty to the company, encourage and facilitate them to stay longer, and allow them to build bench strength at the same time. Consequently, you’ll have a highly engaged team of productive employees working to advance the company as a whole.
Originally posted on CatherinePlano.com.
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Catherine Plano is an International Executive Coach, Keynote Speaker, Leadership Development and Facilitator. She's the Director of Quantum Co-Creation PTY LTD, and Editor-in-Chief of I am Woman Magazine, which she created to enable women to live a life of abundance, whether it is more love, health, wealth, happiness or success.
Ellevate Network is a global women’s network: the essential resource for professional women who create, inspire and lead. Together, we #InvestInWomen.