More than three-quarters of managers find it better to develop staff internally than to bring in new talent, according to a survey from learndirect Business.
More than three-quarters of managers find it more beneficial to develop staff internally than to bring in new talent, according to a survey from learndirect Business, an organisation which helps companies develop the skills of their staff.
Almost half (44 per cent) of the survey’s 1,189 respondents say their organisation has saved money through developing existing staff, while less than a fifth (17 per cent) disagree with that statement.
More than half (52 per cent) of those polled agree that developing staff internally has helped their organisation retain talent, while ten per cent disagree.
Dr Emma Parry, senior research fellow at Cranfield School of Management, comments, ‘There are a number of benefits of nurturing talent rather than buying it in from outside. Firstly, it’s more cost effective.
‘We also know that it motivates staff. Staff like to be trained: it makes them feel valued.’
The survey finds that external recruitment has an important role to play. Half of all respondents from companies with more than 250 employees, and a third of those at smaller companies, say that hiring from outside brings new skills and attitudes to the organisation.
Companies that are growing their turnover are more likely to hire externally, with 62 per cent of companies taking this route compared to 53 per cent of those whose turnover is shrinking.