Could Training your current employees save you money instead of hiring someone else who already has the skills you need?

New Hire, Company, Tampa, IT, Training, Skill Shortage

“Skills Shortage” seems to be an extremely active phrase as of late; however, it may be more beneficial for companies to train their IT employees after they are hired, rather than hire them with those skills already intact, according to reports.

One of the analysts who worked on the reports, Cushing Anderson, said a new hire with these skills already could cost the company anywhere from 1.5x to 3x the salary.  This obviously shows that training an  existing employee would save the company quite a bit of money, and you already know that the employee fits in well with the company.

Additionally, the pay rate of a new hire usually falls between 15% to 20% more than what the company expected or even wanted to pay, according to Anderson.  The cost only adds up because, “when the skill becomes plentiful, you don’t reduce their par,” he said.

A new hire’s cost to your company could also include a recruiter finder fee, which usually costs from 25% to 100% of the salary being offered.  It might also be a necessity to pay for travel for candidates for several interviews and pay for relocation expenses.

The better approach, according to Anderson, is to prepare for future IT needs by investing in staff training.

Training can fall anywhere on the spectrum from having the employee shadow someone with the skills the company needs to attending a fast-track boot camp training session.  It may even be cheaper to pay for a master’s degree in IT than to hire a new employee.

“There is always someone willing to move jobs if you’re willing to pay.”  according to Anderson.  What this quote basically means is, The idea of a skills shortage has more to do with what a company is willing to pay.

The IT jobs in highest demand involve big data usage and the ability to pull social networking into enterprise applications.  According to Anderson, other skill areas that are high in demand are, Cloud and cloud management, enterprise architecture, converged networking systems, mobile, video networking, and security.

If you would like to read more on how training your staff could say you more money than hiring a new employee, Click Here.

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If you are interested in Information Technology training for you or your employees , please give us a call at (813)387-3500 or visit our website at http://www.nhtampabay.com for our upcoming class schedule.

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