Train to retain
Nearly three-quarters (74%) of businesses working across the visitor economy believe there would be a notable impact on employee retention rates if training budgets were increased, according to new industry research among HR directors and training managers. On average, respondents felt that budgets would need to increase by around 50% to have a significant impact on retention. The Retention Index research was carried out on behalf of the People 1st Training Company. It measured the levels and the factors affecting staff movement in the sectors that influence the UK’s visitor economy. Workers most likely to stay by being offered regular and relevant training were those on the frontline, where turnover rates are the highest of any group of employees, averaging 30%, but have dropped slightly in recent years. Turnover among middle managers remains static at 23% and among senior managers it is 21%, but nearly half of all respondents (46%) report that turnover among the latter group has increased in the last three years. The Index also revealed that although training spend on senior management has increased over the last four to five years, it has decreased for middle managers and frontline staff.
Director of the People 1st Training Company, Sharon Glancy, said, ‘Employers have told us how important leadership and management skills are going to be for the sector over the next few years and clearly this is being reflected in the Index. With the rate of turnover high amongst senior management, companies must make sure that their managers have the skills in place to do their jobs. This should not be at the expense of frontline staff however. Currently training budgets are not being targeted at the group most likely to be positively impacted by the investment. This will cause issues for employers if it is not tackled.’