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(1) Improved Employee Retention

Updated: Jan 19, 2023

We will begin a series of topics on the benefits of employee training as it relates to the CNC machining industry and why it's critical in today's manufacturing environment.

A common objection we hear on this subject is, "Why should I train my employees, they will just leave and go somewhere else."

In part 1, we are going to unpack the first reason you should break out of old habits and provide continuous training to your CNC employees. And this reason happens to a very costly reason. Reducing employee turnover.

Employee Retention

Employee retention is often the easiest way to maintain stability within an organization, but many employers continue to struggle in this area, showing continually high turnover rates. The costs associated with employee turnover, including production loss, recruiting, interviewing, re-training and so on, can be substantial. Employee Benefits News reported in 2017 that turnover can cost employers 33 percent of an employee’s annual salary. The culprit? The hiring of a replacement. To put a dollar amount on it, if the employee earned a median salary of $60,000 a year, this would cost the company $20,000 per person — on top of the annual $60,000.

Studies show that it is during the initial 90-day period, that a staggering 45% of new employees leave a company. But why? And how can we reduce this this costly turnover business?

To answer this question, we must first understand why employees are leaving new jobs in the first place. The answers might shock you.

1. You Don't Have a Structured Onboarding Process

Believe it or not, not having a structured onboarding process is at the top of the list. The last thing any new employee wants is to show up on the first day only to find his or her team unprepared without any form of structured onboarding program. Start off on the right foot by having a structured process to bring new hires up to speed in a systematic fashion. Let’s be honest, most employees don’t have the time or desire to devote to working with new hires, but we know it’s a critical step to make sure new hires stick around.

Beyond sharing instructions for the first day - such as when and where to arrive, ask new employees to complete their onboarding paperwork before they come to the office on the first day. But this is just the beginning for new hires that will be responsible for running CNC machinery. Machine operators with little experience are being put into a potentially dangerous environment full of machinery, sharp tools, and the occasional jaded machinist (we all know at least one). A minimal investment in these individuals in the beginning will be well worth it and reap rewards financially and help build stability in your organization.

2. Expectations and Goals Are Unclear

Recent data found that 43% of employees who left a job within the first 90 days did so because the day-to-day job wasn't what they were expecting. Make sure your job descriptions include an accurate overview of the day-to-day responsibilities expected of the role, so you attract top candidates who are motivated by these responsibilities. During each new employee's first week, these responsibilities should be discussed with his or her manager, along with any key goals or metrics that will be used to measure success in the role. If an employee's experience doesn't match what they set out to do based on reading the job description, or it's unclear what's needed to succeed in the role, they'll be more likely to look for other job opportunities and leave sooner rather than later.

3. Training Stops After Initial Onboarding

To succeed and stay motivated in their roles, your employees need continuous training that goes beyond any general onboarding sessions during the first week. This training should be geared towards enhancing their skills and enabling them to be more efficient in their roles. Options includes include interactive web-based classes, training sessions offered dire ctly by your business and training offered from outside sources.

Your employees might also come to you proactively with recommendations for training programs or professional development events. Set aside some budget for these requests. Not only can continued training help employees contribute more to their business, but your employees will feel valued knowing you're willing to invest in their growth on your team. Also, make sure to highlight your commitment to employee training across all hiring related materials to continue attracting top talent. Any time you lose an employee, it's very costly to your business from both productivity and operational perspectives. Avoid the mistakes listed here, and be open to continuous employee feedback to ensure your employees feel motivated to stay with your team for the long haul.

Training should cover:

  • Job training: Making sure that they are taught the basics of their new role properly so that they begin with some confidence and momentum in the role, and to ensure they understand what they are doing.

  • Company culture training: One of the most commonly missed and yet important pieces of training that I recommend to include for new hires, is in the company culture, background, and ethics. Such training can help the new employee to really feel a part of the company.

  • Leadership training: For new hires who are taking on a management role in your company. Many managers rise through the ranks but often have not been trained in key areas such as leadership, communication, or how to manage different personality types (to give a few examples).

G3CNC takes the burden off of your internal resources by providing all the training resources that a modern machine shop needs to keep your employees engaged in their work, performing at their best, and increasing your profit margins.

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