DESPITE a predicted labour shortage and the anticipated retirement of millions of working baby boomers, many companies assign employee development opportunities only on an informal basis, according to recent US research
DESPITE a predicted labour shortage and the anticipated retirement of millions of working baby boomers, many companies assign employee development opportunities only on an informal basis, according to recent US research.
As a result, organisations may find it necessary to move towards formally assigning training programs as part of a structured employee development process to develop current employees.
In terms of the actual development methods used, the research found that training programs, such as generic and cross-functional training, top the list of training methods most organisations use. The survey also showed a minority of companies use formal methods of employee development, including succession planning, job rotation and career mentoring programs.
The research, which covered 248 HR professionals, found that in addition to seeking new talent to replace the flood of retirees expected in the next few years, organisations must develop their current employees to avoid the loss of organisational knowledge and experience from those retiring.
“Many employers feel that the knowledge, experience, and skills employees acquire in their day-to-day tasks is sufficient for developing talent,” said Debra Cohen, chief knowledge officer at the Society for Human Resource Management (SHRM), which conducted the study.
“However, with so many key employees positioned to retire in the near future, companies need to take formal steps to ensure smooth transitions and business continuity. When the talent and knowledge of retiring workers walks out the door, every organisation needs to make sure they have others ready to fill the gaps.”
The survey found good reason for companies to invest in employee development programs. Although few organisations measure the return on investment of employee development programs, of those that do, almost all show a positive ROI.
However, the majority of organisations do not invest in formal practices, programs, or methods meant to address employee development.
With the growing presence of women and minorities at all levels in organisations, there is also need to specifically focus development efforts on these groups. The study showed, for example, that representation of women and minorities in managerial positions decreases significantly, as the level of management increases.
