Walgreens Employee Training and Retention

Introduction 

Employees’ retention is one of the most troubling issues to the managers today. The cost of losing an experienced and skilled worker to another company and the turnover costs involved in the hiring of the new employee are some of the problems that managers have been dealing with when it comes to the management of human resource. Every company would love to retain their employees for as long as they can to avoid incurring costs during the hiring of new employees. Studies have shown that employees’ turnover costs take up to more than 50% of the employees’ costs, showing how constant hiring of the new employees can be costly for firms. At the same time, employees’ demands are rapidly increasing, and now the workers are looking at other factors beyond just the pay increment. According to one survey, a third of the newly hired employees quit their jobs within one to two years of work. Out of the many reasons why employees quit, 60% leave due to career stagnation and lack of career development ( Das&Baruah, 2013 ). A study by Glassdoor found that when an employee works in a company for one year in the same position without training or promotion, they are likely to leave. This has forced companies to shift their strategy to employee training and development as a core method to increase employee retention. Training of the employees increases the retention rate because it helps the employee to develop a broader sense of self-worth while at the same time giving them opportunity for career development. 

Training and Employee Retention 

Employees come in and go out of the company on constant basis, and this has been so frustrating to the managers who must continuously replace these employees. The major problem when employees go out continually is the turnover costs incurred when hiring new employees. These costs can come as both hidden and evident costs. According to research, the estimated hidden turnover costs, including the ones incurred in the interviews, can run up to 150% of the company’s annual salary. Turnover is costly to the companies and thus must be avoided. While many firms try to retain employees by increasing their pay, the demands and expectations of the employees are slowly changing. Workers are no longer looking at the salary alone, but are also focusing on other things. Studies have shown that one of the primary reasons that make employees quit their jobs for another is lack of career development and growth ( Anis, Nasir & Safwan, 2011 ). Employees want to feel the self-worth and to see that their career has not stagnated. They hence love to work in a company which can help them not just get better pay but also develop their career path. 

Training has been identified as one of the leading programs that can help employee feel that their career is developing and that they are worthy to the company. Currently, firms are investing millions of dollars in training and development of the employees because of the apparent benefits that they expect to reap. According to a survey, a third of the newly recruited employees quit their jobs for another within just one year. From the study, 60% of those who resigned mention career stagnation and lack of training in the job. Another research also showed that lack of career development is the main reason why most accountants decide to stay at their firms rather than get employed elsewhere ( Anis, Nasir & Safwan, 2011 ). These statistics shows how employees value career development and how vital employee training can be in the retention of the workers. 

The first way in which training of the employees can increase retention is based on the fact that training makes employees feel empowered. When employees receive training, they think that the company is willing to empower them and make them better professionals who can also become great future managers. No employee is ever satisfied with their current positions, but all have goals of reaching higher positions in their future career. Training thus offers them that opportunity to be empowered and be prepared to handle any task in the organization. These, according to the employees, offer them a chance to reach their career goals in the future. They feel that they have been given an opportunity to grow in their positions and feel good about their work. Empowerment also builds a closer relationship between the employees and the management. With the chance to get empowered and have an opportunity for career growth, employees will be willing to stay at the company and continue offering their services for as long as possible. 

Offering employees with an effective training programs make them feel valued and wanted by the organization. They think that their presence and services are appreciated by the firm, who want to see them provide the best for the company ( Anis, Nasir & Safwan, 2011 ). It shows that the firm see value in the skills of the employees and that it is worth investing in these skills to make them develop. When the employees feel wanted and valued, they will be willing to remain at the job and continue offering their services. At all times, it is the nature of human being to want to be where they feel valued and appreciated. No one wants to stay in a place where they are seen as worthless and taken for granted. As a result, the employees who receive effective training programs will be willing and ready to remain at the job because they feel the company appreciates their skills and contribution to the company. 

Training provides the opportunity for the employees to learn and develop their career. The training programs can act as learning tools for the employees who can gain new skills and knowledge capable of helping them in their career development ( Hassan et al., 2013 ). No employee wants to see career stagnation as they work. All that employees want is to know that they are making some developments and progress towards their career growth and development. Through training, the employees can acquire new useful skills which can help develop their careers. They expect the firm to offer them continuous learning opportunity or reimbursement. As long as the firm can provide effective training programs that will provide learning opportunities for the employees; they will be willing to remain in the company for as long as possible. Studies have shown that one of the main reasons employees move from one company to another is due to lack of learning opportunities and career stagnation. Therefore, a company that provides employees with proper training programs that they feel will help them in the career development are more likely to retain most of its employees and avoid costs associated with losing employees to other firms. 

Training programs can also increase satisfaction rates for the employees in the job. Effective training program is essential for the realization of the satisfaction of the employees at the job ( Hassan et al., 2013 ). Training increases the skills of the employees in a particular area while at the same time increasing their value to the firm through increased efficiency. Work satisfaction begins with the employees receiving a positive feedback from the managers. When the employees are well trained, they are more likely to have a successful completion of the projects and receive a positive feedback from the manager. Success and positive feedback creates a general feeling of happiness and satisfaction at work. Satisfaction and happiness, on the other hand, leads to commitment of the employee, who will be willing and ready to offer his best without even being supervised. This satisfaction can also lead to some employees taking up additional responsibility without asking for salary increment because they feel motivated by the success and positive feedback that they receive. With this high level of satisfaction and job motivation, employees will be willing to remain in the firm for as long as possible thus increasing retention rate for the firm. 

Effective employee training programs creates an opportunity and room for promotion. All employees want to rise to higher positions as they progress with their career. In fact, studies have shown that employees who remain in the same position in a company for over a year is more likely to quit the job ( Hassan et al., 2013 ). Training help employees acquire new skills and knowledge in various tasks through continuous professional education programs. Most employees see training programs as an opportunity to go to higher career levels after they have gained extra skills. Many employees after undergoing multiple training programs will apply for more senior positions within the company. As long as they receive the training, the employees will be willing to stay in the company for as long as possible until they can attain their goal of rising to the higher ranks. Training also provide the employees with the skills to manage advanced tasks and activities thus eliminating the need for the company to higher another person for such tasks. To retain employees, firms should, therefore, provide adequate training that offers opportunities for future promotions. 

Training helps increase the morale of employees by making them feel valued and wanted by the firm. Morale of the employees is the primary factor for improving productivity in an organization. Employees who are not motivated do not have the morale to work and are more likely to quit. When employees receive training, they feel valued and cared for, and this feeling make them develop a positive attitude towards work ( Hassan et al., 2013 ). This is then taken to productivity and increased job performance. Any employee with boosted morale and high levels of motivation will always look forward to working for the company and helping it realize its goals. They are thus more likely to continue staying in the firm and look forward to long-term engagement with the company. While other studies have always shown that pay can affect the morale and motivation of the employees, there are also other factors which play a role in this. Employees may receive better compensation but still feel less motivated to work in a firm, and at the end of the day, they may quit. A proper balance between better pay and training can thus help boost the morale of employees and keep them at the company for an extended period. 

Types of Training Program Provided by Walgreens 

Walgreens is one of the America’s largest pharmacy store chain. The company focuses on filling prescriptions, health products, wellness products, health information and photo services. The company has been known for its welfare and training programs that it has created to help its employees develop their career and increase their service delivery for the customers. As an American most loved pharmacy dealing in health and well-being, the company has about 240000 team members across all its branches making it one of the largest employer ( Anis, Khan & Humayoun, 2011 ). The company has acknowledged that having a team that is inspired, passionate and knowledgeable staff can help develop the careers while at the same time providing the best experience to the customers. The company has been in the recent years made considerable investments in bringing tools and programs that can help the staff members to grow their skills deliver their full potential and move towards the realization of their career goals. 

Walgreens Company in 2013 founded Walgreens University as one of the resources to help it offer thousands of training as well as leadership and career development programs for its workers. Walgreens University provides these training programs online at its regional campuses located across the United States. Walgreens University was constructed to assist offer education programs and opportunities for the team members of the organization so that they can grow their career, improve themselves while at the same time making better the services they offer to the customers ( Anis, Khan & Humayoun, 2011 ). Currently, Walgreens University offers several courses that have been developed to help improve the career of its staff members. The various training programs that are provided by Walgreens to its staff include career development programs, business lessons, and leadership training programs, training on pharmacy technicians and continuing education courses for the pharmacists. 

The first type of training program that is offered by Walgreens to its team members is the career development programs. The company provides training programs that are aimed at helping its employees develop their career and rise to high career levels within the organization or even outside ( Anis, Khan & Humayoun, 2011 ). Several groups of people have developed successful career paths and the company while many others have realized their full potential and talents through passion as they move from one department to another within the company. All the members of the company receive support from the top management, which provides tools and necessary resources to help build the careers. The programs range from mentorships to formal certifications as well as training, and the company is always ready to provide support needed to maximize the potential of the team members. The company values the career of the team members thus providing resources that can help people move their career from where it is today to where one wants to move it to in the future. This makes employees feel cared and valued by the company as they are provided with the opportunity and resources to better their career. 

The company also offers training programs on business through its Walgreens University business school. Irrespective of the position one holds in the company; there is business school which provides business lessons to the team members. The business schools function as essential career resources which encourage one to their skills along the current business unit while at the same time taking a more in-depth look into other broader areas of interest ( Dhar, 2015 ). There are merchandising schools which train team members on the planning and store experience. There is also beauty school training on beauty management allowing one to become beauty consultant, advisor or an expert. Many areas of business are learned so that the team members who would like to expand their business knowledge can have the opportunity to do so. When the team members have passion for beauty and combine it with expertise, they will be able to offer a unique and good experience to the customers of the company. 

Walgreens also provide training on leadership that is offered at the Walgreens University leadership school. The company believes that making great leaders is at the head of excellent experience for both the employees and the customers. The team members are given training on leadership skills and abilities so that they become great leaders. The company focuses on ensuring that team members have leadership skills to enable them provide the best care for the customers ( Dhar, 2015 ). Leadership inspiration and collaboration is at the core for the company to realize its objectives. There is several leadership programs for all categories of workers within the company so that they become good leaders in there are of work. This has helped employees build their leadership career and increase their chances of becoming future great leaders. The company focuses on training leaders who can help develop the business and make it grow both today and into the future. 

Furthermore, the company provides training on pharmacy technician certification to increase the skills of the team members on the pharmacy industry. On completion, members can be provided with college credit thus increasing their career development. The company also supports the training and awarding of the pharmacy technician certification board for all the team members who have successfully finished training ( Dhar, 2015 ). This is done by providing classes, study materials and other resources aimed at ensuring the team members complete the training. At the same time, the company offers training on continuous education courses for the pharmacists. These are provided as online courses from the Walgreens University to facilitate continual learning for the team members. All these training programs offered by Walgreens Company provide the employees with an opportunity to develop and grow their career and leadership skills. This has led to high rates of employee retention at the company. 

Solutions to the Training Problems in the Organization 

One of the significant challenges that any company undergoes when training the employees is the costs challenge. Training is expensive and consumes a lot of resources of the company, and unless appropriate measures are taken to ensure cost-effectiveness, the company might run into losses. Usually, the training budgets tend to be small while the resources demanded during training are expensive. However, this can be solved by doing most of the training online. Online training classes eliminate the need to travel from one point to another while also reducing on the facilitation costs ( Daft, Murphy & Willmott, 2010 ). Online learning for the employees can be more cost and time saving as compared to the physical training which require not only a lot of resources but also much time. The introduction and use of cost-effective and high performing LMS can also help minimize the cost of training. While it remains true that employee training and development is beneficial to the company in many ways, failing to observe expenses can always result to costs exceeding the expected benefits. 

Another training and development challenge that is faced by the company is the tight schedules for the employees. Maintaining a healthy work-life balance is something so crucial for the productivity of the employees. Employees have to be on the job working, spend sufficient time with the family while at the same time get themselves some time to go and attend training sessions ( Daft, Murphy & Willmott, 2010 ). This becomes hectic for the employees who could get exhausted, and this might affect their productivity. At the same time, dedicating part of the working hours to the employees to go and get training can also disadvantage the company. A manager must, therefore, find a clear strategy to help the employees balance between work, family and training time. The solution to this can be online learning and raining where the contents are posted online so that the employees can access them at their free time even while they are at home. Sharing the video of lectures online so that workers can access them and do their learning can also help solve this challenge. 

Offering training programs that might not be relevant for the employees is also another problem with the employees training. Some training programs offered to the employees can be too generic and lacking personalization to specific roles and skills in the organization. Such generic training programs are usually straining and can take too much of the learners time while at the same time forcing them to master contents that might not after all help them achieve their career development ( Noe et al., 2014 ). To solve this, the organization group the learning outcomes and offer training programs that are useful in assisting the employee to realize their career goals. Providing the right and practical training is the only way both the organization and the employees can benefit from such programs. Otherwise offering training programs that are irrelevant can only make the organization waste its resources and time yet the benefits of such trainings cannot be realized. 

Training and development of the employees require their full engagement, cognitive, behavioral and emotional. However, lack of engagement can lead to poor retention of knowledge, passive learning and low levels of commitment. This can lead to low outcome from the training as employees may not maximize the best out of the training. Managers must, therefore, find ways to help the employees develop commitment to the training so that they can grow and develop their skills. This can be done by using a combination of different training and learning styles while providing training so that the employees can increase their level of engagement. Creating a learning culture in the organization can also make employees boost their emotional engagement which can then lead to enhanced learning and thus growth in the career and skills. 

Cost Benefits of Training Existing Employees versus Hiring New Ones 

Human resource managers are usually faced by tough decisions whenever an employee quits the organization. The decision on whether to recruit new employee or train the existing one has been a decision that managers have to make. However, the concern while making such a decision has been on the issue of cost. While both hiring new employees and training the existing ones incur costs, one seems to be more expensive than the other, not only in terms of financial resources but also time. Therefore, human resource managers must make rational decisions whenever they want to choose between hiring new employees and training the existing ones to take up a vacancy when an employee has resigned. 

Hiring new employees will force the company to incur recruitment costs. According to survey, turnover costs have been estimated to represent up to 90% of the total annual salary of the employee. The costs of making job adverts and conducting interviews are very high while also time-consuming. Companies have been reported to incur thousands of dollars when hiring new employees thus increasing the overall costs to the company. Furthermore, the recruits will have to undergo training before they can be knowledgeable enough to understand their job ( Kompaso & Sridevi, 2010 ). This is another cost that the company will have to incur. Even as new employees are hired, they come from outside the organization with different ideas, and there is no guarantee that they will fit into the culture of the organization. Time, on the other hand, is also a resource that has to be managed. The process of hiring new employees is too long and time-consuming. The human resource manager will have to engage in many activities to bring a new person into the organization. All these makes hiring of new employees one of the most expensive activities within human resource department. 

Compared to hiring new employees, training the existing ones can be cost-effective and beneficial to the company in many ways. First, training is not as expensive as making new hires because even the newly hired employees will still have to undergo training in addition to recruitment costs ( Blatter, Muehlemann & Schenker, 2012 ). This, therefore, makes training of the existing employees more cost-effective and beneficial to the organization than making new hires. There are also other benefits of training an existing employee that making new hire. First, training existing employee increases the employees’ motivation and morale. The employee feel valued by the company, and this makes him/her boost on the productivity. Training also help employees develop their career paths which make them want to stay in the company into the future. This increases retention rates for the company and reduces the turnover costs. Whenever there is a vacancy, human resource managers should, therefore, focus on training the already existing employees to fill up the gap than to hire new people because of the cost-benefit analysis. Training the existing employees is cost effective and has benefits attached to it unless new hiring which is very expensive but has no benefits attacked. 

Competitive Pay and Employee Retention 

Human resource is the most valuable asset for any organization, and as a result, every manager struggles to keep the better skills into the company. However, employees’ happiness at work is based on how their hard work is rewarded. Every employee wants a better pay for the job they do for both means of living and self-esteem ( Bryant &Allen, 2013 ). Employees always compare their compensation with that of other companies to see if they are being paid fairly. An accountant in one company will compare her salary with an accountant of another company to see whether they get a fair reward. 

Giving employees a competitive pay will make them feel motivated and appreciated for the work they do. This will make them keep working towards the goals of the organization. Paying employees a competitive salaries as well as incentives will boost the morale of the employees and motivate them to want to continue working for the organization. A competitive pay motives the employees and once motivated, they will be willing to remain in the company. Employees usually associate pay to the value for their work. At every time, employees should not feel that what they are being paid does not fairly equate to the amount of work they do as this will lead to demotivation. Also, employees are human beings will needs to meet and this can only be done if they get a better pay for their work. An employee will not be motivated to continue working in an organization paying amount of money that cannot meet the needs of an individual ( Bryant &Allen, 2013 ). Physiological needs are the first among the hierarchy of needs by Abraham Maslow. Workers will always want to work in an organization that values their efforts and pays them a salary that is competitive depending with the work they do. 

Competitive pay can also increase job satisfaction for the employees. Developing a right compensation plan for the employees can lead to a stronger job satisfaction ( Nawab & Bhatti, 2011 ). Receiving a better pay and other incentives makes the employees feel a sense of satisfaction with the work. It makes them feel that they are being appreciated for their hard work and this motivates them further. Everyone loves to be appreciated, and when a person finds a favorable environment, they are more likely to remain in that environment. By receiving a competitive pay, the employees will feel more satisfied, and this satisfaction will make employees committed to their jobs. They will thus want to work for such an organization for as long as possible. However, a less competitive pay can lead to job dissatisfaction making employees want to quit and find other jobs that will give them better pay. 

Financial compensations can act as motivating factor for the employees. While there are other factors that play a crucial role in motivating the employees, money also has a significant role in affecting the motivational level of the employees. Good pay motivates while poor pay demotivates. Employees will analyze their pay based on what other people in the same positions are receiving in other companies and whether what they pay can help them make a living ( Nawab & Bhatti, 2011 ). If they realize that they are paid less compared to other companies, the employees will want to quit and join the best paying firms. However, if they are paid well compared to other firms, they will be motivated to remain in the same company. Better pay attracts and retains top talents, and as competition for more skilled labor rises, employers are attracting top talents by offering them higher pay. 

Conclusion 

Human resource managers have the responsibility of ensuring that employees of the company are retained to avoid incurring turnover costs when hiring new people. Effective training plays a critical role in keeping the employees as it gives them an opportunity for career development. However, a competitive pay also have a role in the employee’s motivation and job satisfaction which eventually results to retention. Various training programs that are effective in improving the skills of the employees must be implemented by the organization to increase the retention rate of top talent employees and avoid turnover costs. Also, companies should offer remuneration that is competitive so that employees do not run away to other better-paying firms. These will ensure higher rate of employee retention. 

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