In my last blog, Upskill. Reskill. Repeat., I wrote about organizations needing to create a culture of continuous learning, especially in these times of rapid technological advancement, as a means to stay competitive through a future ready human capital. I also wrote about how JindalX ‘s proprietary LMS is helping us achieve that objective through self-paced and value-based learning. Taking that thought a step further, this article delves into how a culture of learning can help organizations meet another pressing challenge – talent retention.
Why is talent retention so important for an organizations?
Let’s first answer this fundamental question. From an organization’s perspective, there are two costs involved in letting go of a current employee and hiring a new one – monetary costs and non-monetary costs.
Global studies estimate that for each employee you lose, it will cost the organization up to 33% of their annual salary to replace them. These costs may include salary expenses and benefits to be paid out, recruitment and onboarding costs associated with a new hire etc. These are costs that are immediately quantifiable. However, there are other real costs to account for. A replacement hire will not be immediately as productive and may make mistakes while being brought up to speed. This may adversely impact the bottom line and more importantly, customer satisfaction ratings. Employee turnover is also likely to impact team morale and overall workplace engagement, thereby impacting workplace camaraderie and culture.
Companies cannot prevent employees from leaving for personal reasons of seeking change, moving to a different location, more money etc. However, there are ways to foster stronger bonds and greater loyalty within the workforce. One key way is through Trainings.
How can training help in retention?
Training adds value for both – the employer and the employee. The simple fact that it adds value for both, makes it one of the key ingredients of employer and employee success. Let’s look at how:
Value for an employee:
Employees want to advance professionally. It’s human nature to want to be challenged, to learn, to evolve and grow. If employees feel that their role is not evolving and that they are not learning anything new, chances are their motivation will start to diminish. They also need to know that the company is as invested in their professional growth as it is in increasing its bottom line. According to a recent LinkedIn’s workplace learning report, an overwhelming 94% of employees surveyed said they would stay with a company longer if the company invested in their career development. It not only assures employees of a clear career growth path but also inculcates a sense of loyalty towards the company, where they are more willing and happy to go the extra mile at work.
Value for an employer:
I addressed the importance of continuous training of human capital as a means of maintaining a competitive edge for organizations in my earlier blog Upskill. Reskill. Repeat. In addition, companies also save on huge costs, both direct and indirect. Learning as a culture is a strength that attracts not only quality talent seeking employment at companies committed to employee growth and success, but also attracts serious customers who view learning and upgrading of employee skills as the company’s commitment towards client success.
Growth and Opportunity – a JindalX core value
At JindalX, we are fully committed towards providing opportunities for growth and career advancement for our employees. We are proud of our learning culture and even prouder to have a big percentage of tenured employees who have built a rewarding career over the years with us and are an integral part of the JindalX family.