By Kelly Hurley
With the unemployment rate so low (currently at 4 percent), it’s up to MSPs to figure out the best ways to attract top talent to the industry. Of course, compensation is no longer enough, neither are health benefits and retirement plans. While companies in other industries are offering flexible work environments to their employees, this arrangement isn’t possible in MSP environments; however, what owners can do — at the very least — is invest in employees by providing growth opportunities.
Investing in your employees reduces employee turnover
Want to know how to keep your turnover rate low? Simply, invest in your employees to show them you care. They’re more likely to stick around if you do. For example, millennials — yes, millennials — are more likely to stay at a job if it offers growth opportunities. Commissioned by Bridge, a provider of employee development solutions for businesses, a July 2018 study found the following: Sixty-seven percent of millennials would leave a job if it lacked growth opportunities and avenues for leadership. The study also found this: Offering career training and development would keep 86 percent of millennials from leaving their current positions. While investing in employees reduces employee turnover, what does a low turnover rate mean for your business? Increased productivity.
Why is a low employee turnover rate good for your business?
In addition to saving money — since a high turnover rate is typically costly in the long run — when your business’s turnover rate is low, you and your employees spend less time on training new employees. Just think about how much time it takes to train a recruit after someone from your team moves on for a better opportunity at a competitor. (Wouldn’t it be best to avoid all that if possible?) Instead of attending to the hiring process, you can use the extra time in your day to focus on other business matters, such as finding new revenue streams, so invest in employee growth to lower turnover rate. Not sure where to begin? Investing in continuing education is a good place to start.
How to invest in employee growth
Obviously, in the tech field, the number of certifications is growing (just visit CompTIA’s certification page to see what I mean), but not everybody can afford continuing education programs — especially junior technicians — to better themselves. To thank employees for their loyalty and hard work, be willing to reimburse them for certifications relating to their day-to-day responsibilities. When you think about it, investing in continuing education programs is a win-win for you and your employees. After completing the required training, they walk away with additional skills, which they can use wherever they go, and you, as an MSP owner, are improving your team’s effectiveness in a cost-effective way.
Invest now to reap rewards later
Think about it this way: It costs more to hire someone with certifications, so instead, try to hire someone — preferably an individual without all the credentials — who can grow with you and your business. Now, while this isn’t always possible, especially if the open position calls for someone with experience, if there’s an opportunity to hire someone who can grow with you, take it. Following this strategy will not only save you money in the long run but create potential growth opportunities for your employees to take advantage of when the time comes.
Everybody wants to grow, so if your employees aren’t given opportunities to improve themselves professionally, they’re less likely to stay loyal, which can cause some serious issues within your organization. Of course, lowering your employee turnover rate not only saves you money but time, allowing you as a business owner to focus on ways to grow and scale your business. Invest in your employees by doubling down on the skills they’re more than likely to use daily. This employee development strategy benefits not only your employees but you as a small business owner.