Getting down to business: How internal employee training stacks up against external recruitment to meet talent needs
The Global perspectives for private companies survey highlighted changing talent strategies for private companies. The survey showed many respondents are focusing on a workforce strategy that includes talent investment: balancing hiring new people with educating and training the staff they already have.
David Campbell, a Deloitte senior consultant based in Auckland, talks to us about employee training. He believes it is a brilliant idea.
What is your view on companies training their existing staff over hiring new staff?
It’s a brilliant idea! It's something we encourage - there's a simple reason to focus on developing people internally, companies that do have 18% higher revenue and 30% greater profitability.
This was the evidence that Bersin by Deloitte found in recent study. They’ve labelled the companies that develop people internally well as having high maturity talent acquisition.
The study details the correlation between high-impact talent acquisition strategies and critical HR-related outcomes in the areas of retention and internal career progression.
So given the cost and time spent finding, recruiting, and developing good people, activities that can increase retention are encouraged.
Why do you think employee training is a top choice for employers? What are the benefits?
Well, we know it’s really important because the very nature of careers are changing. People are working longer and retiring later in life, staying in jobs for just over four years, while at the same time the nature of work is changing and people need to change their learning mindset to keep up.
Using the Bersin study as an example, we see that organisations using high-impact talent acquisition strategies are likely to keep people longer, will have a ready pool of internal candidates to step up and take on new challenges, and, by committing to developing their people, are likely to boost the employer brand, which is a bonus for when they need to attract high quality external people.
So companies that commit to developing and mobilising their workforce will have a crucial supply of skilled and engaged people and that’s vital to keeping their businesses thriving.
Does Deloitte Private balance new hires with cultivating the talent we already have in-house?
We're really lucky to receive a huge number of applications for roles here every year. We hire people to join our teams based, in part, on their potential. Then we develop and grow our people to become the future leaders of the business. As we grow, we will need to bring in new talent to our business and our hiring policy remains the same, hire people for their potential and then grow and develop people to have fulfilling careers at Deloitte.
06 March, 2018 by Kate Butler,
Kate Butler works in the Deloitte marketing team and closely with Deloitte Private. She loves learning from individuals and businesses who are really making an impact in New Zealand's SME space and enjoys sharing these insights with emerging businesses in the market.