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Training vs. Hiring: How Businesses May Save Costs And Hire Valuable Assets [Infographic]

Is employee training a silver bullet to resolve talent acquisition challenges and decrease employee turnover?
By Katrine Spirina, Content Manager
August 27, 2021
A good consultant would answer that everything depends on the level of an organization, services offered, and business objectives.

One thing is for sure: whether you need to assemble a new team, supplement current projects with more talents, or replace current ones, you will do everything to avoid frequent voluntary turnover. It negatively impacts productivity, team spirit, and an organization's revenue.

When you need to fill in a job, it is natural to review both trainees and the best candidates on the market. Either way, things may go right. Let's see what you can gain and lose when you opt for hiring or employee training methods.
Hiring New Employees: What It Costs and When It Is a Better Option
Sad but true, hiring may entail financial risks and result in failure. According to PeopleKeep, average costs to replace an employee are quite substantial:

  • For midrange positions, replacement costs may amount to 20% of the annual salary. For example, the cost of replacing a manager with $40,000 annual revenue would be $8,000.

  • For highly-educated executive positions, this figure goes up to 213%. So, if a CEO receives $100,000 per year, the replacement costs would be $213,000.

Among the price-forming factors are low productivity of a new employee at the beginning, possible client dissatisfaction and project delays, lost engagement, negative impact on a team's morale, and the risk of a misfit for a role.

Despite all that, hiring provides a range of advantages you should take into account:

  • Candidates well-versed in their professional field may promptly join your organization to bring in best practices and valuable expertise.

  • Tech evangelists or technology gurus can't be trained within several months. If your organization needs someone with that level of expertise, you are better to surf the job market.

  • Depending on the position level, onboarding may take less time than training, which means a new employee will start project work in relatively no time.

  • Organizations usually hire for already vacant positions. Training may imply the need to support an employee bench, which also requires resources.

At Solvd, we prefer running employee training programs. Read on to learn why and what advantages we gain.
When a Train-to-Hire Approach Changes the Game
We choose employee training as the best option as this enables us to vet candidates willing to master new professional skills and do their best to fit into the project. Our tutors and mentors at Solvd Laba, free educational QA and development courses, think that there are irreplaceable benefits of training:

  • It's a matter of costs. If an organization has established training practices and tech professionals capable of teaching others, that can save time and money.

  • Trainees are more loyal to an employer who has become the first one to give them an opportunity to realize their potential.

  • Free-of-charge training programs are the investment that will pay off immensely.

  • A train-to-hire approach allows tutors to have students mastering the knowledge and skills they will need for real work.

Check the infographic below where we have summarized our 5 years of employee training experience, key stats, and outcomes.

What Training Means For Solvd
We believe that employee training and development isn't an assembly line. Our tutors focus on the careful training of loyal team members for long-term and fruitful cooperation.

We tailor courses to meet the needs of our clients and projects. As an outcome, we get junior specialists eager to join the team and grow professionally.

When a course is over, our newcomers receive support from mentors who help them get into a project and explain the project business logic. The onboarding might take about two or three months.

In addition to successful QA and test automation courses, we have launched a JavaScrip development course. The first group has successfully finished the course, and several graduates have already joined Solvd.

Some of the former students may later leave us for other opportunities. But we rest assured: they have learned all the necessary skills to become successful elsewhere in the niche.
Conclusion
Employee turnover is a scourge for any organization. You should weigh the pros and cons of hiring vs. training new employees before making up your mind. Consider your business needs and expectations before deciding for yourself if your organization is ready to start training or hiring will work better for you.

Think carefully about the costs and time frames necessary in each particular case. That would help you avoid unnecessary spendings, project delays, and the hassle of explaining replacements to a client and team.