Employee turnover is extremely costly to any company. The price of replacing an entry-level worker is 30 to 50 percent of the person’s yearly salary. For mid- and senior-level staff members, the cost can hit 150 and 400 percent respectively.
With every departure, there is a negative impact on morale and productivity. Even when so-called a “bad apple” leaves the company, a new employee must be hired, trained and allowed to get up to speed, all of which takes time, money, energy and patience.
The high costs of turnover are why it’s crucial for companies to retain their people, and that starts with a well-designed on-boarding program. Good employee retention efforts continue past the initial on-boarding phase with a robust employee training program that makes employees feel valued and helps them grow as professionals.
The many benefits of on-boarding and ongoing learning
On-boarding and employee training programs do more than just reduce turnover. They provide numerous benefits – translating into a significant return on investment.
Good on-boarding programs reduce time to full productivity, tamp down stress and help support a company’s culture. Employee training programs help staff members stay current with industry changes, keep up with competitors, identify organizational inefficiencies, support employee advancement and help in attracting new talent.
Developing on-boarding and training programs
For maximum effect, on-boarding and employee training programs need to be focused on addressing specific needs. A systematic approach that analyzes performance, devises a solution, implements the program and evaluates the results is the ideal way to develop and implement both kinds of programs.
First, a company needs to use in-house data and insight from management to recognize performance gaps and the skills gaps related to those shortfalls. For instance, a performance gap might be a low amount of new products being brought to market due to a lack of innovation, or production that is not regularly meeting predetermined goals because employees can’t take advantage of the latest technology.
After performance gaps and their related skills gaps have been identified, management must establish desired outcomes of an on-boarding or training program that addresses those skills gaps. Then, company must develop an on-boarding or training program that achieves the stated goals, such as on-boarding programs that incorporate the latest technology.
If departmental managers don’t know how to implement the program, it won’t be very effective. Therefore, effective communication across the company is vital to the rollout of any new on-boarding or training program.
After a new program has been rolled out, it is vital for company leaders to effectively assess outcomes of the program. Considering the amount of investments that go into developing and rolling out a new program, it is important for the company to track the return on its investment and identify ways that the program could be improved.
Are you looking for a strategic partner to help you find and retain top talent?
At Quanta, we support all of our client companies’ endeavors through custom talent acquisition solutions and managed services. Please contact us today to find out how we can help your company succeed and grow.