Today, personnel, as well as their knowledge and skills, are one of the key resources of any company. It is the employees who ultimately affect the financial and operational performance of your business. However, hiring highly skilled workers is only half the battle. The rapidly changing world and the challenges of modern life force the company to constantly change and adapt its staff to new conditions. Therefore, it is crucial to provide all the necessary tools and opportunities for the professional growth and career development of your team.
Together with an official partner of SAP and a trusted provider of SAP solutions for business, we will try to figure out why it is important to invest in employee development and how SAP can help with this.
What Is Big Quit and Why Does It Happen?
The term “Big Quit” refers to an economic pattern where employees quit their positions at or near record highs. Why does this happen? Today, along with better salaries and corporate benefits, employees are looking for a solid foundation for professional growth and development. However, the statistics regarding corporate training are so optimistic.
As the Monster report shows, 95% of responders are thinking about quitting their jobs. Meanwhile, 45 percent of those polled said they would stay with their current employer if it provided clear development opportunities. At the same time, only 29% of companies have a comprehensive professional development strategy. It follows that career growth within the company remains the main stumbling block.
The market offers many solutions for employee training. And one of them is SAP SuccessFactors. SuccessFactors is a comprehensive solution for managing human resources, and the solution covers everything from attracting the right candidates to turning them into professional managers.
How Can SAP SuccessFactors Help?
Let’s look at the main challenges that companies face today in personnel training and see how SAP SuccessFactors can help organize the learning process while increasing all business indicators.
Decrease in a labor effectiveness is a direct result of the lack of a comprehensive employee development strategy. Employees with poor knowledge, skills, and talents will accomplish their duties more slowly and distract colleagues by asking for assistance. Moreover, untrained employees make more mistakes, due to which the company may suffer financial losses (for example, when an employee, due to a lack of proper skills, disrupted equipment).
The SAP SuccessFactors solution, being equipped with The Performance & Goals module, allows directing employees’ focus toward the company’s goals, thus increasing the company’s performance. Thanks to the solution, managers can monitor employees’ development levels and manage the company’s business objectives in real-time. Its features also allow analyzing each worker’s performance, enhancing it by 12.5 percent, providing feedback, and awarding teams based on their successes.
Increased Employee Turnover
Deloitte report shows, that due to a lack of possibilities for skill enhancement, 40% of employees quit the organization during the first year of their employment. Development opportunities and company’s earnings are undoubtedly interrelated.
Moreover, hiring new workers for the positions of those who quit is much more expensive than retaining qualified employees. That’s why employers should do everything possible to retain qualified workers, and the only way out of this situation is to offer them every opportunity for professional and career growth.
SAP SuccessFactors, a human resource management solution, may assist you with this. One of the main opportunities the solution offers is the creation of courses and programs and automatically sharing the materials with colleagues. According to SAP, the solution helps to increase staff retention and decrease employee turnover by 31%.
Decreased Employee Engagement
According to the Gallup reports, at least 15% of employees are not engaged in the working processes of the company they work for. Untrained employees are typically uninspired and disloyal, they are neither cognitively nor emotionally committed to their work. The lack of involvement directly affects the result of both the performance of the employee and the company as a whole.
And this happens not only at young companies that have just appeared in the market and that haven’t managed to establish all the processes. Even the most successful organizations might suffer ranking losses if they fail to train their staff. Ignorance of the latest trends, new market rules, and regulations will not only set you apart from your competitors but also can result in legal issues with documentation.
With the Compensation module, built in SAP SuccessFactors, you can reward employees based on their results and achievements, thus encouraging them to work harder. Companies can also use it to plan their budgets and reward options, such as yearly pay reviews or bonuses depending on the employee’s performance.
Even very talented specialists can be bad managers because of the lack of proper training. This happens because the skills needed for an ordinary employee differ from the skills needed for successful management. Additionally, the absence of professional training makes it very difficult to recruit qualified and prospective employees for managerial roles.
To have professional managers able to make the right decisions, you should provide a quality training and assessment process for employees in all positions. You can achieve this with the Succession & Development module, embedded in SAP SuccessFactors. The tool allows for searching for talented employees, choosing the right successors for key roles, and creating a special development plan for them. The solution will boost management efficiency by 37% in the long term.
Are you interested in SAP SuccessFactors or other SAP solutions? This is always a good idea to turn to a reliable technology partner. LeverX has 19 years of experience of work with SAP and has managed to improve the efficiency of businesses of all sizes and industries. Contact their experts and they will help you at all stages of your digital transformation!