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The Three R's: Retain, Retrain, Recruit (Plus the Secret to Do All 3 at Once)
May 13, 2021
Companies are transforming – adopting aggressive approaches to digitalization to stay competitive. As companies opt to invest in an advanced technological infrastructure that supports the industry 4.0 business model, effectively creating smart factories and businesses, a dramatic shift of skills is required in the workforce. This shift in required skills is paired with a thinning workforce as experienced employees retire at an unprecedented rate. AARP reports everyday 10,000 baby boomers reach retirement age [1]. This loss is compounded by the fact that young STEM-trained workers are in high demand, and these vacancies are being left unfilled. Companies are worried about the skilled labor shortage and how it will affect growth and transformation plans.
These concerns are valid and being reported across industries. 83% of HR professionals have difficulties recruiting suitable candidates for jobs [2]. And studies show that skilled labor demands are rising fast and require more people with STEM (science, technology, engineering, and mathematics) educational backgrounds than are currently being taught [3]. Companies need a solution to their skilled labor shortage problem. An approach to solve this issue is called the Three R's: Retain, Retrain and Recruit.
As automation takes over traditional low-skill roles in the workplace, these positions shift to highly skilled roles that enhance and maintain these machines and processes. To support the company's needs, retaining, retraining, and recruiting will all be necessary steps.
The first prong in this approach is retaining workers. Turnover and layoffs are costly and are in opposition to the company's best interest. Entry-level position turnover costs 50% of the salary, mid-level turnover costs 125%, and senior executive turnover can cost over 200% [4]. Retaining new hires as well as experienced workers is so important. Experienced employees have a working knowledge of the company and culture and are an incredible asset. And once employees leave a position, filling it can be difficult. This can contribute to a slowdown in transformation plans and a loss in potential revenue. Retaining workers is also tied to prong two of the Three R's. An easy way to retain workers is to invest in their careers by offering educational opportunities. Providing an upskilling course is a powerful retention tool. An IBM study reports that employees who feel they do not have opportunities to develop at a company or fulfill their career goals are 12 times more likely to quit [5]. Also, 94% of employees report that they would stay longer at a company that invested in their career through educational opportunities [6]. This approach can help retain new hires as well. A strong onboarding process structured with upskilling opportunities results in an 82% increase in new hire retention [7].
Retraining is more than just a retention tactic. It is an excellent strategy to level up your workforce and is necessary to enable transformation. Hiring an entirely new workforce that has the skills to support the digital transformation of the business is unrealistic, especially in this job market and with the current state of the skills gap. Providing your workforce with an upskilling program can provide them with the skills needed to move the companies goals forward. Enterprises that upskill & reskill their workforce see a 300% increase in digital transformation acceleration [8]. Upskilling also has a proven ROI of 100% [9], making it a worthwhile investment. Other benefits of upskilling include increases in employee loyalty, productivity, and performance revenue for the company.
The third prong of the Three R's is recruiting. Due to the nature of advancing technology employing highly skilled labor and talent with unique qualifications is, at times, unavoidable. Growth accompanies businesses that embrace industry 4.0 business models, and thousands of baby boomers are leaving the workforce every day. This makes recruiting a necessity. The ASQ 2018 Manufacturing Outlook Survey reports that 39% of companies have hired an agency to recruit candidates to fill open positions [10]. Making your employment offer attractive can be difficult in such a competitive job market. The supply of workers with qualified skills is much lower than the demand, and often, attracting top candidates is done by providing company benefits. A benefit that your company can offer to attract top talent is providing educational opportunities with a robust upskilling program. Millennials are the largest demographic entering the workforce. This is good news for companies who want to attract these skilled workers because upskilling and on-the-job training is a top benefit to this demographic. They rank educational opportunities above salary, workplace flexibility, company culture, and organizational perks. The option to upskill is the main decisive factor for Millennials in accepting a position [11]. Upskilling is such a powerful recruiting skill that 45% of millennials report they would change their current jobs for ones that offer attractive education benefits [12].
The Three R's: Retention, Retraining, and Recruiting can all be accomplished by establishing an upskilling program for your employees. This is a simple and cost-effective way to advance your company's transformation initiatives.
How Can Your Business Launch an Online Learning Program Easily to Retain, Retrain, and Recruit Employees?
Retaining, retraining, and recruiting are three necessary steps to prepare for the future of work. Your company's workforce must level up and prepare for the changes that industry 4.0 initiatives cause. To position your company for success, launching an upskilling program is a necessity. Doing this is simple – just partner with an online platform provider who also creates course content. If you choose a smart partner, your company can start to upskill in just 30 days!
Here are key elements that online learning platforms need to provide value to your company and employees:
Custom branded platform and courses that are uniquely relevant to your workforce
Engaging delivery methods that keep employees actively learning
AI and advanced data capabilities for better learning outcomes and insights
Positive user experience and high retention rates
Turn-key systems capable of immediate implementation with no learning curve
Choosing the right partner is crucial to ensure the highest ROI and success of the upskilling program. Start your retaining, retraining, and recruiting journey today and stay competitive.
Amesite Offers a Single, Easy to Use, Scalable Solution
Launch an online learning program that upskills employees, increases employee retention, and attracts top talent.
Amesite is the premier online learning ecosystem provider on the market today. We are well-positioned to provide your business with a world-class upskilling program to prepare your workforce for the future.
Amesite's platform is high-tech and AI-powered. It is the key to upskilling your workforce. Amesite's high-tech AI-powered online learning environment is scalable, custom-branded, and curated to each company to meet its unique needs. We have subject matter experts who design innovative and custom content for courses that provide excellent value to your employees. A host of self-paced, highly engaging, and intuitive courses can be ready for your company in as little as 30 days.
Amesite creates outstanding learning experiences delivered on its advanced platform, providing a positive impact for employees. Using AI and advanced analytics to provide fresh content creates an essential context for learning. Coupled with outstanding services, these experiences deepen professionals' interest in subjects important to the company's goals. Amesite's unparalleled retention rate in the enterprise sector is 100%.
Let Amesite help your company retain, retrain, and recruit today. Request a Demo!
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