Leadership Development Firm Warns Perth Businesses: Develop Your Employees or Lose Your Best Talent
Announcement posted by Integral Development 15 Mar 2013
Integral Development reveals why failure to develop leadership from within costs Perth businesses thousands of dollars every year.
In a recent blog post on their website, Integral Development, a leadership development firm from Perth, explained how many companies are losing their most talented employees because they fail to provide opportunities for management and leadership courses for their employees.
The post cited a consensus of industry studies on the cost of replacing employees, and a study that was published in the Harvard Business Journal about “young high achievers” feeling that they have to perpetually change jobs to find more opportunity. While Integral Development conducts their leadership courses in Perth, the studies are of a global nature, because there are no studies specific to Perth or Australia as of now.
The post explains why it is more cost-effective to develop leaders from within than to hire from outside. International studies have been conducted in varying workplaces with varying results, but there is a commonly-accepted norm regarding the cost of hiring and training new employees.
For a menial employee, the common estimate is that it costs 16% of their average yearly salary to train them. When a worker has more skill, the number jumps to 20% of a salary that is higher. When the person being hired and trained is management, though, the number rises sharply. According to industry estimates, it costs between 150-213% of a manager’s salary to hire and train them.
The information from the Harvard Business Review study demonstrates that young high achievers not only have no reservations about leaving their jobs if they feel they aren’t being developed properly, but that they are on what is called a “perpetual job hunt.”
According to an international poll of 1,200 people who had high grade-point averages, got degrees from elite universities, and served international internships while in college, 98% were looking for another job at least once during their first year of employment in their chosen field.
In addition, 75% of those in the poll interviewed for jobs, contacted search firms, or sent resumés to prospective employers during their first year of employment. The average stay at the first job was 28 months. While this kind of behaviour was formerly known as “job-hopping,” and those who did it usually suffered career setbacks, this group reported that every time they changed jobs, they received more money, a promotion, or both.
According to Dr Ron Cacioppe, Managing Director of Integral Development, the studies point to a growing dilemma for businesses: “The current economy and employment statistics have put a lot of businesses in a quandary. They don’t want to provide training in fear that employees will leave before they see a return on their investment, but employees don’t want to stay if they don’t feel they are being prepared for upward mobility. Consequently, businesses are losing a lot of talented employees, especially the younger ones.”
Cacioppe continued, “Meanwhile, it costs a lot of money to replace and train any employee, from menial to skilled to management. That is why we recommend and provide executive coaching and leadership development training to all of our Perth clients.”
Cacioppe concluded, “Leadership comes from the top, and a well-developed executive and management team can contribute to a culture of employee development and promotion from within. This helps them keep their best employees and makes the whole team stronger and more efficient.”
Integral Development conducts management and leadership development courses in Perth. For more information, please call (08) 9242 8122 or visit their website: http://www.integral.org.au/.
The post cited a consensus of industry studies on the cost of replacing employees, and a study that was published in the Harvard Business Journal about “young high achievers” feeling that they have to perpetually change jobs to find more opportunity. While Integral Development conducts their leadership courses in Perth, the studies are of a global nature, because there are no studies specific to Perth or Australia as of now.
The post explains why it is more cost-effective to develop leaders from within than to hire from outside. International studies have been conducted in varying workplaces with varying results, but there is a commonly-accepted norm regarding the cost of hiring and training new employees.
For a menial employee, the common estimate is that it costs 16% of their average yearly salary to train them. When a worker has more skill, the number jumps to 20% of a salary that is higher. When the person being hired and trained is management, though, the number rises sharply. According to industry estimates, it costs between 150-213% of a manager’s salary to hire and train them.
The information from the Harvard Business Review study demonstrates that young high achievers not only have no reservations about leaving their jobs if they feel they aren’t being developed properly, but that they are on what is called a “perpetual job hunt.”
According to an international poll of 1,200 people who had high grade-point averages, got degrees from elite universities, and served international internships while in college, 98% were looking for another job at least once during their first year of employment in their chosen field.
In addition, 75% of those in the poll interviewed for jobs, contacted search firms, or sent resumés to prospective employers during their first year of employment. The average stay at the first job was 28 months. While this kind of behaviour was formerly known as “job-hopping,” and those who did it usually suffered career setbacks, this group reported that every time they changed jobs, they received more money, a promotion, or both.
According to Dr Ron Cacioppe, Managing Director of Integral Development, the studies point to a growing dilemma for businesses: “The current economy and employment statistics have put a lot of businesses in a quandary. They don’t want to provide training in fear that employees will leave before they see a return on their investment, but employees don’t want to stay if they don’t feel they are being prepared for upward mobility. Consequently, businesses are losing a lot of talented employees, especially the younger ones.”
Cacioppe continued, “Meanwhile, it costs a lot of money to replace and train any employee, from menial to skilled to management. That is why we recommend and provide executive coaching and leadership development training to all of our Perth clients.”
Cacioppe concluded, “Leadership comes from the top, and a well-developed executive and management team can contribute to a culture of employee development and promotion from within. This helps them keep their best employees and makes the whole team stronger and more efficient.”
Integral Development conducts management and leadership development courses in Perth. For more information, please call (08) 9242 8122 or visit their website: http://www.integral.org.au/.