Consider the cost of employee turnover. With one fewer worker, your company’s productivity slips and sales decline. Your current staff members are required to work more hours. Morale may suffer. To find a replacement, you spend time screening and interviewing applicants. Once you hire someone, you need to train that person. The cost of staff turnover adds up. Figures vary, but it can cost as much as $2,500, depending on the position, to replace a front-line employee. That is a hefty price to pay for not training staff.
Despite the initial monetary costs, staff training pays back your investment. Here are just some of the reasons to take on development initiatives:
- Increased job satisfaction and morale among employees. This has an added benefit of making your company more attractive to prospective employees.
- More motivated workers, which in turn tends to increase productivity and spur profits.
- More effective and efficient use of workers' time as a result of higher skill levels, combined with a better understanding of the job function.
- An increase from employees in the number of ideas, recommendations and suggestions for improving performance, or processes and procedures.
- Lower overall employee turnover, and less absenteeism.
- Investing in employee training enhances the company image as:
- a good place to work
- a company that offers its employees the opportunity to grow and meet their individual goals and aspirations
- a company that values employees
- a company that nurtures its employees