Should I Hire New IT Staff Or Invest In More Training?
A shortage of talent is a major problem many companies are facing. Finding the right person for the job can be difficult. The longer it takes, the bigger the need seems to be. When looking to fill a position, you may wrestle with whether to hire new staff or invest in a current employee. While there are benefits to both, investing in your current staff is a great option. Here’s why.
Hiring new IT staff is expensive. So if you’re planning on hiring someone for a position, be prepared financially. One report shows that the average cost to hire a replacement employee is about 33% of that employee’s annual salary.
It’s important to note that this cost varies depending on the position. Another study illustrates this as follows:
- 16 percent of annual salary for low-paying jobs (Those who earn under $30,000 annually).
- 20 percent of annual salary for midrange positions (those who earn between $30,000 to $50,000 annually).
- 213 percent of annual salary for highly educated executive positions such as a CEO.
It is far more cost-effective to invest in training staff for upper-level positions and to hire entry-level positions as needed.
Another important factor to consider is time. The average time to hire an IT associate is around 30 days. During this time your HR department is focused on the hiring process rather than other important company needs. This takes both company time and money.
Rather than looking for new employees to fill upper-level positions, you should train those who have already shown dedication and loyalty to the company. Those individuals will also have a clear understanding of company goals and expectations as well as good standing and relationship with those they will be leading.
Another aspect of hiring staff vs training staff to consider is the retention/turnover rate. When you choose to invest in more training, you’re allowing them to grow and move up within the company. This encourages them to stay engaged.
Many employees leave their companies due to feeling undervalued or not believing they have a chance to advance. Giving them something to work towards helps retain current talent and reduces your turnover rate.
How Can Techbridge Help?
At TechBridge, our goal is to bridge the gap between business and employee, matching qualified workers with the companies who need them. If you have any further questions or you’re interested in our staffing and recruiting process, contact us today!