A few decades ago, getting a job and building a career were synonymous. It was commonplace for employees to start at the bottom of the corporate ladder and spend their entire lives climbing, only to retire with a hefty 401k or even a pension plan. Today, the global workforce is so competitive that climbing the corporate ladder with a single company can be tantamount to stagnation.
If companies don't offer enough opportunities for training, advancement or overall improvement, they'll lose their most talented employees to others. This is particularly challenging in industrial fields, where a shortage of skilled labor makes retention more important than ever. How can employers improve retention through job skills training?
How losing talent affects businesses
In an industry, employees will be on the lookout for the opportunities best suited to their career goals and needs. Upwards of half of any given crew could be seeking new employment, even if they seem happy or content in their roles. Most of these changes are driven by a desire for career advancement. Companies realize that improving employee retention is essential to advancing their organizations, but many of them are lost on how to go about it.
Keep in mind that losing a valued employee can cost a company up to 213% of the worker's salary as they find and train someone new to fill that role. Employees don't want to waste their time in positions where they don't feel valued. If there is no room for advancement, they'll simply leave. What sort of impact can employee training have on these statistics, and why does it make such a difference?
Making employees feel valued
People won't stay where they don't feel like they're valued. Employers can do things as simple as giving recognition and doing whatever is necessary to make employees feel like their contributions are valuable. These actions can make an enormous difference in employee retention. Offering comprehensive training, both for their existing position and for new ones in the future, can make workers feel valued.
In addition to employee retention, training programs can improve productivity and efficiency on worksites. Employers who invest in skills development and safety training is an invaluable tool in today's increasingly competitive labor market.
Competing in a volatile labor market
Regardless of the industry, the labor market is incredibly competitive, and companies are always looking to give themselves an edge over the competition. Job training improves more than just employee retention. It also lends companies that competitive advantage by ensuring their team is more skilled, productive or efficient than the one next door.
These training programs also give employees the skills they'll need to secure promotions within the company. That lets them build a career rather than hop from job to job chasing the best offer. Training programs provide employees with the tools they need to thrive in this volatile labor market.
Overcoming labor shortages
The construction industry, in particular, is facing a massive labor shortage. Upwards of 78% of companies state that they've been having trouble finding skilled workers to fill their teams. Companies are hiring new and inexperienced workers just to fill their ranks. Savvy business owners can turn this to their advantage. They hire those inexperienced entry-level workers and train them into the kind of team that can support their company in the future.
It might take some time and might not be the fastest way for the construction industry to overcome looming labor shortages, but it is a step in the right direction. Steps like these could lessen the blow as companies struggle to find skilled workers.
Building the best team possible
Training doesn't stop as soon as a new employee completes their onboarding. When used properly, training programs can improve everything from productivity and efficiency to employee retention.
alt="BIC Magazine Logo">