Employee retention — it’s a phrase that’s front of mind for many L&D departments, HR professionals and senior leadership teams. Recruiting top talent can take time, resources and money, so why not skip all that by retaining the talent you have?
One way to retain your best talent is to invest in training and development — the benefits are almost endless. To find out what some of these are, keep reading for everything you need to know about employee retention via training and development.
Why does employee retention matter?
In a highly competitive job landscape, where the power is shifting more into the hands of employees, keeping your staff happy is more important than ever.
Talent shortages and workforce expectations are growing steadily, with many employees choosing to ‘job-hop’ to find the best work-life balance, pay and added benefits such as training and development.
If your employee turnover is high, you’re likely experiencing higher recruitment costs, reduced productivity due to constant transition and onboarding, potentially damaged morale and even rocky customer relationships.
None of this is helpful if you’re trying to grow a successful enterprise.
Employee turnover is costly. Replacing an employee can cost up to two times the employee's salary.
How does training and development help employee retention?
So, how does training and development come into the picture? Cohesive, strategic training and development programs can be the difference between your employees staying and prospering or leaving and taking their skills elsewhere.
Employee retention and training and development have a symbiotic relationship that benefits your business.
Essentially, they all stem from the fact that investing in training and development for your organization signals to your employees that you’re dedicated to their professional development and value them. Off the back of this, many other organizational benefits come to light.
Let’s take a look at what some of these advantages look like.
1. Build a positive culture
Employees who feel valued and respected by their organization will foster a positive workplace culture, which will enhance employee morale and retention as opposed to a workplace that isn’t invested in its people.
Turnover due to culture may have cost up to $223 billion in previous years.
2. Cultivate loyalty
Investing in your employees' professional development through training and upskilling will display commitment, which many employees will reflect by remaining loyal to your organization. Employee loyalty can mean higher retention, saving you the hassle of recruiting and retraining employees.
3. Tailor skills that are mutually beneficial
Training programs can upskill employees, completely retrain or provide new skills. Not only is this beneficial for your employees' career development, but it’s just as important for your organization.
You can identify the skills needed to progress your business, fill any skills gaps, enhance employee knowledge and increase competence. Employees who feel more confident in their roles and valued by their employers are much less likely to seek employment elsewhere.
4. Foster and retain top talent
A strong culture, investment in learning and commitment to professional development will help foster, retain and attract top talent. Current and prospective employees want to work somewhere beneficial for them and their values, which is why a focus on training and development is so important.
According to statistics, a lack of growth and development opportunities is the number one reason employees leave.
5. Enhance employee engagement
While your employees may have no desire to move elsewhere, keeping them engaged is still crucial for the success of your business. Employee engagement goes hand-in-hand with training and development and employee retention, another reason why it should be a top priority.
6. Competitive advantage
Finally, retaining the best talent and investing in their training and upskilling will help you grow as a business, bolstering your competitive advantage. High-performing businesses have high-performing teams from a culture of continuous learning and development.
Finding the right training and development partner to improve employee retention
Now you know just how important developing a training and development program is for employee retention, it’s time to start considering a partnership.
While you can roll out a strategic training and development plan for your organization in-house, working with an established partner removes much of the hassle.
If you’re unsure who to work with, explore our comparison guide for the right digital skills provider. Remember to look for a proven track record, engaging content, innovative processes, and tailored reporting and support.
Looking for more insights?
There’s so much more to discover — this is just the tip of the iceberg. Want to learn more about learner engagement and how it impacts your employees, training programs and growth plans? Our learner engagement hub has everything you need to know.