If you’re looking for the most cost-effective investments to boost productivity at your business, what is it? According to respondents of this new 2024 Deloitte survey (PDF) the answer is: talent!
Deloitte surveyed 100 private business-owners and other company leaders about their productivity investments, and by far the most common answer was talent. This was even true across operations of all sizes. The only difference is that larger businesses were hiring new talent, while smaller operations were focused on training and upskilling their existing workforce.
Our years of experience providing superior outsourced HR services to growing businesses provide us with some insight to the reasons it is important to invest in your staff.
High Turnover Rates Harm Productivity
Workers in the United States have become increasingly accustomed to job-hopping, moving to different companies for career advancement rather than waiting for promotions. According to the US Bureau of Labor Statistics in 2022, 70% of employee turnover (PDF) is due to voluntary quitting. Every time an employee sees greener fields at another company, their previous employer loses a valuable human investment.
This leads to obvious productivity loses as the position goes unfilled, and teams are forced to make due with fewer experienced workers.
Rehiring Is Expensive; Retraining Is Affordable
The costs associated with finding, screening, hiring, and onboarding a replacement employee almost always run into the thousands of dollars, at least. Nor is that expense in a vacuum. When the new hire is replacing a veteran who left the company, it could be months or years before they’re capable of achieving the same level of productivity. This creates a huge opportunity cost which only adds to the overall costs.
Meanwhile, retraining and upskilling existing employees is more affordable, and far less disruptive to operations. In addition, workers who see genuine opportunities for promotion and advancement at their current company will be less likely to leave in the first place.
A Focus On Talent Boosts Any Business
It’s not hard to see why smart businesses are focusing on cultivating talent within their operation. Retaining experienced workers and adding to their skillset, while hiring additional workers as needed, creates a culture of excellence which boosts productivity across the operation.
GO Admin Solutions can help make that happen! Our expert HR services can assist with improving your internal policies to reduce turnover rates.
Please contact us to learn more about our services.
