Get a New Hire or Train an Existing Employee? ----------------------- Management Consulting Service

Get a New Hire or Train an Existing Employee?

Many companies face the dilemma of whether to hire new employees or train existing ones. As per the research by Blattberg and Deighton, it is usually cost-effective for an organization to retain its current employees rather than replacing them or hiring new ones.

Employee turnover can be a costly issue for organizations, as hiring new employees involves various expenses such as recruitment and selection costs, training and development expenses, advertising costs, and lost productivity during the onboarding process.

In addition, dismissing existing employees can lead to negative effects such as a loss of productivity and morale among remaining workers. Therefore, it is crucial for employers to consider the cost and benefits of hiring new employees versus training their existing staff. Before making any decision, organizations may want to evaluate the skills and knowledge of their existing employees to see if they can be trained for new roles or responsibilities.

Evidence shows that implementing accommodations for employees is also a cost-effective way to retain existing staff members. Moreover, it is important to keep in mind that promoting from within can boost employee morale and motivation to perform well. Employers should weigh the costs and benefits of hiring new employees versus investing in training existing staff members.

However, despite above claims, there are also situations where employers decide to onboard a new hire when the demand of skills and responsibilities for the position are very high that existing employees couldn’t be trained within a short time, or when the existing employees do not have the vision to develop themselves to fit the position or show any remarkable achievements in their work to prove their fit for the opportunity. Besides, there are also other factors such as the needs to fill the new position is critical and urgent to ensure the success of the project.

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