Help people move up or they will move out

Help people

move up or they will move out

When budgets get cut, employee

training is usually the first thing out the door. "I can't afford

to train my employees," they say. "We can't afford to train

our employees." Worse, they may be reluctant to invest in training

because they believe employees with more skills will demand more money.

"I'll keep them ignorant

and not pay them more" pretty much sums up this attitude.

These organizations are ignoring

the fact that the more they invest in their people, the more productivity

and loyalty they get in return.

But all organizations that

are serious about productivity and retention should consider investing

resources back into employee training and development.

Satisfying this desire with

training accomplishes personal and organizational goals. Trained employees

are more capable and willing to assume more control over their jobs. They

need less supervision, which frees management for other tasks.

Employees are more capable

to answer the questions of customers, which builds better customer loyalty.

Employees who understand the business complain less, are more satisfied,

and are more motivated. All this leads to better management-employee relationships.

Do employees value training

opportunities? A survey my organization conducted this year shows some

interesting facts. As expected, half the organizations surveyed cut back

on training. The most striking information came from the employees themselves.

We asked them, "Would you quit your job to take another job with

the SAME pay and benefits if they provided better training and development

opportunities?"

The answer--55 percent would

LEAVE their present employer for better education and training opportunities.

An American Management Association

(AMA) survey of 352 HR executives also confirmed that skill enhancement

issues were of top importance to employees. "Investing in employees'

future is more important than immediate compensation," said Eric

Rolfe Greenberg, AMA's director of management studies. "Programs

that improve work skills and future career development are seen as particularly

effective."

The AMA survey identified the

following skill enhancement techniques and the percentage of organizations

employing them as a retention strategy:

Skill Enhancement Issue Used

in Organizations

External conferences/seminars-78.1

percent.

Tuition reimbursement-67.3

percent.

Managerial training- 66.8 percent.

Company support for degree-62.2

percent.

Interpersonal skills training-56.8

percent.

Technical training-54.5 percent.

Employability training-35.2

percent.

Organizations that continue

to increase spending on training are more likely to meet the technological

requirements of their business.

In a study of more than 3,100

U.S. workplaces, the National Center on the Educational Quality of the

Workforce (EQW) found that on average, a 10 percent increase in workforce

education level led to an 8.6 percent gain in total productivity. But

a 10 percent increase in the value of equipment increased productivity

just 3.4 percent.

The ASTD study showed that

"leading-edge" organizations trained 86 percent of employees

while "average" organizations trained only 74 percent. Leading

edge organizations also spent twice as much per employee.

In addition to retention and

productivity, organizations that care about employee development make

a lasting impression and earn lasting loyalty.

Years ago when I was in the

military, I took the time to coach one of my soldiers on getting a college

education. We would sit down regularly to discuss his plans for the future.

When we were transferred to different organizations, we lost track of

each other until years later, when Sgt. White called me.

Sgt. White had taken my advice

and gone to college. Now the Army was promoting him, and my interest in

his future had made such an impact on him that he wanted me to come to

Ft. Bragg, North Carolina to pin on his new rank. This was a great honor.

I've never forgotten what he told me: "Sir, you were the only officer

who took the time to help.

Greg Smith is a nationally

recognized speaker, author, and business performance consultant. He has

written numerous books including his latest, "Here Today, Here Tomorrow:

Transforming Your Workforce from High Turnover to High Retention."

He has been featured on television programs such as Bloomberg News, PBS

television, and in publications including Business Week, USA Today, Kiplinger's,

President and CEO, and the Christian Science Monitor. He is the President

and "Captain of the Ship" of a management-consulting firm, Chart

Your Course International, located in Atlanta, Georgia. Phone him at 770-860-9464.

Back

to Business Home Page