According to one study, 40% of employees leave their positions within the first year if they receive poor job training.
That’s a huge financial loss for most startups when you take into account hiring, on-boarding and training costs. Once you hire an employee, you invest a lot into them, so the last thing you want is to lose them because their training was deficient.
To help you avoid employee churn, we look at why employee development is so important for your startup.
Employee development attracts new employees
When you have an outstanding employee development program, word spreads.
Many potential candidates look at your training and development programs as a perk of the job.
Most people don’t want to stay in an entry level job with no chance for advancement. When potential new hires see you offer development programs, they see a path to career advancement.
In addition, offering employee development as part of your overall hiring package can give you a competitive advantage over other companies and help ensure you can hire the cream of the crop.
Your reputation will spread in the hiring community. For example, if a recruiter is looking to place an employee and has two companies to choose from, they’re going to choose the one that offers the most benefits, including employee development.
Employee development attracts quality
Companies that offer employee development programs have a good reputation and attract the best employees.
Offer training, continuing education, conference attendance and memberships in professional organizations, and you will attract employees who want to increase their skills, not just employees who want a job and a paycheck.
Employee development builds loyalty
You want loyal employees just like you want loyal customers.
Employees who feel a bond and connection with your company promote your products and services better, and they’re more apt to stick around.
Your employees also feel safer in their job when you invest time and money into their development. It makes them feel important, and thus you’re more likely to retain them.
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Employee development engages employees
A bored employee is not loyal to your startup because bored employees will look elsewhere for a job that challenges them.
Bored employees are negative and sloppy. They have too much time on their hands and often cause trouble with employee morale.
If you’ve hired well, and you want to keep your staff, you want your employees to be challenged and have a full work day.
By offering employee development options, you’ll keep your employees engaged and prevent boredom.
Training programs have the ability to engage and challenge your workforce making them want to do better at their jobs.
Employee development saves money
Train your employees and provide ongoing development, and you’ll build a pool of bankable employees.
Loyal, well-trained employees want to stick around. This helps you avoid hiring costs.
What’s more, your staff works harder for you when they are more confident in their job. Ongoing training gives them new skills and makes them more proficient.
This saves you money. Just think of employee development as an investment, not an expense.
Employee development creates managers
Finally, you’ll find that employee development programs make it easier for you to hire from within your startup when you need new managers or executives.
Your employee development program gives you a prepared pool of employees ready and eager for promotion.
It also helps you provide training in areas of weakness, so your entire team becomes stronger.
Final thoughts
It’s important to view your employee growth programs and training as an essential part of your new startup.
Create a culture that shows you value employee development.
It’s not optional, and if you neglect your employee training, it will cost you down the road.
Employee development is a capital investment in your new startup and one that will serve you well long into the future.
Want more?
Since 2006, Escalon has helped thousands of startups alleviate the burden, freeing up resources to focus on core business areas activities with our back-office solutions for accounting, HR, payroll, insurance, and recruiting and taxes — and we can help yours too. Talk to an expert today.
