Fact No. 1: 19 million American workers expect to change jobs in the next year. That’s 13.3 percent of the country’s workforce.
Fact No. 2: The average wage of U.S. workers was $42,979 per year, according to the Social Security Administration.
Fact No. 3: Businesses report they spend 2.5 times a worker’s salary to train them, or $107,449 based on the government’s estimate of the average salary.
Quick conclusion: It is going to cost businesses an estimated $2 trillion over the next year to train new workers.
The short analysis of this is that too many people are unhappy in their jobs, and it is costing a ridiculous amount of money to train new workers when unhappy workers quit.
The solution to this might be shown in the survey results of Cornerstone OnDemand’s 2013 Employee Report. The Santa Monica-based talent management and productivity assessor reports that companies aren’t paying attention to the needs of their employees and in the process are sewing the seeds of job discontent.
Cornerstone OnDemand’s survey of 494 workers across the country found that there is an increasing absence of ongoing training and development. In the past six months, it says only 32 percent of workers had received training to better perform their jobs.
It also found that goals and expectations between managers and employees are misaligned. Only one in four survey participants has established career goals with their manager/employer.
In addition, there was a decided lack of individual recognition or performance feedback. Two thirds of the workers said they haven’t received useful feedback from their managers.
Inattention to these workers’ needs and wants is driving workers to seek other jobs and a short-term, cost savings for companies that is bound to backfire.
“The worldwide skills shortage is quickly becoming a crisis across companies of all sizes and industries,” says Cornerstone OnDemand’s vice president Jason Corsello. “Unfortunately, there is no silver bullet to address the global skills shortage, but companies can take action to build programs today and invest more in ongoing trading and continuous feedback for their employees.”
The survey results suggest that improving the skills of existing workers is not only a cost-saving expense, but one that helps to motivate its existing staff by the company displaying the confidence to invest in them. These workers will relish the opportunity to learn new skills that will lead the company into new business opportunities
It also believes that a large number of companies need to redirect their management style into coaching roles. Rather than depending on formal reviews, managers need to adopt continuous, meaningful dialogue with their workers. They need to give on-the-spot coaching and feedback. And, employee goals should be more in sync with business objectives, as well as their own career aspirations.
Companies shouldn’t overlook the value of making performance feedback and recognition known in wider circles. Publicizing achievements within a company rather than within a small work group can help build worker morale while at the same time provide other managers with better insight into how employees are succeeding and how those successes can translate to their own units.