With the joy of business expansion comes the need for new employees, better positions for existing employees, and a hefty amount of on-the-job training. Many organizations choose to get by with a limited workforce until the situation becomes so dire that they need any help they can get.
But this last-minute help can cost them. Employee turnover and the onboarding process can cut into profits quickly; however, these costs seem necessary to ensuring a quality staff. But are they necessary?
Dun and Bradstreet cited research that shows to replace a single manager costs 150 percent of a manager's salary, which means that someone earning $80,000 per year requires $120,000 to replace. There has to be a better way to improve a company's staff.
Spotlight on Talent
One way to reduce employee turnover and limit the cost of employee training is to draw help from the existing employee pool. Some jobs need specialized help, but others can be combined or modified so that existing employees can take advantage of multi-skill positions.
For example, if an employee proves consistent ability to do her job well, then the company could consider giving her additional responsibilities. She might handle some of the company's payroll work while keeping up with managerial expenses and client billing. Relevant tasks can be combined to save manpower. The key is to strike a balance in which the employee feels rewarded without being overworked.
Companies can also reduce the cost of employee training by utilizing technological solutions such as digital interviews and onboarding. Thanks to modern technology, businesses no longer need to spend valuable time on developing traditional resources used in the past.
Many aspects of the training process can be digitized, which can eliminate the paperwork and office space needed for in-person onboarding. It also can reduce the amount of time a manager needs to spend training her staff, which can significantly decrease the cost of hiring a new employee. Investing in a technological makeover where onboarding is concerned could save a company thousands of dollars annually when it comes to employee training.