Human capital, a company’s largest asset and also expense, is the modern corporate chicken-and-egg dilemma. While companies spend millions or even billions of dollars building an employer brand or recruiting to fill open positions, they are just filling a leaky bucket as good employees leave organizations, hurting company productivity and earnings more than ever before.
The elephant in the office is a piece of your company’s retention plan you might not expect. So, while HR is mandating employee focus group meetings and annual employee surveys, the skills gap problem quietly and yet obviously looms at your workplace. Let’s train and develop our employees.
This year, 75 percent of employees surveyed by Cornerstone OnDemand said they had not received training and development to better perform their role in the past six months. This seems counter-intuitive to me, since companies are spending an enormous amount of time, money, and effort to woo top candidates and qualify employees, only to forget to develop and train employees after the new-hire honeymoon ends. A balance between recruitment and retention has to be found.
Employee retention and skills training takes work. There is also no guarantee. Just like any type of investment, there is a risk and nothing is certain. What is certain is that pouring more money into your employee recruitment efforts while ignoring employee development and training programs lowers common hiring and recruitment metrics like cost-per-hire and time-to-fill.
Certainly, a company needs to leverage pre-employment hiring strategies to better improve the quality of hire, but equally important is the need to continue to engage, focus, and develop that employee after he or she has settled in.
Employee skills testing, skill evaluation and training programs, in addition to your company success plan, can work together toward creating a learning and development process that is catered to each individual knowledge worker and employee. It really has to happen and now, especially since only 19 percent of those same employees said that their employer’s performance review helped them increase their potential through education and training.
The challenge with addressing the skills gap and the elephant in the room is that as a boss or manager, there is risk. Sticking your neck out for your team and muddying up the waters takes guts, but I guarantee that your direct reports will pay you back in full, improving employee productivity and lowering turnover. This will make your job easier in the long term. I guarantee it.