“Employees who believe that management is concerned about them as a whole person – not just an employee – are more productive, more satisfied, more fulfilled. Satisfied employees mean satisfied customers, which leads to profitability.” –Anne M. Mulcahy
The average job tenure for American workers is 4.6 years, but for technology workers, that number slips to around 3 years. Finding and training a new hire (which some estimates peg at about 20% of the employee’s salary, not counting the lost productivity from the rest of the team) is a costly venture. Constantly losing and adding team members can have a tremendous impact on the productivity of the workplace. However, one way to boost your bottom line while reaping the benefits of a well-trained, loyal workforce is to offer education and training programs.
Ways It Pays
The Association for Talent Development’s recent report on education in the workplace noted that companies spent about $1,229 per employee in 2014. Unfortunately, smaller companies may tend to skimp on education programs. This is a mistake, since offering continuing education opportunities has a strong, long-term payoff. The most obvious boost comes from a more well-informed workforce that is already familiar with the company’s current systems. Employees are also more likely to appreciate your investment—and stay. Providing continuing education programs shows employees that you are invested in their success, which not only improves your company’s culture, but also attracts high quality job seekers. Technology workers frequently cite the opportunity to learn as one of the most attractive aspects of a position, so providing training on new technologies or offering continuing education options can increase the quality of your workforce. Companies may choose to offer reimbursement for virtual courses or some tuition assistance can also be beneficial. For example, the National Bureau of Economic Research noted that “Tuition assistance programs appear to allow firms to hire better quality, more educated, more productive, employees.” NBER research showed a strong link between low employee turnover and a company’s investment in employee education.
What To Do
Offering a continuing education program is essential to your company’s success, and developing one that is right for your company depends on the educational needs of your business. For example, some companies build relationships with local universities and colleges, so that employee education is easily available and reasonably-priced. Degree programs typically take several years to complete, as employees attend night or weekend classes. A short-term option might be to invest in a certification program for your employees. Certifications can hone in on one very specific area or technology your company needs, and the programs typically take less time than degree programs. Paying for employees to attend college or university is typically done on a case-by-case basis. What if you need a whole team to learn a new technology? Bringing in specialists to offer training can also pay off, and you can be sure that all of the employees in the class have attained “knowledge parity” (they were all taught the same material). The benefit of having all employees in the same class is that they can also work together on troubleshooting issues in class and directly apply what they have learned. However, not all companies can afford to bring in instructors or pay for degrees. Virtual classes or MOOCs may be an alternative. There are many free online resources that businesses can access, including courses from MIT and Microsoft. There are also sites that offer a range of training courses for a small fee.
Regardless of the choice for continuing education, businesses that offer learning opportunities reap the benefits of a more highly-trained workforce, satisfied employees, and increased productivity. If you have questions about how your continuing education program can help attract better employees, or you are interested in finding talented job applicants for an open position, contact us today.
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