What company would spend thousands — or even millions — of dollars, year in and year out, without knowing the return? When it comes to training and workforce development, lots of them.
To Better Train Workers, Figure Out Where They Struggle
What company would spend thousands, or even millions of dollars, year in and year out, without knowing the return? When it comes to training and workforce development, lots of them. The business model of Generation, a youth employment non-profit founded by McKinsey & Company where we both work, is based on that assertion.
One key to our training is to identify ahead of time the challenges that lead employees to leave positions, which is costly for employers. By tailoring our training to those challenges, we can reduce turnover, therefore saving employers money.
For example, in the US and India, we train nurse assistants for hospitals and nursing homes. These are stressful jobs, with high expectations and high turnover. Employers pay for this; we estimated the costs of high turnover at three to four months of salary per year per position.