As hiring challenges continue, private companies plan to place importance on training or reskilling during the next 12 months, according to Deloitte’s December 12 private company outlook report on talent strategies.
Large companies are adopting a model that views importance of training and development for work as a set of skills instead of relying on roles that require extensive professional qualifications. This transformation on importance of training in the workplace, addresses the need for greater agility in skill acquisition in a market evolving at an increasingly rapid pace.
Training importance for companies
A study conducted by Deloitte with over a thousand HR professionals and executives worldwide indicates that 90% of executives are giving importance to training employees and that changes the way a company hires, trains, and develops its team, fostering more diversity by reducing the focus on academic qualifications.
Top performing businesses are redefining and optimizing their processes, to increase efficiencies and ultimately, support their staff to do more with less. How are they doing it? Our clients tell us that they’re investing in the training and skill development of their people. It’s not only delivering a strong return on investment when it comes to retention, but also higher profits for the benchmark organizations.
Skill-based hiring as per Deloitte
To be more competitive, companies are also focused on skills-based hiring, hybrid work and new compensation strategies. Importance of training and development for employees has become the major focus for the companies.
“As private companies juggle limited cash flow, aspirations for digital transformation and efforts to increase productivity, they’re relying on their own workforce to meet their business priorities,” Wolfe Tone, vice chair and U.S. Deloitte private leader, said in a statement.
“Private companies are leaning into reskilling in combination with skills-based hiring and hybrid work as part of a broader portfolio of talent strategies,” he said.
Importance of training employees as per survey
In a survey of 100 private company executives, 60% said cash flow may limit their ability to hire in the next 12 months. About 78% of C-suite leaders with annual revenues of $100 million to under $200 million expressed this sentiment, as compared with 41% of those at companies earning more than $1 billion.
Looking ahead, executives’ main business priorities include increasing productivity and investments in technology. To meet these priorities, leaders placed an emphasis on top skills such as IT, sales and marketing and supply chain.
Companies understanding training importance
To meet talent needs in the coming year, company executives said they’ll rely heavily on training and reskilling (43%), followed by hiring (26%), using contract workers (19%) and automation (12%).
To compete for talent, more than half of leaders said their organization plans to increase skills-based hiring, followed by hybrid work and implementing a new compensation strategy.
Benefits of staff training as per Deloitte
As per Deloitte, benefits of staff training help companies grow they include:
- Importance of training in the workplace could help the companies win the war on talent.
- Training staff can improve their skills, business efficiency and optimize process
- The importance of training and skill development improves staff retention and satisfaction
- Training importance even as per data proves drives profit and performance.
Importance of training and development
Learning and development offerings could help companies stay competitive as well. More than half of workers have indicated their companies don’t offer learning or training opportunities that would allow them to advance, according to an eLearning Industry report.
Training can also aid internal mobility, which has dropped in recent years after a peak in 2020, according to a report from The Josh Bersin Co. Encouraging internal mobility may boost employer flexibility and retention as well.
In 2024, 75% of CHROs surveyed said they plan to focus their human capital management strategies on employee experience and organizational culture, according to a report from The Conference Board. The majority also said they want to develop leadership skills and workforce capabilities.