News: Performance Management
Training can aid retention, research shows
01 September 2008
Firms with a good range of training programmes have lower than average turnover rates, according to research by Computer Economics.
The findings were reported by vnunet.com and also show that staff prefer good training to a wage rise.
"IT managers often worry that investments in training will be reaped by other organisations when IT workers shop their new skills around," John Longwell, director of research for Computer Economics, told the news provider.
"But this study indicates that investing in training is actually the best way to retain employees."
Competitive salaries and benefit packages are important for recruitment, but enhancing working environments and quality-of-life incentives are more important in retaining employees, Mr Longwell added.
He stated that the typical organisation in today's environment can see a five per cent staff turnover as a "normal cost of doing business".
Computer Economics' findings follow a survey of business owners by professional services firm Deloitte, which suggested that over a quarter plan to make training their "single biggest financial investment" during the next year. 
