February 2015
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Spending to Train New Hires May Not Be Necessary

Wednesday, January 21, 2015

In the constant battle to retain top talent, employers are spending more on training new hires—and for good reason. Each month, about 2.7 million people leave their jobs. Learning and development budgets increased last year, with the largest growth rate in almost a decade, according to a Bersin by Deloitte study. But is blanket spending the right way to approach the problem? Some experts say no. When an organization has an issue with its culture—and experiences high rates of turnover—the first solution is often to “throw money at the problem,” which can translate into higher spending on training programs that may or may not address the problem. These programs may not be as effective as employers hope, and may not do anything to address the root causes of a problem. Before money is spent on new training programs, companies should look at the resources they already have. Some employees may already be experts in certain areas, and can impart specialized skills to new hires. Some new hires may already be competent, and may only need the freedom to be self-sufficient. Some employees may only need to feel more valued for their work, and be given the opportunity to help others. By looking at the hidden assets within a workforce, a company can lay out better plans for training, providing it where it is most needed.

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