The global survey of 1,555 employees found that millennials cared the most about L&D, saying they would be more likely to choose an employer that prioritised continuous learning and development opportunities. Over three quarters of Gen Z, colloquially known as ‘zoomers’, would have done the same.
Data from the survey also revealed that a good L&D programme was crucial for retention strategies, as the vast majority said they would consider quitting their job within 12 months if L&D to help with career development was cut.
Josh Bersin, an HR analyst, writes: “For years leaders have grown their companies by issuing the demand ‘go out and hire someone who knows how to do this!’ This approach leads HR departments and hiring managers to retain expensive recruiting firms, spend millions of dollars on recruitment advertising, and often hire expensive agencies to try to ‘steal’ great talent from competitors.”
He continues: “It’s far more cost-efficient and far more effective to build critical skills from within. And there are many cultural benefits as well. Here are the economics: The cost of recruiting a midcareer software engineer (who earns $150,000- 200,000 per year) can be $30,000 or more including recruitment fees, advertising, and recruiting technology. This new hire also requires onboarding and has a potential turnover of two to three times higher than an internal recruit. By contrast, the cost to train and reskill an internal employee may be $20,000 or less, saving as much as $116,000 per person over three years.”
With record resignations and job openings in the US and UK, the Great Resignation shows no signs of slowing down.
According Josh Bersin, companies face a “recruiting and retention crisis” that threatens economies. But if you look at the reasons employees are giving for quitting, from front-line workers to mid-career managers, the data points to a crisis of a different nature. Employees have told employers why they are leaving. The message is loud and clear. More than money or perks, employees want training and development.
A 2021 Gallup poll found that:
• 57% of employees want to upgrade their skills
• 50% are willing to change jobs to do it
• 71% said learning new skills increases their job satisfaction
• 61% said they will stay at companies that invest in their training and development.
Becky Schnauffer, Senior Director at Linkedln Talent Solutions, concludes: “By providing employees with opportunities to develop their skills and progress their careers, not only will companies strengthen their talent retention and recruitment efforts in a tough jobs market, they will also boost the engagement of existing employees.”
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