“We provide training for our current employees, but we place a lot more emphasis on hiring the right person.”
Which is the better approach? Most say “Do both. Hire the best and invest in their development.” Sure, companies invest budget in both training and hiring. But most companies invest more dollars-per-person in training than they do in hiring.
For example, if it costs an average of $8,000 to hire a new employee, a company may spend an average of $12,000 per employee for training.
Not good. Research suggests that sixty to eighty percent of employee training is wasted—meaning that companies do not see lasting changes in employees’ behaviors.
For sure, companies get little return from the money they spend on training marginal producers. If you let whining, argumentative, mistake-prone, self-serving losers slip through your hiring screens, no amount of training dollars is going to turn them into cooperative, record-setting award winners.
For my money, I say take some of the training budget and redirect it to hiring the right person—the one who has the God-given ability (and character) to perform the tasks. If you do this, guess what? Training becomes a lot more effective.