Retaining Key People
There’s lots of research demonstrating the importance of staff development. For example, Capterra has reported that nearly 50% of companies were spending more on upskilling their employees in 2022.
‘nearly 50% of companies were spending more on upskilling their employees in 2022’
Another one from WorkDay suggests that people leave when they don’t see a path for personal development. Its data shows that nine months before somebody quits, they start to show a decline when asked questions related to their ongoing development.
Employees feel that all aspects of their growth are stalled, including feeling that they’re not:
- growing professionally
- on a career path in the organisation
- in a job that allows them to learn and develop new skills
- supported by a manager or mentor who’s encouraging development.
It’s fascinating, that it’s nine months before they quit that the data starts to decline.
There’s another report from Capterra around remote work that looks at how larger businesses are increasing their spending on learning and development, whereas smaller businesses of under 100 employees are keeping their learning and development spending the same. To me, this suggests that if you’re a smaller business, and you’re competing with these larger businesses that are paying higher salaries and increasing the development of their employees, it’s going to be very difficult for you to retain key people when they’re getting calls from recruiters saying, ‘Hey, do you want to come over to this bigger business?’
You may think ‘yes, I agree, but we don’t have the funds’. I will outline how you can do this affordably, but first, let’s also look at the benefits in terms of hiring people.
Hiring Key People
The government recently released the 2022 population statement, and it showed that we have a smaller, older population and a tight labour market. Anyone who has tried to hire recently will know it’s been difficult. There have been very public layoffs from large, international tech companies, but there’s an awful lot of organisations in Australia that aren’t those big tech companies that aren’t doing layoffs, and are still really struggling to hire people.
There’s also a term that’s been reported as ‘quiet hiring’, which is when you actually upskill your employees with new skills and capabilities, so that you don’t need to hire other full-time employees because you’re getting that productivity increase.
Another trend that ‘s being reported this year, is that we need to loosen the formal education and experience requirements in job postings. Gartner has concluded that candidates are looking for nonlinear career paths. If we have skill shortages, and we’re really struggling to hire people, we need to be much more comfortable in assessing candidates on their ability to perform in the role rather than their qualifications and prior experience.
‘We need to be much more comfortable in assessing candidates on their ability to perform in the role rather than their qualifications and prior experience.’