Have you ever heard the saying “it’s cheaper to retain a customer than to acquire a new one”? Well, the same principle applies to employees.
A recent study has shown that it’s actually less expensive to reskill and upskill existing employees, rather than hiring new ones. Surprised? Let me break it down for you.
For starters, the cost of recruiting and onboarding a new employee can be substantial. There’s advertising, interviewing, background checks, and training, to name a few. According to the Society for Human Resource Management, the average cost-per-hire is around $4,000.
Now, let’s compare that to the cost of reskilling an existing employee. It’s true that there is still a cost involved, but it’s often significantly lower. For example, offering online courses or in-house training can cost a fraction of what it takes to bring on a new hire. Plus, you already have an established relationship with the employee and know their skills, strengths, and weaknesses.
But that’s not all. Investing in your existing employees has other benefits too. For one, it shows them that you value their contribution to the company and are willing to invest in their future. This can lead to increased job satisfaction, motivation, and ultimately, better performance.
Plus, reskilling employees can lead to increased innovation and competitiveness within your organization. By giving employees new skills, they are able to bring fresh perspectives and ideas to the table, which can drive growth and success.
So, what’s the bottom line? The data is clear: reskilling employees is a smart investment. Not only is it cost-effective, but it can also lead to improved employee satisfaction, performance, and overall success for the organization.
So, the next time you’re thinking about hiring a new employee, consider reskilling someone on your team instead. Your wallet (and your employees) will thank you.
What do you think about this topic? Have you invested in reskilling your employees? Let me know in the comments!