Many companies assume that investing in the professional development of their workforce isn’t cost-effective. Often, it’s based on the mistaken belief that their employees will seek out opportunities elsewhere as soon as their skillsets improve.
While a few employees may end up leaving the company in time, that doesn’t mean only losses are in your future. In fact, companies usually capture some significant gains, allowing them to come out ahead. If you are wondering how investing in your employees can save you money in the long run, here’s what you need to know.
To put it simply, turnover is expensive. Along with having to cover recruitment costs, you also end up shouldering expenses related to onboarding. Plus, since it takes a while for a new hire to reach full productivity, their team may not achieve its objectives while they are getting comfortable in the role, resulting in additional losses.
By offering training opportunities, you can actually reduce turnover. Employees view professional development as an investment in them, making them more inclined to feel loyal to their employer. If the educational options also come with paths for advancement, then staying can be part of their long-term strategy. In the end, their employer is helping them achieve their career goals, so leaving isn’t a necessity.
Operational inefficiencies harm productivity. While not universally the case, some bottlenecks or workflow stalls occur solely because the worker doesn’t know how to do their job effectively.
When you train your employees, you have the opportunity to correct inefficiencies. Additionally, you can introduce new procedures or strategies in a controlled way, ensuring process updates don’t hinder productivity.
As your workforce becomes more efficient, they can accomplish an increased number of tasks in less time. This allows the company to thrive, ensuring productivity goals are met or exceeded time and time again.
Closing Skill Gaps
Many companies struggle with skill gaps. Often, leaders assume that hiring someone with the required skill is the best option. However, upskilling your existing workforce is actually the better approach.
When you upskill your team, you introduce healthy challenges to the workplace, leading to a rise in morale. Plus, you get to cultivate your ideal workforce, ensuring each team has the exact skills it requires to excel.
Finally, upskilling allows you to future-proof your workforce. If a loyal employee’s job is changing due to emerging technological advances, they don’t have to become obsolete. Instead, you can give them the skills they need to continue in the role, firmly cementing your reputation as an employer of choice for the long term.
In many cases, upskilling your existing team costs far less than hiring a new employee to fill that gap. Along with saving on an additional salary, it can keep your best and brightest engaged, leading to higher morale, productivity, and more.
Ultimately, investing in your employees is a smart financial decision. If you’d like to learn more about how the right training or upskilling program can benefit your workplace, the staff at Apogee Managed Solutions can help. Contact us today.