|Training That Pays For Itself|
This is the abbreviated version of Dan Bobinski's weekly newspaper column. You can read the entire column here
Too often companies look at training as an expense: A necessary evil. Some company leaders even view it as a waste of time. One time a business owner even said to me, “Why should I train my people only to have them quit and take all that training that I paid for over to another company.” I shook my head. Not only did he not see it, he didn’t want to see it.
I can’t go into all the details in this short memo (the full column has more info), but let me try this quick overview:
1. Research is clear: In organizations where training is considered poor, 41% of employees plan to leave within a year. But in companies where training is considered good, only 12% plan on leaving within a year.
2. This means that companies where people get good training have a 29% percent better retention rate, on average.
3. The cost of replacing an employee averages $38,000 nationwide.
Now do the math. Provide decent training and have 29% less turnover. Multiply the TOTAL costs for replacing an employee times 29% of your workforce, and you’ll see what no training could cost you.
My guess is that the cost of training is far less than the cost of not training. Think about it.