If you classify as a Small to Medium-sized Enterprise (SME), you may not have heard about what’s the new rave in the business world: Learning and Development. Gone are the days when employees are left to fend for themselves after a one-day training course. Now, we are in the age of guidance. With 40 per cent of millenials leaving their employers within the first year, businesses are beginning to realize that the cost of a new recruit isn’t just in the hiring a recruitment agency, it’s much bigger than that. Some of these extra costs include:
- The loss of productivity in the other employees who have to pick up the slack left by the outgoing employee:
When someone walks out, there’s usually a vacuum big or small, that sucks in the productivity from the employees around it. They have to work more to fill up that hole and this usually results in lower morale. As a “plus” you get the dollar cost of paying said employees for possible overtime.
- The time costs for internal recruiters:
Should a company decide to hire in-house recruiters, there is the time taken for recruiters to find these candidates, as well as the time taken for a key employee to interview said candidates. Sometimes, in-House recruiters still need to outsource the recruitment process.
- The time costs for managers who have to dedicate time to training the new employees:
Pretty self-explanatory. Someone is going to take the time out of his day(s) to get the new hire up to speed on how things work around the office. Usually someone fairly important to the system.
- The loss of years of valuable knowledge and experience:
Remember that vacuum I talked about earlier? This is part of that vacuum. After months or years of working at a company, there are things which the company has imparted that the leaving employee takes with him and this leads to the next cost.
- Time taken for the new employee to begin to work at their maximum productivity levels:
According to a survey of 610 CEOs by Harvard Business School, it can take up to 6.2 months for a business to see an ROI on the typical mid-level manager.
This isn’t an insignificant list of costs that businesses run into when trying to replace an employee.
Enter L&D. It’s all part of this bigger puzzle called Employee Engagement. Most of us already know about Employee Satisfaction but the two are not to be confused. Where Satisfaction is all about employees being happy as clams, Engagement is about their level of motivation, their productivity and involvement in the company’s growth. I’m sure we can agree on some things:
- We don’t want clams content with the status quo and taking a paycheck after bare minimum effort.
- We want clams that are striving to be better and striving to make the company better. Clams that are passionate about the company’s ideals.
But there’s another problem. While L&D is relatively less expensive and more beneficial in the long-run than replacement, it still costs a pretty penny. SMEs are painfully aware of this and often stick to the old way of doing things – but it doesn’t have to be that way. There’s a solution. There’s Cudoo Enterprise LMS. Cudoo has taken the time to develop courses and packages designed to give smaller businesses a chance not just to survive but to challenge in their industry. Some of the courses developed include: Language courses in Italian, Spanish, French, Arabic, Mandarin, Portuguese and Russian – all mapped to CEFR levels; soft skill courses in anger management, conflict resolution, and talent management amongst many others. The great thing about Cudoo’s courses is that they’ve been created to be taken in short and easily digestible portions. But that’s not all.
- They’re web and mobile-friendly – giving staff the ability to stay engage on the go
- They award points to incentivize learners and personalized certificates upon completion
- Managers are given the ability to track and manage user engagement, access and completion in real-time.
By providing unlimited access to these features, Cudoo offers SMEs opportunities for productivity and value growth that they have otherwise been restricted from and all of this at highly competitive prices. Request a free demo of Cudoo for your company today.