Photo: movin’ up
According to the American Society for Training & Development, U.S. organizations spent about $171.5 billion on employee learning and development in 2010. But what good does it do a company if the very workers the organization spent money on to train will quit and take their newly acquired training with them?
I came across an article in the Wall Street Journal titled, “When Training Leads to Turnover” and found it interesting. However, it’s important to note that the title is a bit misleading since training (by itself) does not lead to turnover. Rather, it’s the idea that without an opportunity to advance/move up in a company, employees (even those who have received training) are more likely to leave compared to those who have opportunities to advance in the organization. As Silverman later clarified in the WSJ article, “employee turnover can increase after training if a company fails to also provide career development and opportunities to get ahead.”
Kraimer, Seibert, Wayne, Liden, and Bravo (2011) discovered that employees who’ve been trained by their company will leave if they do not see any chance to advance. On the other hand, workers who see a career opportunity within the organization will stick around. Thus, it would have been more fitting to label the WSJ article “When Lack of Career Advancement Leads to Turnover.” But then that wouldn’t be as eye-catching. In fact, the research study the WSJ cited is titled, “Antecedents and outcomes of organizational support for development: The critical role of career opportunities.” Note the last part of the title, “The critical role of career opportunities.”
Training does not occur in a vacuum and, by itself, is not enough to retain employees, if those employees do not see career opportunities in their future.
Researchers defined two important concepts: (a) organizational support for development (OSD) as “employees’ overall perceptions that the organization provides programs and opportunities that help employees develop their functional skills and managerial capabilities” (Kraimer et al., 2011, p. 486); (b) perceived career opportunity (PCO) as “employees’ belief that jobs or positions that match their career goals and interests exist within the organization” (Kraimer et al., 2011, p. 486).
Most notably, the researchers found that development support was associated with reduced voluntary turnover when perceived career opportunity was high, but it was associated with increased turnover when perceived career opportunity was low. In other words, even when organizations provide programs and opportunities to help employees develop their skills, if employees perceive that career advancement opportunity is low, they are more likely to leave.
Practical Implications: “Organizations should seek to manage employees’ perceptions of career opportunity if they wish to retain career-oriented employees. If organizational career paths do not lead to opportunities that match those desired by employees, they may choose to look for alternative jobs in the hopes that another organization will offer more desirable job paths. Given the high costs associated with staffing and turnover, expenditures for development support may be well justified, but only when employees perceive that there are career opportunities within the organization that match their career goals and interests. When many employees do not perceive desirable career opportunities, our results suggest that development support may simply provide them with the mobility capital to leave…” (Kraimer et al., 2011, p. 496).
American Society for Training & Development (ASTD). 2011 State of the Industry Report.
Kraimer, M. L., Seibert, S. E., Wayne, S. J., Liden, R. C., & Bravo, J. (2011). Antecedents and outcomes of organizational support for development: The critical role of career opportunities. Journal of Applied Psychology, 96(3), 485-500. doi:10.1037/a0021452
Silverman, R. E. (2012, June 25). When training leads to turnover. The Wall Street Journal [Online]. Retrieved August 2, 2012, from http://blogs.wsj.com/atwork/2012/06/25/when-training-leads-to-turnover/