The Actual and Perceived Costs of Dropping Training and Talent Development Plans

Let’s face it, there’s not a lot of great news in the wine industry at the moment. Sales are down, winery traffic is slow, and employees are getting restless. When budgets get tight, training and talent development programs are often put on hold or eliminated. However, experts say that is the last thing you should do: Employees need expertise to provide exceptional service and effectively sell or promote wine. Without training, sales drop even further. And, if you are not continuously developing your team, they feel stuck and frustrated and may look for work elsewhere. ?

?Michigan-based human resource and consulting firm EctoHR published an aptly-named article, “Train to Retain! Why Training Your Team is a Critical Retention and Engagement Tool.” They assert that the challenge of keeping employees on the payroll has dramatically shifted. “A decent paycheck isn’t always enough to motivate them on the job. Training and development have become essential ways to retain and engage workers.”?

1. ?According to a Workplace Intelligence survey, 74% of Millennial and Gen Z employees will likely quit within the next year due to a lack of training and development opportunities.
2. Job candidates are evaluating potential employers based on their training programs. ?According to a Gallup survey, 65% of participants said employer-provided training is critical when considering a potential new job. Additionally, almost 50% of US workers said they would take a new job if it offered enhanced training opportunities.
3. Training and talent planning drives business growth according to a report from the National Center for the Middle Market. Companies with annual revenue growth of 10%+ were likely to have a successful talent development program that included learning and development initiatives.

Sandra Sabean co-founded Merity, LLC to help women identify their goals and provide a roadmap for achieving them. Merity recognizes the financial and strategic challenges HR leaders face posed by female talent attrition. According to them, “One-third of the female talent pool leaves their job due to insufficient developmental opportunities, costing organizations up to 33% of the departing employee's annual salary in replacements. This turnover underscores the pressing demand for an impactful retention strategy”.

?But what is the actual cost of attrition? LinkedIn Learning says that losing an employee could cost a company 50% to 250% of that employee’s salary. And disengaged employees cost an organization approximately $3,400 for every $10,000 worth of salary (34%)! ?

?Wine industry pros agree that training and development are essential. During a recent interview, Remi Cohen, the CEO of Domaine Carneros Winery, told the North Bay Business Journal that she cultivates her employees with as much precision and care as her premium grapes and feels that developing human capital is paramount to retaining skilled employees in a tight labor market. ?

?“People are our biggest asset,” Cohen stressed. “You have to begin building the foundation there. We’ve created new positions and a culture of internal promotions at the winery. For people to join the team and see there’s growth opportunities, it is really valuable.

?“There are all the hidden and real costs of having to hire and train new employees,” Cohen added. “If you have good employees on your team, you want to do your best to retain them.”

?SommelierBusiness.com recently referred to a 2022 ProWein Business Report which revealed an alarming shortage of skilled sommeliers and wine waiters in the on-trade. Eighty seven percent of hotels have grappled with staff shortages, and 66% of restaurants have also felt the pinch. They offered the following solutions for retaining talent:?

1. Invest in Education: Partnering with sommelier training programs and educational institutions can nurture the next generation of wine professionals. Scholarships and training initiatives can also make wine service careers more attractive.?

2. Competitive Compensation: Appreciate the skills and knowledge sommeliers and wine waiters bring to the table. Competitive pay can help retain and attract top talent.??

3. Foster a Positive Work Environment: Empower sommeliers and wine waiters by providing opportunities for career growth, mentorship programs, and a supportive workplace culture.?

?The bottom line is this: If you’re considering cutting back on training and development to reduce costs, you might want to reconsider. Instead, use these tools to keep employees engaged, motivated, and educated while avoiding the turmoil and expense of turnover. ?