What is the cost of losing employees? Approximately 50 percent of new hires will not be with their company within their first 18 months. Having to frequently hire new employees due to lack of retention is very costly.
When an employee walks away from the company, it’s not the cost of the one individual that the company loses; the total cost is much greater. Costs included in the total costs are: hiring a replacement (advertising, interviewing, screening), onboarding new hire (training), loss of productivity (new hire takes time to reach productivity of existing) loss of productivity (turnover disengages employees), and changes in company culture.
Wow, all those things sound costly. You are probably asking, “how can my company avoid all these costs?” Employee development is the key to employee retention. Leading organizations are transitioning from managers meeting with employees only for an annual evaluation cycle to coaching feedback sessions designed to promote the development of the employee.
We created an employee development plan template to help managers and employees communicate and track goals collaboratively. You can adjust the spread to whatever plan works best with your team. Meetings can be adjusted to monthly, quarterly, or yearly.
Here are three ways employee development plans help retention:
1. Employees care if you are genuinely interested in their future
Your employees will gain greater self-confidence knowing that their manager cares about their development. Offering employee development will show the employees that you believe they can be even greater than what they are. Having someone over them will motivate them to work harder. This creates value in the individual and feelings of connection to the company.
2. Job-specific skills will better improve performance and satisfaction
Employees need to be continually developed. Day-to-day tasks will become stagnant. More than 70 percent of employees work in service of knowledge-related jobs. Offering skill development in the employees will increase skill development and increase credibility in your employees. Job satisfaction in the employee will be raised. No employee that loves their job will want to leave.
3. Employee training builds loyalty which increases productivity
It only makes sense that if you development programs it will lead to increased productivity. The employees will want to use their gained skills and knowledge in their field to give back to the company. Employees who have the skill set and passion for the company will lead to more productive workers.
Create an employee development training plan to show your employees their value and help them grow. Through properly investing into your employees, companies will retain their hires and will cut their costs.
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