Many businesses are now in a position where they’re worrying less about economic woes and more about how to expand their current portfolios, but to do that, a lot of them are turning to outside hiring practices to try and get fresh perspectives. The problem here is that many of the most talented employees have already been scooped up by other companies – with the unemployment rate dropping and many businesses sharing this expansionary mindset, plenty of employers have already scoured the system.
As one of the leading concerns expressed regarding IT and HR personnel, as well as a myriad of other departments, some businesses have moved away from hiring what they consider the most experienced candidates. Instead, they’re focusing on investments in workforce, creating better employees out of the personnel they already have.
The Power of People
Currently, a number of companies already have a large numbers of people ready to participate in training and other refinement practices geared toward improving productivity and overall performance. The idea here is that, instead of going out and recruiting a new set of workers, these companies are better off improving the quality of the resources they already have, since these individuals know all about the corporate culture, systems and personnel interactions. Rather than wasting time and money on bringing a new recruit up to speed on the very basics before even launching into specialized topics, HR personnel stand a better chance of seeing a return on employee investment (ROEI) versus a new job offer with internal candidates and increased training.
Focusing on ROEI can highlight a myriad of savings for corporations, making a compelling case against new hires, especially in a dried-up talent pool. The direct and indirect expenses turn in the business’ favor when balanced out, reducing turnover and boosting employee engagement. By adding to the value of existing personnel, corporations will see improvements in the overall quality of output from people who have been with the company for some time, but what’s changed is that they feel more like their bosses care, and therefore are compelled to do a better job.
Learning to Invest
Companies of all kinds can partake in these strategies. Whether it’s IT departments, financial institutions or retail stores, the ability to improve productivity and quality of work of employees can be as simple as showing an interest in those employees’ continued growth. By adding to the abilities of existing personnel, ROEI for employee training can outweigh hiring initiatives easily.
In light of this, technology retailer Best Buy recently decided to improve its existing workforce by showing more than 50,000 of its current employees more about Windows 8. As Microsoft’s newest line of software, the operating system builds on older deployments and makes these previous models obsolete, yet the programs are written for mobile devices mostly, meaning not all consumers will understand why they’re useful. There was no way Best Buy could go out and hire people with this knowledge – as a newly released item, the talent pool was barren in terms of candidates with in-depth experience of handling Microsoft Surfaces or Windows 8. Instead, the organization chose to train all its applicable workers at every location in the country. While the business could have hired fresh candidates and taught them the same information, it made more sense to boost employee engagement by adding investment strategies to current HR programs.