Why businesses train and develop employees - motivation and retention
Businesses train and develop their employees for a number of reasons, but the two of the most important are motivationThe reasons an employee has for working - how driven and happy they are in their role. and retentionRetention refers to the amount of employees the employer is able to keep in the business..
Motivation
Motivation refers to how driven and happy an employee is in their role. If an employee is motivated, they are more likely to do a good job and work hard.
Most businesses view training and developmentProcesses in which employees are provided with additional skills, knowledge and qualifications. as important ways to motivate their employees. If an employee is receiving training and development from their employer, they are likely to feel valued and feel like the business is interested in their progress. They may also feel like the business wants them to reach their full potential. As a result, employees will be motivated to work harder.
Retention
Retention refers to keeping employees working for a business. Retention is extremely important for a business. Keeping employees means keeping their skills and experience rather than losing them to other businesses, and it also means that time and money are not wasted hiring new employees. Employees are likely to feel valued by a business that invests in their training and development, meaning that they are more likely to stay working for that business.
Retention is usually represented as a percentage of employees. For example, a 95 per cent retention rate would mean a business had managed to keep 95 per cent of its employees working for it over a certain time period. A retention rate of 90 per cent or higher is considered to be very good.
Different industries tend to have different staff retention rates. For example, a call centre might have a low retention rate due to the relatively low skill level required to do the work and the fact that it is relatively easy for employees to find alternative employment, either at another call centre or in another low-skill position. In contrast, a school might have a high retention rate due to the training commitment involved in becoming a teacher and the difficulty of interviewing for roles at other schools while fulfilling teaching duties.
