Why Bother Training Anyway?

• Did you know that the profitability of your company is directly related to..
  • .. the quantity and quality of training provided for your employees

  Business benefits

  Regardless of the size or type of business, training can have a measurable impact on performance and the bottom line.
  
  Research shows that productivity increases while training takes place. Employees who receive formal training can be 230% more productive than untrained colleagues who are working in the same role. (Source: Smith A., 2001, Return on Investment in Training: Research Readings, NCVER)
  
  Higher staff productivity increases business output and can increase market share or expand it by improving products, services and reputations.
  
  Successful training is focused on supporting business objectives.

  Why bother to train your staff anyway?

  A number of organisations and managers still subscribe to the "yes but if I train them they will leave or want more money" belief . BUT what happens if you don't train them and they stay!!!
  
  Learning is the development of knowledge, skills and attitude. Training is required for the following:

  • Triggers i.e. technical change; product development or increased competition
  • To fill skills gaps
  • To learn new skills
  • To update skills
  • To remind us of existing rarely used skills
  • You don't know what you don't know!

  Benefits of training

  Staying competitive is the key to sustainability. Training your employees, keeping them motivated and up-to-date with industry trends and new technologies is essential to achieving that goal.
  
  Staff benefit too, learning new skills and becoming a valued asset in any organisation. Training brings direct benefits to business and can be calculated as a return on investment.

  Improved quality and productivity

  Most businesses provide on-the-job training, particularly during induction. Ongoing training almost always shows a positive return on investment.
  
  Training that meets both staff and employer needs can increase the quality and flexibility of a business's services through:

  • better accuracy and efficiency
  • good work practices - improved quality/standards
  • better customer service
  • increased productivity
  • greater flexibility and responsiveness to change
  • less waste - time/materials
  • reduced maintenance and repair costs

  Motivated employees

  A positive company attitude towards continuous learning fosters a culture of continuous improvement. 'Learning companies' are recognised as being more competitive and efficient.
  
  Employees who are selected for training feel that their contribution is valued and in turn have a more positive attitude towards work and are more committed.

  In short it increases employee Credibility, Motivation, Attitude, Satisfaction and Morale. This greater commitment improves:

  • staff retention / absenteeism
  • progression planning
  • promotion and recruitment
  • customer satisfaction

  Increased staff retention

  Training increases staff retention. Investment in training shows that employers recognise and value employee's contributions, which in turn fosters loyalty.
  
  This is also a significant cost saving, as the loss of one competent person can be the equivalent of one year's pay and benefits.
  
  In some companies, training programs have reduced staff turnover by 70%.

  Knock-on effects

  The benefits of training in one area can flow through to all levels of an organisation. Over time, training will boost the bottom line and reduce costs by decreasing:

  • wasted time and materials
  • recruitment costs - agency fees, advertising etc. is expensive and time consuming
  • recruitment costs through the internal promotion of skilled staff
  • absenteeism

  Staying competitive

  Businesses must continually change their work practices and infrastructure to stay competitive. Training employees to manage the implementation of new technology, work practices and business strategies can also act as a benchmark for future recruitment and quality assurance practices.
  
  As well as impacting on business profit margins, training can improve:

  • staff morale and satisfaction
  • 'soft skills' such as inter-staff communication and leadership
  • time management
  • customer satisfaction

  back to top