Press Release

Training Costs Are Negatively Impacting Almost 70% Of Businesses

2 Mins read

Whilst 94% of UK businesses offer training to new junior employees, 34% have seen productivity fall due to needing to constantly devote resources to recruitment and training 27% of businesses have also had to turn away work due to internal talent shortages.

Recent research into recruitment inefficiencies has revealed that more than two-thirds (68%) of businesses have experienced serious issues as a consequence of the time and cost required to train and support new junior and graduate hires in their workforce.

According to survey data from emerging talent and reskill partner, mthree, 34% of businesses have seen productivity fall due to needing to constantly devote increased resources to recruitment and training. More than a quarter (27%) of businesses surveyed also had to turn away work due to internal talent shortages, 22% said that their cash flow has been damaged, and 21% reported that they have been unable to expand.

Extra Time And Training Needed

Despite 94% of businesses offering training to new employees, with 60% offering a structured training programme, 52% providing training on an ad hoc basis, and a third using external training providers, the research found that 72% of businesses have needed to invest in additional training and resource for new junior employees.

For instance, 39% of businesses needed to find extra time to familiarise junior employees with the specific technology used by the department, 38% needed to help employees with their softer skills, and 24% found that new employees were not as qualified as initially advertised – adding further time and resource pressures onto the onboarding process.

Interestingly, the research also revealed that whilst businesses are typically spending a month training up new junior talent, it can take up to six months before these hires start to add real value to the business.

Emerging Talent is The Future Of Every Workforce

Commenting on the research, Ben Town, global head of sales at mthree, said:

“Some of these figures look quite scary, and it’s possible that some businesses may never have really sat back and evaluated the impact of training and onboarding graduate and entry level talent. However, it’s important to remember that emerging talent is the future of every workforce, and, in spite of this initial outlay, businesses would struggle to survive without the regular influx of fresh, enthusiastic faces keen to make their mark.

“However, there are naturally certain roles and disciplines that require more in depth, specific training than others. In these situations, it can be extremely valuable to explore alternative options, such as working with emerging talent providers. By taking promising graduates with raw potential and turning them into productive professionals who immediately start contributing to the bottom line, last mile training can bridge the gap between education and the workplace and tackle many of the issues commonly associated with hiring graduate talent.”

Further Reading:

How To Praise Someone Professionally
Company Culture At Google
Behavioral Observation Scale
Questions To Ask New Employees

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