Training Vs Hiring: Which Is Better for Your Business?

If you have found yourself in the predicament of needing to bolster your workforce, but do not yet know which direction to take, there is no need to panic – the long-standing question of when and when not to hire is fairly commonplace.

In short, there is no certain answer. A competent workforce often needs training to remain effective regardless of who you decide to hire, yet sometimes, a new position needs to be filled to pick up the slack.

Here are some tips to help you decide whether or not to invest your time and money into searching for the ideal candidate, or to train your current employees.

The Cost

One of the top concerns of small businesses everywhere is how to make the most out of finances. To ensure that your decision is the most cost-effective one available to you, there are a few points worth considering, such as:

• Can you afford the wages of a new hire?
• Which types of training should I offer?
• Should I outsource or develop in-house training opportunities?
• Is the ROI worth it for an entirely new staff member?

Generally, implementing training methods is far cheaper than hiring a new candidate. Thanks to some great options like a cloud enablement program, offering a company-wide up-skilling opportunity is easy and cheaper than ever before.

If you need the extra personnel however, but do not want to stretch your budget, there is little you can do outside of setting up an apprenticeship program, an internship opportunity, or hiring freelancers.

Training Can Help Retain Talent

Talented employees will likely be able to work out whether or not their job is offering them no room for progression or professional growth. This can lead to workplace dissatisfaction and in the worst case, you might lose your best employees altogether.

Offering training can help you retain your talent, as it gives them a reason to stick with your company for the long haul, especially if the training you offer leads to a higher quality of working life.

Company loyalty needs to be earned, it is not arbitrary, nor is it established by default. Helping your employees to grow alongside your company is a wonderful way to nurture this important element of business.

How Important is Hiring for a New Role?

Before you make your decision to start the hiring process, which can be extremely lengthy and yield less than desirable results in some cases, it is worth thinking about whether you are desperate to fill an entirely new role or not.

Training your current employees can help them take on more responsibilities, perhaps negating the need for a new staff member, while saving money in the process.

That said, if you need to fill a specialist role, it may actually be quicker to hire, provided you can afford the wages.

ROI

Your potential return on investment should be at the forefront of your mind when making the decision, and if you are still not convinced, there is no harm in testing the water with a few job advertisements, while at the same time, shopping around for training opportunities.

Before you commit to anything, addressing your current monetary situation is a must.