Training is one area where companies (especially in high-turnover industries) are sometimes loath to make significant monetary investments. They may think, “Why put that much time and effort into an employee who might be gone within 12 months?”
That mindset focuses on the cost of training but fails to recognize its benefits; namely, that effective training can patch a leaky employee pipeline. The key to productivity isn’t spending less money on the employees who leave; it’s spending the right amount of time and money on training that keeps them from leaving. Over time, training more than pays for itself in terms of both money and time.
Why Virtual Training is the Best Solution
Before we discuss the cost of training versus the cost of staff turnover, let’s explore why virtual training, specifically, might be the best solution for your business.
Firstly, it’s more affordable. Studies suggest that employers can save up to 40% in expenses for when they choose virtual learning options. Without question, it is the most cost effective training method.
Secondly, it’s more effective. The American Institute for Research claims that eLearning boosts retention rates by 25% to 60%.
Lastly, employees prefer it. The statistics around virtual work are very telling and can easily be projected to virtual training:
- 54% of adults want to work remotely most of the time even after the pandemic.
- Remote work can increase productivity and engagement up to 13%.
- Remote work can cut attrition rates by up to 50%.
Training Saves Money
According to the Center for American Progress, it costs businesses about one-fifth of a worker’s salary to replace that worker. The costs are usually incurred in relation to recruiting, hiring, and training new team members. Then there’s the cost of lost productivity, which we will further discuss. That’s a costly percentage, especially for companies who typically experience high turnover and/or who have to replace high-paid, high-level executives.
Proper training impacts employee retention by instilling a sense of belonging and worth in team members, as well as imbuing them with the confidence to do their jobs. Employees who feel like they’ve been left to work out their responsibilities and the company’s policies and procedures for themselves often become frustrated and unwilling to invest their time and effort into a company that didn’t invest in them.
Training Saves Time
Staff turnover always results in productivity losses as well, due to the unavoidable work gap that occurs between the time a team member leaves and his or her replacement is hired. Also, every new hire takes some time to get up to speed in their new job. Some companies suggest that it takes at least one year, possibly up to two years, for an employee to be fully productive. Imagine how much time you can save in that acclimation process through thorough training. And as we all know, time really is money.