The Value of Training Current Employees vs. Hiring New Ones

Posted by Des Sinkevich on August 30, 2021

As the economy slowly paces toward recovery, adding 943,000 jobs in July, employers in many industries are still grappling with an unprecedented worker shortage. With over 13.6 million job posts remaining open for a month or longer, companies across the country are attempting to attract new hires by offering incentives above and beyond the standard benefits packages.

But coupled with the normal costs associated with recruitment and hiring, using quick strategies to attract talented employees to your company can have a negative impact on your bottom line. Instead, investment strategies like upskilling and training existing workers to fill different roles can provide a viable and cost-effective way to increase productivity, employee retention, and eventually serve as a method to attract new hires to your company. Here’s how.

man using laptop near hand tools.

The long-term value of offering training programs to employees

Investing in training initiatives isn’t a new concept – but as the worker shortage continues to affect performance for both employees and employers, implementing a training and education program is imperative to future success. Providing education opportunities to your current workers ultimately benefits both you and your staff. An effective upskilling strategy can

  • Increase employee retention. Employees who work for an organization that doesn’t offer opportunities for growth within a career path are often more likely to search for a job elsewhere. According to Global Talent Monitor, 40% of employees say they left a previous role because there was a lack of career development within the company. By providing clear opportunities for growth and viable career paths, you can increase employee satisfaction, which increases retention.
  • Increase productivity. Well-trained, confident employees are able to better perform their day-to-day job duties. 80% of employees who took advantage of training opportunities through their employer said upskilling made them more productive in their role. The more productive your staff is, the more your business can grow its bottom line.
  • Create a strong internal talent pool. Promoting from within is a great strategy for building employee loyalty while also creating clear career paths for your workers. It also encourages workers to take advantage of your training programs, promotes brand and company loyalty, and boosts morale. Through an effective training program, you can prepare workers to become confident leaders who are qualified to move up in the business.

Aside from the benefits you know about that come with offering learning and development programs, you’ll also build a means to attract talented hires to your company. More and more, workers in every industry want to work for companies that provide education and development opportunities, as well as clear potential for advancement within the company. 87% of millennials rate professional growth and development opportunities as important to them in a job, while 94% of workers say they’d stay longer at a job if the employer invested in employee development.

By offering a clear path toward advancement, you’ll have a stronger talent pool to choose from, build a company culture that attracts new hires, and ensure your current workers are set up for success.

Create opportunities for employees with training from Penn Foster

While it’s clear that training solutions and career development are essential to building a successful, loyal workforce, dedicating time and human resources to developing internal training materials can take more time and people power than you have available. That’s where a trusted partner like Penn Foster can help. With flexible, online training in a variety of in-demand skills and industries, including high school completion and college courses, you can choose the programs that work best for your goals and can make the most impact with your staff. Whether you’re a small business or a large corporation, our digital training solutions can meet your needs. Reach out to speak with a Penn Foster training expert today to learn more.