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Learning and Development: Do Employers Get a Return on Investment When Investing in Their Employees or Should They Try to Hire Outside Their Workforce?

  • On 4th Jul 2020
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Story by: Learnerus Lifelong


Companies have an interesting decision to make when it comes to filling their needs for specific roles in their corporation. It can be extremely difficult to find suitable employees for hard-to-fill positions. Rather than invest time and money searching for the perfect outside candidate, companies are turning to the employees they already have instead in hopes of creating the perfect fit.


When hiring outside the company, businesses can never be certain what they are exactly getting. Who knows for sure if these individuals actually possess the skills needed for what role they are being hired for? Plus, will they mesh well with the rest of the workforce? Rather than take the risk, more corporations are realizing they already have the perfect people for these positions and they currently work for the company. All the employees need is a little more learning and development that is tailormade for that particular job.


According to the 2017 Workplace Learning Report that surveyed 500 learning and development professionals, 80 percent believed developing their current employees and investing in their future is a top priority. This is especially needed as 90 percent of those surveyed noted a significant skills gap that can be met through learning and development training. The key is to approach learning and development smartly and determine which style is more suitable for employers and employees: on-site training, classroom experience, or online guidance.


There Are Financial Benefits to Investing in Learning and Development for Current Employees


Most companies have a certain number of ideal employees already on their staff. These are people that always seem to contribute in a variety of ways that make them stand out above the rest of the employees. Rather than keep them in their current position, why shouldn’t you reward them with a promotion as long as they acquire the skills needed?


Improve Employee Loyalty


In the 2018 Workplace Learning Report, it was revealed that 94 percent of all employees said they would stay at their current company if their employer would invest in their career development. Most employees feel as if they can contribute more if just given the opportunity. By making a financial commitment to the people who already work for you, you are essentially validating that they are important to the company’s success.


Limit Financial Loss


Gallup in 2016 reported that there is a high work turnover rate, especially among millennials. The workforce consists of about 38 percent of millennials, so this could be bad news for company’s that are not invested in their employees. It is estimated that employee replacement costs are about 150 percent of a worker’s salary when everything is factored in such as benefits, insurance, retraining, and wages. In the United States alone, turnover rates cost businesses about $30.5 billion every year. Rather than just having to eat those costs, companies are learning to instead keep on reinvesting into their existing workforce.


No Waste: Learn the Exact Skills Needed


Rather than randomly have employees continue their learning and development through a mixture of programs, company’s can focus on investing in the exact skills needed for their current open positions. For instance, LearnerOn.Net offers specified Learning Paths with detailed courses that center around strengthening the required skills and abilities for hard-to-fill jobs.


Organizations are recognizing the value of this, too. About 30 percent of companies are increasing their learning and development budget that will promote current employee growth so there will really not be a need to hire outside the company.


Technology Is Key


Every company is recognizing automation is going to play a huge role in the future. Technology is evolving at a quick pace in the workplace and if company’s are not investing in technological advances, then they are only hurting themselves. With programs such as LearnerOn.Net’s Learning Paths that focus on upgrading tech skills, companies are able to stay ahead of the need and instead be a leader in the field by empowering their employees to guide the way.


Hire the Best and Brightest - or Make Them From Within?


While there is always a need to bring in new hires every now and then as workers do retire or get promoted, companies can reach out to the best and brightest and entice them to join the business by offering future training programs. A person will be more likely to join a company if they know from the beginning that they can move up the ladder if they work hard and further their education through training programs. Knowing that the organization is willing to invest its resources in its employees is a great tool to use when trying to hire the right individuals. And if a training program is not currently in place, these companies can use options such as LearnerOn.Net as they already have online Learning Paths created for many diverse situations. The thousands of courses available will fulfill all needs for employers and employees alike.


The Investment Should Definitely Pay Off Well


By companies promoting from within through investing in learning and development programs, they will be saving themselves from financial losses down the road as they otherwise would not be able to fill the needed positions. In addition, being able to keep loyal employees happy and with the company is priceless as there won’t be any downtime or employee turnover.


The goal is to be able to have qualified individuals to fill each role as the need arises rather than respond and react while trying to play catch up. Through LearnerOn.Net providing the online courses, Learning Paths, and skills, companies can stay ahead of the game by investing first and reaping the benefits continually down the road.


Yours relentlessly walking on the beaten Learning Paths,


Learnie


Originally posted on Medium

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