Employee retention is an issue that’s not often discussed when it comes to online training. However, online training can be one of the factors that will help keep employees within your organization happy and motivated. Before we get ahead of ourselves, let’s have a closer look at the problem. It’s a lot bigger than you might think.
The Big Problem
According to this article from the University of North Texas, the U.S. Department of Labor has reported “the cost to replace an employee is one third of a new hire’s salary.” Additionally, other researchers have reported that “replacement and training costs range from 1.5 to 3 times the individual’s annual salary”.
This is definitely food for thought when you’re put in the position of maintaining a qualified staff. Knowing the reasons that keep your employees happy is the first step in maintaining staff.
In article in Forbes, Jacquelyn Smith states that the overwhelming reason that younger workers stay with a company is because of the prospect of career advancement. Right or wrong, this generation need to feel that there is a possibility for advancement within an organization or else they’ll become wary and look elsewhere for a place that can satisfy their ambitions.
This tells us two things:
If given the opportunity for advancement, today’s younger workers will go beyond your expectations and excel at their work
Today’s employees need to be given the tools in order to become better workers. Without these tools, they become restless, bored and eventually leave.
According to the Institute for Retail Excellence, “as much as 20% of turnover can be attributed to poor or no training.
Taking the above statement in mind, there is an enormous opportunity to stem the flow of employee turnover by providing a better training solution. Each subsequent generation has higher standards because everywhere around them in their personal lives they see how technology can be a force for connecting and empowering large groups of people. A two-inch binder with color inserts doesn’t have the same impact.
A better solution would be to take a good look at your current training program and ask yourself, “Is this something I would like to take?” and “Does this course facilitate knowledge-transfer as well as it could?”. Employees can’t advance if the tools to do so are working against them.
In addition, having a repertoire of internal training courses available on your online training software gives the motivated employee the tools they need for personal growth within an organization. Giving an employee an opportunity to prove themselves — not only at the position they’re currently at but also where they see themselves — creates a happier and more motivated workforce.
Other Important Perks
There is a bigger picture in which elearning has the potential to greatly improve workforce development. The American Institute of Business Education states that:
According to Fortune Magazine, training that typically would take 6 to 9 months can be compressed to 2 to 3 weeks, thereby guaranteeing faster time-to-market for products. After the initial infrastructure and development costs are met, the marginal cost of serving additional students is close to zero. For example, Cisco Systems’ e-learning manufacturing programs have produced savings of $1 million per quarter, producing an 80% increase in speed to competence.
A workforce that is happy and motivated is one that performs well under a variety of circumstances. Giving employees custom online training that is compelling and challenging does far more than printed documentation ever can. Giving them the tools they need to better themselves seals the deal.
If you’d like to know more about how the online training that can better your organization, download our free ebook “Learn How To Create Performance-Based Elearning”