One of my favorite stories in all my years of recruiting comes from a CEO I know. He went to a board meeting with 12% of his expenses budgeted for training and development of his employees. It was a large company with a serious turnover problem, and the board pushed back.
“What happens if we spend all this money on training, and these people leave?” one board member asked.
His answer was classic. “What happens if we don’t spend the money, and they stay?”
The budget was approved. And that answer is just as true today as it was the day he said it.
Stop Expecting People to Hit the Ground Running
When the market for talent is tight, it can feel nearly impossible to find the people you need. Many employers respond by holding out for the candidate who can “hit the ground running” and “run with the ball.” But the perfect, fully trained hire is rare, and you’ll pay a premium and wait a long time to find them.
The companies that win the talent war do something different. They hire people with strong ability and the right attitude, and then they invest in teaching them. Training doesn’t just fill a skills gap. It tells your people you’re betting on them, and people stay where they feel invested in.
Five Ways to Build the Workforce You’ll Need Tomorrow
- Bring back real training programs. Don’t just hand new hires a desk and a login. Teach them how your business works and how to grow in it.
- Pay to keep your best people. I used to think companies paying 25% more than market for certain positions were wasting money. Really they were making sure they held on to their people long enough to justify all the money spent training them.
- Partner with colleges. Work with schools to help them train the work force of the future, so graduates arrive ready to contribute.
- Show up at your local schools. Imagine what would happen if more CEOs spent a day at a K-12 school or a university, talking to the students and teachers about what the work force really needs.
- Think past next quarter. These efforts may not move this quarter’s earnings, but in the long run they put you way ahead of the game.
A lot of leaders agree with ideas like these, and very few act on them. That’s exactly why the ones who do stand out to the best candidates.
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A version of this article first ran in The Network!, my recruiting newsletter, in issue 12 (1998). The advice has held up, so I’ve updated it here.
I’m Joe Pelayo, an executive recruiter for 40 years and founder of Joseph Michaels International here in Dallas. We recruit for roles with base pay from 75K to 2 million, and one call to me reaches our network of 700 recruiters. Right now we have 1,633 open jobs.
And for a quick, upbeat look at the headlines, join me on The Top Five News Show, weeknights at 5 PM ET. Over 3.3 million viewers watched it in the last year.
Let’s Talk
Want to talk about hiring, training or keeping great people? I’d like to hear what you’re working on.
Call me at 1-800-786-1099 or email info@josephmichaels.com.
Joseph Michaels International, 13355 Noel Road Suite 1360, Dallas, TX 75240