Promote workers within 2 years of hiring or risk losing them, suggests ADP research

In an ever-changing workforce, both employees and employers are focusing on closing the skills gap, to ensure the right people are in places to drive both business and personal success.

However, less than a quarter (24%) of global workers believe they are equipped with the skills needed to advance in their careers, with only 17% of workers sharing that they believe that their employers are investing in developing these skills.

This is according to research from HR innovation platform ADP, which analyzed 51 million US workers, to explore advancement rates for employees. Pulling these findings together, ADP’s The People at Work study is a global endeavor that examines the world of work through the lens of worker sentiment.

“We found that few workers were confident that they have the skills they need to advance in their careers,” Dr Mary Hayes, Research Director at ADP Research, explains to UNLEASH in an exclusive conversation.

“Among people with some college or vocational training, that number rose to 27%, but among workers with no post-secondary education, only 18% were confident in their skill level.”

From this, she surmised that “most workers feel ill-equipped to get ahead,” explaining that knowledge workers feel the most supported by their employers, compared to those who work in shift or cycle work.

Is upskilling the key to staff retention?

Of the millions of workers analyzed, ADP found that only 3.8% learnt new skills or have had the opportunity to upskill within the first two years of being hired. 

However, the research also found that when employers invest in their workforce, knowledge, skilled and cycle workers are all less likely to leave.

Yet when employees do not feel that their employer is investing in their future, they’re more likely to look for opportunities elsewhere, with 75% of workers leaving their business before getting promoted within their first 24 months at the company. 

What’s more, less than 1% of employees stay after three years if they have not received a promotion.

Supporting this idea, Dr Hayes explains: “Workers who want to advance feel they must seek out development opportunities elsewhere.

“HR leaders can use on-the-job training opportunities to develop a stickier workforce. 

Even among workers who are confident in their skills, training opportunities could have a big impact on employee retention. 

“When these confident workers believe that their employers are investing in them, they’re twice as likely to say they have no intention of leaving their organization, compared to workers who have the skills but lack on-the-job training opportunities.”

Additionally, employees who feel strongly that they’re receiving adequate training and development opportunities are nearly six times more likely to recommend their company as a great place to work, whilst also being 3.3 times more likely to describe themselves as ‘very productive’.

“Upskilling might be a particularly powerful tool for retaining cycle workers,” Dr Hayes adds.

“When cycle workers feel they have the skills needed to advance but lack any further investment from their employer, they’re more likely than other workers to leave.”

With this in mind, is the key to increased staff retention as simple as upskilling employees – or do employers still need to do more?