With today’s high demand for STEM talent, a large number of STEM positions go unfilled each year. It is important to understand that this problem is not only attributed to a shortage in labor, but also a shortage in skills. Some companies do not invest in on-the-job training for entry-level STEM employees, yet this investment is necessary in today’s increasingly competitive talent market. Here are some other ways companies can benefit from investing in on-the-job training:
Training reduces turnover.
As the demand for STEM talent largely outweighs the supply, STEM candidates have an abundance of opportunity, which can lead to high rates of employee turnover. According to Go2HR, 40% of employees who receive poor or little training leave their positions within the first year. With that being said, employees are willing to invest in jobs that are equally willing to invest in them. Investing in on-the-job training demonstrates to employees that they are valued by the company and will be provided with opportunities for growth and development. This then increases employee retention.
Create company-specific training.
An investment in training is an investment in potential that can be molded. By having the opportunity to specialize training, companies are able to instill the specific skills they want and need in their employees. This allows for companies to create their own “ideal” workforce as they tailor training programs to align with company-specific goals. These training programs are also a chance for companies to enhance the value of their employees by “multi-skilling” both their incoming and existing workforce. Using training to increase skill-based versatility allows employees to perform a larger variety of tasks in overall benefit to the company.
Increase company productivity.
On-the-job training promotes greater employee engagement by providing opportunities for growth and development. This investment has shown to increase overall company productivity. A Dale Carnegie survey recently revealed that companies with engaged employees are 202% more productive than those without. In addition to employee engagement, on-the-job training increases productivity by allowing companies the opportunity to universally communicate the goals, expectations, and responsibilities of a position. This works to streamline processes, promote employee consistency, and give employees a clear understanding of what is expected of them and how they can fulfill those expectations.