Why Upskilling Cuts Costs and BOOSTS Productivity
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Employee turnover is bad for business, especially financially. The good news is that there is something simple and easy that employers can do to mitigate staff loss. Upskilling is the process of training existing employees to give them new skills and knowledge that they can put to use in the workplace.
Providing learning and development opportunities to employees increases employee engagement and retention and boosts productivity. At the same time, the company saves on training new staff and adds value to their existing workforce. Moreover, they gain a competitive edge over companies that do not choose to invest in upskilling.
It might not seem like a big deal to have to employ new staff when an existing staff member leaves. However, when you consider the costs of searching for a replacement, training a replacement and lost productivity, then the costs add up. The time lag to train a new employee can take up to two years. Therefore, it makes sense that investing in upskilling current employees to improve your retention rate is far more cost-effective.
When an employee leaves, it disrupts the team and therefore productivity. Furthermore, not every new hire will fit within an existing team, which can cause long-term disruptions to productivity. Upskilling helps to retain employees and maintain the integrity of the social capital at your company. While upskilled employees will have additional skill sets and knowledge to bring to their jobs, they will also have the social networks and relationships needed for a cohesive team.
The number one reason employees want to leave is because they feel stagnant in their role. They want to keep learning, improve their skill sets and increase their value to the company. However, many feel stuck in their jobs and unable to reach their true potential. Offering employees the chance to learn new skills gives them the opportunity to grow. They then feel more useful, empowered and fulfilled at work. Moreover, less likely to want to leave.
Engagement and Productivity
When employees feel stifled in their job, they become disengaged. Therefore, even if they do not leave, their productivity can drop. Employee disengagement also has a widespread negative impact on teamwork, work quality and revenue. According to a Gallup poll, only one in eight employees are engaged fully at work. By providing learning and development opportunities, you can improve employee engagement significantly.
When you combine all of the above points, you end up with a competitive advantage in your industry. While your competitors are off continually finding and training new employees to replace ones that leave, your workforce will be getting on with the job.
Choosing a training provider
When selecting a training provider, there are a few things to keep in mind.
- The qualifications, accreditations and expertise of the institute.
- The structure and delivery of the curriculum.
- Do they offer training to suit your particular business needs?
- Do they offer training in emerging technologies?