A secret weapon to improve team retention, HRME News, ETHRWorldME

By Ruban Phukan, Co-Founder and CEO of GoodGist Inc

In a recent global impact survey, 94% of employees admitted they would be more loyal to their employer if it invested in their continued progression and development. Additionally, Gallup's State of the American Workplace report highlights that employees feel more engaged at work when they continually learn new things.

If employers can meet this very clear employee demand, they are bound to see better loyalty and longer tenures, because employees will feel valued and see a clear path for their professional development. Plus, from a purely monetary perspective, the other reasons you'd want to consider upskilling are pretty clear: It increases profitability by 23% on average for companies with highly engaged employees.

Unfortunately, while every recruiter dreams of hiring the next great talent, recruiting and onboarding new employees is no walk in the park. Finding a candidate who fits the company culture and has the required skills can take a lot of time. Even then, there is no guarantee that a new hire will adapt to the organization's ways of working. This is why companies need to look at their own teams to close the skills gap.

Let’s take a look at why businesses need to have skills development at the forefront of their minds.

Realize significant savings

It's well established that the potential financial penalty from employee turnover is enormous: Gallup estimates that the cost of replacing an employee can range from 50% to 200% of their annual salary. That's a high price and a financial risk that most companies can't take. These costs can add up when you consider hiring expenses, lost productivity, and the time it takes for new hires to get up to standard.

And it's not just a numbers game: the loss of institutional knowledge when an employee leaves isn't always easy to quantify, but it can really throw a spanner in the works. This is where you need highly skilled employees who step up to take on more responsibilities and complex tasks, reducing the need to recruit external talent.

This internal development strategy may prove more cost-effective in the long run, especially for positions that require advanced knowledge. Quite simply, engaged employees are also simply more productive, using whatever they learn from workplace opportunities and contributing to higher sales – up to 20% more in some cases!

Improving company culture and closing the skills gap

The huge chasms left by employee departures can truly jeopardize a company's goals. Whenever market changes or unforeseen circumstances require rapid attention, existing employees can be more helpful, having developed a range of skills and expertise within the company.

Another underestimated aspect concerns long-term working relationships. These intra-team relationships have the potential to build trust and camaraderie among team members. After all, employees feel like they're more likely to share knowledge and support each other when they're growing alongside their peers. Finally, employees who share this sense of experience are more likely to want to lean on each other.

Development efforts within a company

It's great to talk about the benefits of upskilling, but you also need to have a way to implement it to ensure it actually pays off.

First, you need to identify where the skills gaps are. To do this, you can carry out regular assessments. For example, a technology company may note that its software development team excels in a particular area of ​​coding and project management, but does not have the same expertise in AI and ML. Providing learning opportunities in this area ensures that upskilling efforts are aligned with business goals and market demands, thereby maximizing ROI.

Once this is sorted out, you can make skills development a core part of performance reviews and individual development plans. This shows that your commitment to employee growth is very clear and also helps track progress and define clear career paths. Finally, within the skills development program, regularly monitor the progress of skills development processes and offer employees stimulating missions that expand their capabilities.

External opportunities

Now, upskilling doesn't have to stay entirely within your company: sometimes, partnering with educational institutions and professional training providers can offer your employees a range of learning opportunities. Things can become outdated if you keep everything in-house, so reaching out to these institutions and their online courses, workshops, and seminars allows you to meet everyone's needs. You can also offer benefits for these opportunities, such as external tuition reimbursement.

In addition to colleges and other institutions, there are many experts who can provide targeted training to meet the specific needs of your organization. Just browse Linkedin to see tons of experts who can speak on a variety of topics.

Upskilling is undeniably an essential strategy for creating happiness and improving employee retention. Instead of letting crucial knowledge flow into a rival company's offices, upskilling keeps employees engaged and reduces unnecessary hiring costs. If companies can properly focus on developing their employees, they are more likely to have a highly skilled and loyal and motivated workforce.