Investing in Employees Actually Makes You More Money
How skill-based flexibility and government grants can empower your people.
Silicon Valley is a ruthless playground for talent poaching, with many companies investing considerable amounts of time and money into stealing highly-skilled employees from competitors. Though Silicon Valley may have it the worst, every major business hub is exposed to these hiring tactics.
As a reactive measure, companies have started to look internally for their new hires, and to great avail. Instead of joining the hunt, organizations like Amazon and Seattle Genetics are investing in training their employees to fit changing needs.
Arcane offers training programs that can be subsidized by the government. In today’s competitive markets, training is one of the ways you can protect and optimize your human capital, but this process starts with hiring the right people.
Who to Hire
The introduction of this training-over-hiring strategy reinforces the need for employees with intangible positive qualities. The hiring process should focus on characteristics like a desire to learn and mental flexibility, instead of concrete skills like coding. This allows the human capital of one’s business to remain flexible, especially in rapidly changing industries, like tech or marketing.
Saving Money is the Same as Making Money
Hiring is extremely expensive. According to the Society for Human Resource Management, replacing an employee can cost an organization somewhere between 90% – 200% of their annual salary, but it’s more expensive than that.
A manager who earns $50,000/year can cost between $45,000 – $100,000 to replace.
The cost of turnover goes beyond just monetary value. A change in human capital causes a change in organizational morale, a loss of knowledge retention or company understanding, and requires training for new employees. This takes time and energy, and can be very taxing to a company.
Training Instead
Investing in your existing employees has other added benefits. Businesses can be more flexible through internal training, as they can encourage employees to prepare for multiple roles in case of a high-priority project or absent employees.
Training internally also develops manager-level employees. These managerial prospects have already acclimatized to the company culture and understand how to effectively work with their team. As managers, these employees also have the capability to later train others.
What You Can Do Right Now
The Canadian government offers assistance through their Canada-Ontario Job Grant. This helps Canadian companies offset training costs by covering a portion of the payments. Businesses can get between 66% – 83% of costs covered depending on the number of staff they have employed.
Arcane offers digital marketing training programs in areas such as paid search, display advertising, and social media, and we encourage businesses to take advantage of the grant. The approval process can take up to 20 business days and you can only start training after the grant has been approved, so it’s important to get started now.
Interested?
Contact tony@arcane.ws today to learn more about how you can take your training to the next level and keep your employees nimble in the competitive business market!