Since the world economy is rapidly changing, the job market has become increasingly volatile, and the requirements for existing job positions are increasing. While the pandemic and the digitalization of many processes caused several job opportunities to shut down, new professions are emerging in lieu of that change, with new demands and the need for qualified candidates.
In such times, it is crucial to upskill your employees by encouraging them to pursue higher education. However, some companies consider upskilling a waste of resources and believe that upskilling employees by providing certifications and courses will only benefit the worker and not the company.
But the truth is that upskilling your employees can be a great investment for your company. It can help the company perform better and maintain its position in the market in front of competitors. For this reason, let us discuss some benefits of furthering employee education for businesses.
1. Performance improvement
Any employee wanting to pursue higher education in the hopes of career growth can be a valuable resource for the company. The reason is that the technological landscape is ever evolving, and as a result, the business industry has to keep up with the change. With a new set of strategies, techniques, and technological tools at the company’s disposal, someone mustlearn the ropes to manage them.
For this reason, along with recruiting new employees, establish a strategy to upskill your employees and urge them to further their education. For example, if you already have employees working with a master’s in business administration, encourage them to enroll in an online doctor of business administration program.
Higher education, in combination with years of experience with your company, will benefit you more than hiring a new employee who has to learn the ropes of your business from scratch. For this reason, many startups partner with universities and enroll their employees in courses or allow them an easier higher education.
2. Improves employee retention
A common misconception that prevents companies from setting up training programs for their employees is the belief that the employee will only take the training and knowledge to some other company. While the fear of losing your employees to competitors is rational, the reality is somewhat different.
Providing access to higher education, courses, certification, or training programs to your employees shows them they are valuable assets to the company. It fuels their desire to learn and grow, making them want to perform better for your business. In return, it encourages a sense of loyalty among workers and drastically improves employee retention rates.
3. Creates the right culture
Any company where employees feel their growth is becomingstagnant will have low employee retention rates. The reason is that people want to work where they have room to learn and grow instead of working with the same skills and in the same position forever.
For this reason, managers must develop a company culture by putting great value into development and training. However, there is a careful balance between urging them to upskill as opposed to forcing it upon them. If your employees feel forced, it can have an undesired effect on them.
Therefore, create a culture of learning where everyone’s professional growth becomes a priority, and their skills, ideas, and opinions are appreciated.
4. Fills the skill gap in the company
Teaching new skills to your employees will not only help them excel at their current job but also help in filling any skill gaps within the company. The reason is that some soft skills that are most lacking in organizations include leadership, critical thinking, problem-solving, teamwork, etc. On the other hand, some hard skill gaps that companies often face include research skills and data analysis.
With employees furthering their education and learning new things, there is a chance to fill the skill gap in the company without hiring new individuals for the job. Keep in mind that replacing people comes with a high cost, which is why the most efficient course of action is to further your current workforce’s education.
5. Saves money
While recruiting can help bring fresh employees with fresh minds, new skill sets, and unique ideas into your company, the whole process can also be expensive. You will have to spend your resources during the recruitment process, which includesadvertisement, negotiating benefits and salary, training the new employees, and integrating the workplace, among other expenses.
Apart from that, it can take a company up to six months or even more to break even with their investment in the new recruitment. This only suggests that replacing an employee can cost you almost twice the annual salary of your current employee, and that is putting it lightly.
When you look into it, many workers will say that their company could have taken several steps to retain them. But instead, choosing to hire someone new instead of upskilling and furthering your current employee’s education can cost you greatly, especially when you are replacing a highly competitive individual.
On the other hand, investing in your current employees and upskilling them can provide more fruitful results.
6. Better preparation for contingencies
While not everyone may leave your organization because of a lack of career progress and growth opportunities, many would. But the issue arises when key employees resign unexpectedly and you don’t have enough resources or anyone on standby to fill in their shoes.
This position gap can very well jeopardize your operation significantly. Keep in mind that it can take up to months to find a worthy predecessor to them, and it can have disastrous consequences.
You can prevent that by taking the necessary steps to further your employee’s education, which will help improve employee retention. Moreover, their experience, education, and training will help them prepare for a leadership role, which will help reduce skill gaps within the company.
Taking the initiative to further employee education is an investment worth making. Training your employees and upskilling them to stay in line with the current technological evolutions and other business trends will help you maintain a competitive edge in the market.
Otherwise, soon enough, the skill gap within your company will sweep over the whole operation, rendering every strategy you employ useless. For this reason, we suggest you find ways to further your employees’ education by partnering with training agencies and educational institutes. It will be a win-win situation for everyone involved.
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