Four decades ago, a new employee likely expected to spend their entire career with the same company. As the years passed, they might rise through the ranks and receive enough on the job training to succeed in their role. Neither employee nor employer gave much thought to continuing an employee’s education. For this generation, there was a social contract between employers and employees. Loyalty was valued, and it went both ways. Companies rewarded longevity and loyalty and employees put company priorities before their own. It was also industry-standard for companies to offer pensions to attract and retain valuable employees.
The combination of a lower unemployment rate and increased number of jobs means employers now need to focus on retaining employees. As opportunities abound, employees are enticed to leave. High turnover rates aren’t good for business — one employee turning over can cost a company close to $50,000 in recruiting, training and lost productivity costs.