Why a Skills Acquisition Strategy is Critical to Filling Skill Gaps
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1 Why a Skills Acquisition Strategy is Critical to Filling Skill Gaps
2 Tips for the webinar
3 Training Industry
4 Our Speaker Ray Rike President, Simplilearn Americas
5 Agenda The Total Cost of Talent Acquisition How Investing in Training Saves Money How Training Impacts Employee Retention How Training Enhances Employer Brand How Training Boosts Profitability A 6-Step Start to Skills Acquisition How to Minimize Training s Impact Questions & Answers
6 Training is a Strategic Imperative CEOs should think of employee development not as an expense, but as an investment. In today's economy, if your business isn't learning, then you're going to fall behind. Paul Sarvadi, the "Human Resources coach" at Entrepreneur.com
7 Learning is a Strategic Imperative Those employees who don't invest at least five to 10 hours a week learning online, will obsolete themselves with the technology. Randall Stephenson, CEO of AT&T
8 The Global Skills Gap Jobs in 2015 (M) Unfulfilled Positions in 2015 (M) Digital Marketing Total 28M 9M Large, growing demand for technology & Process skills met by limited supply Source: IDC, Microsoft, Evans Data, Avendus estimates, Management estimates
9 The Total Cost of Talent Acquisition Talent Acquisition direct costs to fill a mid level position can cost over 20% of the annual salary Total Costs to replace a senior or a Hard to Fill position can be 1.5x 2x of Annual Salary Average cost to fill a position was over $4,000 in 2015
10 The Total Cost of Talent Acquisition 1. Recruiting components including recruiters, sourcing, advertising, interviewing, background checks, and drug testing 2. Onboarding, including manager productivity lost to training, peer productivity lost to training, HR focus on lower value on-boarding tasks 3. Lost productivity of open positions, ramp time to productivity for new hires 4. Lost engagement resulting in lower productivity by other employees who experience employee attrition; 5. 33% Attrition on new Hires in first six months.
11 Cost to Value Accelerates with Employment Tenure The longer employees are retained, the more efficient and more economically valuable they become over time
12 How Training Investments Save Money As salaries rise, so do talent acquisition costs (averaging 20% of salary below $75K) and up to 213% for executives and highly paid positions with specialized skills. Talent acquisition direct costs to fill a mid level position > 20% of the annual salary Total costs to replace a senior or hard to fill position can be 1.5x 2x of Annual Salary Training costs stay constant and predictable at $100 - $1,200 per employee annually Training costs stay constant and predictable, from $100 to $1200 per student.
13 How Training Impacts Employee Retention Employees value training for career growth Today's workforce is less concerned with perks than they are with their future. Employees are quick to seek other options if they feel their professional situation is stagnant. 40 percent of employees who receive poor training leave their positions within the first year. Employers who actively provide career development and training experience 40-50% less attrition
14 Digital Economy has Changed Job Opportunities "In digital/technology roles, two-thirds of all workers believe they could find a better job in less than 60 days if they only took the time to look." Dice.com Salary Report
15 Millennials Develop, Train, or Re-Hire? "More than two-thirds of Millennials believe it is management s job to provide them with accelerated development opportunities in order for them to stay survey by Deloitte
16 42% of employees rate job training as very important, but only 25% are very satisfied with the amount of training they are receiving SHRM Employee Job Satisfaction and Engagement Report
17 How Training Enhances Employer Brand Corporate sponsored training provides a competitive edge in luring the best talent. Benefits and corporate culture factors that drive high employee engagement such as training are now a CEO-level issue. Only 54 percent of employees recommend their company as a place to work.
18 How Training Impacts Productivity & Profitability Companies who invest an average of $1,575 per employee on learning earned 24% higher profit and 218% higher revenue from each employee. Companies with up-skilled employees stay current and more competitive. Companies with highly committed employees tend to post sharply higher shareholder returns. Companies with Trained and Certified Project Managers experience 84% increase in on-time project delivery.
19 How Training Impacts Productivity & Profitability "Organizations with a strong learning culture are 92% more likely to develop novel products, 52% more productive, 56% more likely to be the first to market, and 17% more profitable than their peers." David Mallon in High-Impact Learning Culture
20 6 Steps to Starting a Skills Acquisition Strategy Evaluate your skills deficit and your current employees skills potential Does the task need a new job role or just a new skill? Could a current employee be trained, and whom? Could several employees learn & share the skills? Up-skill and backfill Enrich & promote the most productive employees Creates a climate of career development, increased employee engagement and retention Replace with new hires to fill lower-risk functions
21 6 Steps to Starting a Skills Acquisition Strategy Assess your goals for the training Skill alignment to strategic business objectives Instilling continuous learning as a benefit Staying relevant on current technology, processes, trends and techniques Acquiring skills and certification in new technology Establishing a common Language or Fluency across all employees Upgrading or standardizing skills company-wide Increasing revenue through new services Meeting mandates from customers or government
22 6 Steps to Starting a Skills Acquisition Strategy Choose the right training partner 1. Is training available in a blended learning model? 2. Is training a structured course or just tips & tricks? 3. Does the training include assessments to verify and reinforce student learning? 4. Can the training be tailored to your needs? 5. Is the material continuously maintained and up-to-date? 6. Does the provider offer a manager s dashboard to track team progress? 7. Does the training prepare for certification?
23 6 Steps to Starting a Skills Acquisition Strategy Provide incentives for training Executive sponsorship and communication Communication strategy for successes and praise Certificates of completion Company specific or Industry Recognized "Rite of passage" badges/mementos Celebrate graduates with an event Corporate branded Train to Win gear Small Rewards or gift cards Align attendance to career path opportunities
24 6 Steps to Starting a Skills Acquisition Strategy Take advantage of corporate incentives from government sources The California Employment Training Program provides reimbursement of qualified expenses for qualified training programs. The Georgia Retraining Tax Credit offers specific dollar amounts per employee for training program per year. The Arizona Jobs Training Grant provides job-specific grants for customized training programs for new or incumbent employees.
25 6 Steps to Starting a Skills Acquisition Strategy Measure training results 1. Learner engagement: Net Promoter Score (NPS) 2. Learning results: How well participants acquired the intended knowledge/skills with assessments, certifications or even peer review 3. Behavioral change: How much the employees applied what they learned to doing their job 4. Increased performance: How much the training improved long-term factors like efficiency and morale
26 6 Steps to Starting a Skills Acquisition Strategy Nurture employees to fill anticipated roles Establish a Continuous Learning Culture Strategically create a pool of most promotable employees. Key Man and Succession Planning Work with hiring managers to anticipate future positions required and associated skills gaps. Hire at entry level, train from within, and promote as necessary. Guide which new skills your workforce should develop.
27 How to Minimize Training s Impact on YOU Training can be developed, delivered, and maintained by an external training provider, with your strategic guidance E-learning and online virtual classrooms can happen right at the employee s computer, so it doesn t take the employee out of the office. Functional training should include applied learning opportunities whenever possible Training can take place at each employee s own pace and best available times.
28 Training is a Strategic Imperative CEOs should think of employee development not as an expense, but as an investment. In today's economy, if your business isn't learning, then you're going to fall behind. Paul Sarvadi, the "Human Resources coach" at Entrepreneur.com
29 Train to Win in the Digital Economy THANK YOU Ray Rike President, Simplilearn Americas linkedin.com/in/rayrike
30 UPCOMING WEBINARS
31 MORE WAYS TO GET INVOLVED
32 THANK YOU! Ray Rike
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