By Jan Tomasik of Common Sense Solutions
As the person responsible for bringing on new team members, I pay attention to the job market and the government’s monthly jobs report. As of the writing of this article, 313,000 new jobs were added last month, and the current unemployment rate is 4.1% (2.3% for college grads). That’s good news for the economy, but if you’re like me – and a number of clients I talk to – the shrinking employment pool is making it tough to hire qualified employees.
So where do you find a qualified employee? Most business managers won’t hire an unqualified employee, but many will employ an under-qualified worker with the intention of training them once they come on board. And then reality happens …
The new employee is too busy to take time away from their activities to train. Or money might not be in the budget to pay for training when the timing is right. Failed prior training could be a factor when training was done poorly or the topics didn’t match the need. Failed training comes at a high cost and some businesses just don’t want to take the risk.
However, not training your employees also has a cost. Here are some factors to consider:
Untrained Workers Are Inefficient. More time, money, and effort is spent when employees aren’t properly trained to perform their jobs. It takes them longer to do their work.
Untrained Workers Have A Lower Production Value. The quality of work produced by an untrained worker is lower than it should be.
In a study of more than 3,100 US workplaces, a 10% increase in educational development produced an 8.6% gain in productivity (The National Center on the Educational Quality of the Workforce)
The Cost of Mistakes. When a worker makes a mistake, time and materials are lost when the work has to be redone. And even worse, a less skilled resource may frustrate the client with their poor quality work, causing the client to leave.
Companies that invest $1,500 on training per employee can see an average of 24% more profit than companies who invest less (Right Management).
Trained Employees Are Happier and Stay Longer. Employees who feel underutilized and undervalued are less satisfied in their jobs, which spirals into under performance, errors, and not caring about the work they do – all resulting in lost time and money. If they leave, the cost of replacement is expensive. You probably won’t be surprised to know that the most sought-after professionals are constantly networking and looking for better opportunities, making employee retention more challenging.
- 40% of employees with poor training leave their jobs in the first year (go2HR)
- 63% of employers say they feel they have to pay workers more because the market is getting more competitive for talent (CareerBuilder)
- 80% of HR leaders think their organizations will be affected by scarcity of talent this year (Randstad)
- And even after reading these statistics, only 34% of companies focus on developing and retaining current employees (American Management Association) .
Put your money where the mind grows. Take a look at those areas where training will increase productivity and efficiency, limit errors, and help your employees grow. And if you find that it’s ComputerEase training that the doctor ordered, check out our Boost Camp in July. It’s loaded with training opportunities and reasonably priced to maximize your training budget. www.cssworks.com/boostcamp